Parliament has granted approval for an $800-million loan agreement between the Ghana Cocoa Board (COCOBOD) and a consortium of banks and financial institutions.

The loan aims to finance the purchase of cocoa beans for the upcoming 2023/2024 Crop Season.

The approved loan is slated to fund approximately 47 per cent of the anticipated 850,000 tonnes of cocoa beans from farmers through Licensed Buying Companies during the upcoming cocoa season.

In response to Reuters' report that COCOBOD borrowed up to $200 million from cocoa traders to address a funding gap, COCOBOD affirmed adopting a two-prong financing strategy. 

The board assured that concrete measures have been taken to secure ample funds for the 2023/2024 crop season.

COCOBOD, in a statement,  emphasised firm assurances from bankers regarding timely fund availability and the laying of a "Cocoa syndicated Loan" in Parliament for consideration and approval.

The proposed disbursement of the 2023/2024 loan facility is earmarked for various cocoa-related operations, including farmers' services, disease and pest controls, fertiliser distribution, farmer pension schemes, cocoa roads, industry inputs, child education support, and more.