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Business News Tue, 5 Nov 2019

Gov’t provides US$600 million stimulus package to COCOBOD

The Ghana Cocoa Board (COCOBOD) will receive a US$600 million capital injection from government to increase the country’s cocoa production to 1.5 million tonnes by 2027.

The stimulus package for COCOBOD is a loan from the African Development Bank (AfDB) facilitated by Cabinet and awaiting parliamentary approval.

Mr Joseph Boahen Aidoo, Chief Executive Officer, COCOBOD, made this known at a media briefing at the Peduase Presidential Lodge in the Eastern Region on Sunday.

Mr Boahen said it was the first time Ghana was taking a medium to long term financing for the COCOBOD, adding that, the loan agreement was part of a seven-year development programme to transform cocoa production and processing in the country.

He said the loan facility had components that aimed at increasing production of cocoa in the country, make cocoa farmers to expand their farms and outputs and rake-in more profits.

Outlining the components of the loan facility, Mr Boahen said $140 million of the facility would be used to eradicate cocoa diseases, while US$82.7 million would be used for growing new cocoa trees to increase production.

"We will also commit $68million of the facility to hand pollination and pruning practices, $50million for warehousing, cocoa farmers’ electronic database, and $200million into processing and value addition," he said.

He noted that by the seventh year, the project would have been fully implemented, from 2020-2027, and move the country's production capacity from 850 million metric tonnes to 1.5 million tonnes.

Mr Boahen said Ghana and Cote d’Ivoire had been able to implement the Living Income Differential (LID) policy, which would help the two countries decisively determine the purchasing power of their cocoa produce on the international market.

Source: ghananewsagency.org
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