Absa Bank Ghana and IFC announce $50m facility to expand cocoa financing

Absa Bank Ghana and the International Finance Corporation (IFC) have jointly announced a $50 million facility aimed at expanding financing for Licensed Buying Companies (LBCs) that purchase traceable cocoa directly from farmers in Ghana. This unfunded risk participation facility will enable Absa Bank Ghana to provide financing to selected LBCs during the cocoa buying season, ensuring consistent market access for over 139,000 smallholder farmers whose livelihoods depend on the cocoa sector.

The facility, supported by the Private Sector Window of the Global Agriculture and Food Security Program, is designed to finance the purchase of traceable cocoa from farmers across the country while promoting sustainable farming practices aligned with the Paris Agreement on climate change. The ceremony for the partnership announcement was held at the World Bank office in Accra on September 16.

Edward Nartey Botchway, Managing Director of Absa Bank Ghana, emphasized the importance of Ghana's cocoa sector to the nation's economy and livelihoods, stating that the partnership with IFC will help finance Licensed Buying Companies to purchase traceable cocoa throughout the buying season and maintain reliable market access for farmers.

Botchway highlighted Absa Bank Ghana's commitment to supporting farmers who feed the economy through this partnership, which will bolster the bank's ability to finance LBCs and connect cocoa production to the market.

This collaboration enhances Absa Bank Ghana's existing support for one of Ghana's most vital export sectors and strengthens the bank's capacity to finance the cocoa value chain, benefiting livelihoods, export earnings, and economic activity in farming communities.