COCOBOD to attract billions before year-end - BoG Governor

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• Francis 3 months ago

  The Governor is doing a good job. Sir, more grease to your elbow. You are doing your best to help build Ghana.

  The Governor is doing a good job. Sir, more grease to your elbow. You are doing your best to help build Ghana.

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• Alex 3 months ago

  Hmm I have the feeling the governor is talking too much. Don't they have a unit at BoG in charge of public relations? It appears in Ghana talkativeness is construed as effectiveness. This is why everytime people want to seen ...
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  Hmm I have the feeling the governor is talking too much. Don't they have a unit at BoG in charge of public relations? It appears in Ghana talkativeness is construed as effectiveness. This is why everytime people want to seen issuing out statements. Let us learn from John Mahatma how he addressed the third term issue. He kept quite doing what was expected of him and decisively came out at the right time to declear his stand on the issue.

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• Tamale North Boy 3 months ago

  Tell us the truth. You don't have the funds. Stop wishy washy management

  Tell us the truth. You don't have the funds. Stop wishy washy management

  reply
• Truth Teller 3 months ago

  This “new” cocoa purchasing financing model was started by the previous management of COCOBOD in 2024
  
  
  *The Chief Execu­tive Officer (CEO) of the Ghana Cocoa Board (CO­COBOD), Mr. Joseph Boahen Aidoo, has said that ...
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  This “new” cocoa purchasing financing model was started by the previous management of COCOBOD in 2024
  
  
  *The Chief Execu­tive Officer (CEO) of the Ghana Cocoa Board (CO­COBOD), Mr. Joseph Boahen Aidoo, has said that the decision to finance cocoa purchase for the 2024/2025 crop season through zero borrowing arrangement made the sector more viable and sustainable.*
  
  *Speaking at the bi-weekly Minister’s Briefing organised by the Ministry of Information in Accra, Aidoo explained that the zero borrowing arrangement marked a major shift from the existing sys­tem of financing cocoa purchase over the years through loans from external sources, and constitut­ed a new financing innovation designed to reduce the cost of borrowing to the board.*
  
  He said that under the new zero financing arrangement, international buyers would pay directly into the Cocoa Marketing Company’s account on behalf of COCOBOD.
  
  According to him, this system effectively eliminates the previous arrange­ment where funds were raised overseas through syndicated loans, which had become increasingly expensive.
  
  “The financing arrangement be­ing pursued now is a homegrown model, and so far, so good,” he said.
  
  “We are unburdened with any interest and ancillary costs, which significantly reduces the financial pressure on the industry,” the report by the Ghanaian Times quoted Aidoo as saying.

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• Truth Teller 3 months ago

  Watch the date
  
  Ghana's Cocobod to ask traders to pre-finance bean purchases in new funding model
  By Maxwell Akalaare Adombila
  ***August 23, 202411:53 AM CDTUpdated August 23, 2024***
  
  ACCRA, Aug 23 (Reuters) - Ghana's ...
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  Watch the date
  
  Ghana's Cocobod to ask traders to pre-finance bean purchases in new funding model
  By Maxwell Akalaare Adombila
  ***August 23, 202411:53 AM CDTUpdated August 23, 2024***
  
  ACCRA, Aug 23 (Reuters) - Ghana's cocoa marketing board, Cocobod, is fine-tuning a new funding model for bean purchases that will require global traders to deposit at least 60% of the value of their forward contracts at the start of the season, two sources told Reuters.
  The new system will replace a three-decade old pre-export syndicated loan from international banks, which Cocobod said this week it would not raise for its 2024/25 cocoa season for the first time since 1992. Ghana, the world’s second biggest cocoa producer after Ivory Coast, previously used the loan to finance bean purchases from farmers and shore up its reserves, helping to cool pressures on the cedi currency.
  But Cocobod paid a record 8% interest on last year’s loan and now expects the new funding model to save it over $150 million in interest payments.
  Under the new system, part of a trader’s deposit will be used to fund purchases from farmers via an existing partnership with a licensed cocoa buying company (LBC).. In this way, traders will work with LBCs by funding them to buy the cocoa, while Cocobod will act as an intermediary, said the source, requesting anonymity as they were not authorised to speak on the issue.
  "Basically, we are saying traders work with LBCs and if so, they must fund them to buy the cocoa, but Cocobod will act as the intermediary," said the source, requesting anonymity as they were not authorised to speak on the issue.
  
  Much of Ghana's cocoa is bought by large, diversified trade houses with deep pockets, including Olam, Barry Callebaut, Cargill, Touton and Ecom.
  Traders typically sign deals to buy beans - like any other commodity - months in advance in the hope of reselling later at a profit.
  "With this (new) model, the trader pays the remaining 40% (of the contract sum) when picking the cocoa," the Cocobod source said.
  
  Cocobod is yet to decide with traders if the pre-financing should attract interest or discount on beans supplied, it said.
  President of LICOBAG, Samuel Adimado said if well-implemented, the model could address perennial delays in payments by Cocobod, raise buyers’ margins and reduce their costs with a potential reduction in bank loans to fund purchases.
  "It requires discipline; if there's no cocoa, LBCs shouldn’t be given money. If the LBC receives money but can't find cocoa, it must return it. If these are properly applied, perfect," Adimado said.
  
  Unlike multinational LBCs, local cocoa buyers lack trader partners, putting them at a potential disadvantage. Adimado said the model must recognise this.
  "The question is, what will be the arrangement for them? It's very important to take care of the indigenous LBCs and strengthen them so that we don't leave anybody behind."
  Cocobod will launch the 2024/25 season on Sept. 1, earlier than usual, with a reduced production target of 650,000 tonnes.
  
  Reporting by Maxwell Akalaare Adombila Editing by Alessandra Prentice and David Evans

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• Atsu 3 months ago

  Fake governor this system was introduced by npp before you your appointment give credit to the former ceo Abraham Aidoo and stop deceiving NDC gullible followers

  Fake governor this system was introduced by npp before you your appointment give credit to the former ceo Abraham Aidoo and stop deceiving NDC gullible followers

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