Banking and Finance

Access Bank and IFC seal $134 million cocoa sector risk-sharing deal

Access Bank and IFC seal $134 million cocoa sector risk-sharing deal
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Access Bank Ghana Plc and the International Finance Corporation (IFC) have signed a Memorandum of Understanding (MoU) to inject $134 million into the cocoa value chain.

The agreement, announced on Friday, January 23, 2026, targets the acute financing gap faced by Licensed Buying Companies (LBCs), the essential intermediaries who bridge the gap between smallholder farmers and the international market.

By providing affordable credit and enhancing liquidity, the partnership aims to transform the productivity, resilience, and sustainability of a sector that supports over 800,000 farm families nationwide.

The $134 Million Financial Architecture

The deal is structured through an unfunded risk-participation facility. Under this arrangement, the IFC—leveraging its own resources and the Global Agriculture and Food Security Program (GAFSP)—will provide up to $67 million in risk support. This allows Access Bank Ghana to double that capacity, extending a total of $134 million in credit to seven leading LBCs.

The facility is specifically designed to bypass the traditional hurdles of regulatory capital and single-obligor limits that often prevent local banks from lending at the scale required by the cocoa industry.

A National Priority: Bank of Ghana Weighs In

The Second Deputy Governor of the Bank of Ghana, Mrs Matilda Asante-Asiedu, attended the ceremony to lend regulatory backing to the initiative. She characterised the risk-sharing scheme as a vital tool for national economic resilience.

“The risk-sharing guarantee scheme represents a strategic partnership to unlock opportunities across the agricultural sector, particularly cocoa,” Mrs Asante-Asiedu remarked.

She further noted that ensuring the liquidity of LBCs is a matter of national importance, as a stable cocoa sector helps safeguard rural incomes, supports the cedi, and contributes to the resilience of the exchange rate.

Empowering the "Backbone" of the Economy

Speaking at the signing ceremony in Accra, Pearl Nkrumah, the Managing Director of Access Bank Ghana, described the intervention as a strategic "unlocking" of the sector’s potential.

“Access Bank's support to LBCs will unlock the liquidity they need during the purchasing season, help improve traceability, and encourage more sustainable sourcing practices that will position the cocoa sector for long-term competitiveness,” Nkrumah stated.

She emphasised that the bank is committed to scaling financing responsibly, ensuring that the entire "cocoa ecosystem" remains financially stable while farmers receive timely payments for their produce.

Sustainability and Job Creation

Natalie Kouassi Akon, the IFC Division Director for West Africa, highlighted the broader socio-economic implications of the deal. She noted that agriculture must be transformed from a subsistence activity into an engine for job creation to address youth unemployment.

“Our partnership with Access Bank will help local buying companies secure the liquidity they need to purchase cocoa beans from smallholder farmers while promoting sustainability, climate-smart agriculture and stronger rural economies,” Akon said.

A key component of the agreement is the focus on traceability. The funding will support the procurement of sustainably produced beans, ensuring compliance with emerging global market standards such as the Rainforest Alliance certification and the EU Deforestation Regulation (EUDR).

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.