Parliament on Wednesday approved a loan agreement of $1.8 billion for the Ghana Cocoa Board (COCOBOD) to purchase cocoa beans for the 2015/2016 crop season.
The amount would be provided by a consortium of banks overseas and Government has agreed to guarantee the deal.
Government has also requested Parliament to approve a waiver of stamp duty amounting to $18 million on an offshore syndicated receivable-backed trade facility for the $1.8 billion loan which was also approved.
Presenting the report, the Chairman of the Finance Committee of Parliament, James Klutse Avedzi said the money would be used to purchase 900,000 metric tonnes of cocoa in the coming crop season.
According to the Chairman of the Finance Committee, the trade facility is also to enable COCOBOD raise adequate funds to purchase cocoa beans from farmers through Licensed Buying Companies for the 2015/2016 cocoa season and that sourcing of the facility would also provide the nation with the opportunity to demonstrate its good track record on borrowing from the international market.
“The cocoa industry has been the backbone of Ghana’s economic development over the years. The industry has over the years created employment for millions of Ghanaians and serves as a major source of foreign exchange earner for the country,” Mr Avedzi said, stressing that cocoa production in the country has been increasing, reaching an all time high of over one million metric tonnes in the 2010/2011 crop season.
He indicated that the increase in the levels of production requires substantial financial resources to enable the Ghana Cocoa Board to finance the purchase of cocoa beans.
The ranking member of Finance, Dr Anthony Akoto Osei asked COCOBOD to use the money for the intended purpose so that the target of 900,000 tonnes would be achieved.
He also called on COCOBOD to properly account for monies used to construct ‘cocoa roads’ in the country.
Last two weeks, the ranking member of Food, Agriculture and Cocoa Affairs, Dr Owusu Afriyie Akoto asked the Minister of Finance in Parliament why the government came to House for $1 billion syndicated loan to purchase about 850,000 metric tonnes of cocoa for the 2014/2015 crop season but bought only 650,000 metric tones.
The ranking member expressed dissatisfaction with the government for not paying much attention to the cocoa industry which has been performing badly over the past six years.
<<Print>>