Bank of Ghana must fund purchase of cocoa at a moderate interest rate – John Kwakye proposes
Published:
3 months ago
Source:
3News
The Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye has made some proposals for cocoa purchase following the decision of the Ghana Cocoa Board (COCOBOD) to wean itself off syndicated loans. He proses that the Bank of Ghana (BoG) funds cocoa purchases at a moderate interest rate and be reimbursed with the cocoa forex proceeds. To him, the syndicated loan idea was flawed, a situation that required thinking outside the box to fund cocoa purchases. His comments come at a time when the Chief Executive Officer of COCOBOD, Joseph Boahen Aidoo announced that, for the first time in three decades, the organization would not secure offshore syndicated loans to finance the purchase of cocoa beans for the 2024/2025 crop season. Targeting the purchase of around 650,000 metric tonnes of cocoa beans, COCOBOD stated that it plans to finance the procurement entirely from its internal operations.