Ghana’s Cocoa Regulator Secures $288 Million At 11% to Pay Farmers
Cocoa farmers have been facing a crisis for some time now, struggling to sell their prized cocoa beans after months of tending their crops. However, relief has finally come. In The post Ghana’s Cocoa Regulator Secures $288 Million At 11% to Pay Farmers appeared first on Ventureburn .
Ghana's cocoa regulator, the Ghana Cocoa Board, managed to secure $288 million in domestic funding at an 11% interest rate to ensure timely payment to farmers. The Cocoa Capital special purpose vehicle sold the short-term debt, which matures in June 2027. COCOBOD sold 85% of the $340 million target, but this is only the first tranche of a three-part plan under a 16.3 billion cedi ($1.38 billion) domestic financing program.
The previous financing arrangements from international banks fell through, causing payment delays for farmers. With the new funding, COCOBOD can begin paying licensed buying companies, who can then pay farmers for their cocoa beans. The shift to domestic financing and local investors signals a significant change for Ghana, which is the world's second-largest cocoa producer.
The funding's success will depend on the speed of debt issuance, timely payments to buyers, and ensuring farmers receive their payments on time.
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