OMOTAYO ARAOYE
The world’s second-largest producer of Cocoa, Ghana Cocoa Board, has received a $200Million loan support from African Development Bank (AfDB) and Japan International Cooperation Agency, (JICA) to boost the produce in the country.
This marks the first time AfDB and JICA will be providing direct co-financing under the Enhanced Private Sector Assistance for Africa initiative (EPSA4) as well as being the first non-sovereign project.
The fund is from the $600 million syndicated loan agreement signed in November last year at the Africa Investment Forum in Johannesburg. JICA and the African Development Bank agreed to provide $3.5 billion in joint financing under the fourth phase of the Enhanced Private Sector Assistance for Africa Initiative.
Ghana supplies 70 percent of all cocoa beans imported into Japan and the commodity is seen as one of the nation’s most essential imports.
During the loan disbursement occasion held in Accra, Ghana by proxy this week, hundreds of observers across the globe were in attendance, Ghana Cocoa Board (COCOBOD) and government representatives, participating lenders, which included development finance institutions: the African Development Bank (AfDB.org), the Japan International Cooperation Agency (JICA), the Development Bank of Southern Africa and Cassa Depositi e Prestiti Spa. Commercial lenders were represented by Credit Suisse AG, and the Industrial and Commercial Bank of China, London Branch.
Ghana Cocoa Board (COCOBOD), CEO, Joseph Boahen Aidoo stated during the ceremony “There are challenges with productivity in the country’s cocoa production, as well as with the systems in place for processing and the distribution of cocoa. By strengthening the cocoa bean-centric agricultural value chain and related industries, the facility will help COCOBOD to contribute to achieving Sustainable Development Goals,”
Aidoo further explained that, COCOBOD will use the facility to raise cocoa yields per hectare and increase Ghana’s overall production. Activities under the facility will include the allocation of financing to sustainably increase cocoa plant fertility, improve irrigation systems, and rehabilitate aged and disease-infected farms. The funds will also help increase warehouse capacity and provide support to local cocoa-processing companies.
According to the African Development Bank Vice President for Agriculture, Human and Social Development, Dr. Jennifer Blanke, ahead of the event, “African countries like Ghana and Cote d’Ivoire produce nearly three-quarters of the global supply of cocoa. This significant Bank-facilitated loan to COCOBOD aims to improve the quantity and quality of local processing, boosting incomes of local farmers and their communities and generating new and better jobs,”
Chief Representative of JICA Ghana, Yasumichi Araki also said: “JICA will continue to commit to the cocoa industry in Ghana through innovative interventions to COCOBOD.”
JICA has supported COCOBOD to build capacity to quality-test cocoa beans. Ghana supplies 70% of all cocoa beans imported into Japan and cocoa is seen as one of the nation’s most essential import commodities.
The Development Bank of Southern Africa is also partnering with COCOBOD to further enhance Ghana’s position as one of the leading producers of cocoa in the world.
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