The International Finance Corporation (IFC) has announced a partnership with Societe Generale Ghana Plc, a leading Ghanian bank, to increase access to finance in Ghana’s cocoa sector, support sustainable production, and improve market access for tens of thousands of smallholder farmers.

Under the partnership, IFC will provide a local currency loan of up to $40 million equivalent through an unfunded risk-sharing facility to Societe Generale (SG) Ghana.

The facility is expected to support up to $80 million equivalent in financing to enable licensed buying companies (LBCs) to purchase cocoa beans directly from smallholder farmers. In addition to the financing component, IFC aims to provide advisory services and capacity building to SG Ghana to enhance traceability, promote sustainable sourcing practices, and address deforestation risks in the cocoa value chain.

IFC’s support will build resilience by improving cash flow for farmers and LBCs, strengthening market linkages, and promoting environmentally sound practices that ensure long-term viability of cocoa farming in Ghana.

Ghana’s cocoa sector plays a critical role in the country’s economy, contributing about 6% of Gross Domestic Product (GDP) and supporting the livelihoods of an estimated 30% of the rural population. However, the sector faces increasing challenges, including limited access to finance and declining productivity.

“This partnership underscores IFC’s recognition of SG Ghana’s commitment to financing the real economy of Ghana and cocoa in particular. It is also a testament to the long-standing relationship between Ghana Cocobod and Societe Generale as a Group,” said Hakim Ouzzani, Managing Director of Societe Generale Ghana. As the funding of the cocoa industry evolves in Ghana, SG and IFC believe that this commitment will assist in increasing the capability of LBCs to continue procuring cocoa locally in a sustainable and impactful manner.”

“Access to finance is a challenge for stakeholders in Ghana’s cocoa sector,” said Kyle Kelhofer, IFC Senior Country Manager for Ghana.

“This partnership with Societe Generale will help improve access to finance in the cocoa value chain, support smallholder farmers, and promote more sustainable production practices."

Over four years, the facility is expected to enable up to $320 million in cocoa trade and benefit an estimated 75,000 smallholder farmers by improving their access to markets, inputs, and technical expertise. This investment supports the purchase of Rainforest Alliance certified cocoa, contributes to environmental sustainability, and helps reduce deforestation risks.

Rainforest Alliance certified cocoa is produced according to rigorous environmental, social, and economic standards aimed at conserving biodiversity, improving livelihoods, ensuring sustainable land use, and advancing the human rights of farmers and workers.

IFC and Societe Generale Ghana have partnered since 2020, with IFC providing approximately $75 million in local currency financing to support the bank’s lending to small and medium-sized enterprises across Ghana.