Ghana’s cocoa regulator will this week finalise a $600 million loan to finance new warehouses, rehabilitate plantations and support the processing sector, officials said on Monday.
Under the deal, the world’s number two cocoa producer, Ghana sought $250 million from development finance institutions led by the African Development Bank (AfDB), while Credit Suisse Group AG was charged with lining up $350 million from commercial lenders.
“Cocobod has reached financial close. They will be tidying that up tomorrow. All the lawyers are going to be here tomorrow,” AfDB President Akinwumi Adesina told Reuters on the sidelines of its Africa Investment Forum in Johannesburg.
An official for the regulator, known as Cocobod, confirmed they planned to close the deal at the conference on Tuesday.
The rehabilitation programme will carry out the replacement of ageing cocoa trees and the destruction of plantations infected with swollen shoot disease. Other financing will help Cocobod offer short-term working capital support to local cocoa-processing companies.
Increased warehouse capacity will allow Ghana to store its cocoa beans longer without deterioration in quality.
Ghana and its neighbour Ivory Coast – the world’s top producer – have stepped up cooperation in the sector in recent years, aiming to exert greater influence over global cocoa prices.