The Ghana Cocoa Board (COCOBOD) has refuted as untrue, suggestions by the Minority in Parliament to the effect that international financiers have rejected requests for syndicated loans and consequently expelled it from the market.

In a press statement issued on Thursday, COCOBOD described the Minority's claims as misleading and factually incorrect, maintaining that the decision to reduce reliance on syndicated external borrowing is a strategic one aimed at bolstering its operations and finances.

The statement clarified that the syndicated banks had, in fact, responded positively to COCOBOD’s Request for Proposals (RFP).

“Indeed, notwithstanding our intentions to wean off syndicated transactions, we still have committed contracts that need to be fulfilled through the syndicated process. These transactions have necessitated a discussion with financial institutions, and nothing in this process indicates, to us, a lack of confidence in COCOBOD’s creditworthiness from these financial institutions,” portions of the statement read.

Read also: We will not back COCOBOD’s decision to self-finance purchase of cocoa beans – Minority

COCOBOD also emphasised that its decision to explore non-syndicated funding is part of a broader strategy to diversify its financial resources, aiming to make COCOBOD more self-sustaining and beneficial to farmers in the long term.

COCOBOD also refuted the Minority’s claim of continuous losses, specifically denying the alleged GHȼ4.2 billion loss in 2023.

Instead, the Board reported a profit of GHȼ2.3 billion for the 2022/2023 crop season, based on audited accounts by Ernst & Young (EY).

This profit, COCOBOD stated, reflects the success of its strategic initiatives, including cost-cutting, improved operational efficiency, and targeted investments.

On cocoa production and sectoral interventions, the board revealed that Ghana recorded its highest-ever cocoa production volume of 1.045 million metric tonnes during the 2020/2021 crop season.

“While recent production levels have faced structural challenges, including adverse weather conditions (i.e., last year’s devastating El Nino force majeure) and the impact of the CSSVD, it must be reiterated that COCOBOD has implemented significant interventions and mitigation measures,” the statement read.

It also reaffirmed the government’s commitment to the cocoa sector, citing investments in infrastructure, subsidised fertilizers, and a comprehensive cocoa rehabilitation program as evidence of ongoing support.

COCOBOD again dismissed the Minority’s claim that the government has “destroyed” the cocoa sector, arguing that these allegations fail to acknowledge the complexities of the global cocoa industry and the proactive measures being taken to secure the sector's future.

In view of this, the COCOBOD urged the public to disregard the Minority’s press release, which it described as an attempt to politicise a strategic policy decision.

COCOBOD called on all stakeholders, including the Minority, to engage in constructive dialogue to support the continued growth and development of Ghana’s cocoa industry.