Monday, August 11, 2025
LBNN
  • Business
  • Markets
  • Politics
  • Crypto
  • Finance
  • Energy
  • Technology
  • Taxes
  • Creator Economy
  • Wealth Management
  • Documentaries
No Result
View All Result
LBNN

Ghana seeks to borrow $500 million from cocoa traders

Simon Osuji by Simon Osuji
August 16, 2024
in Business
0
Ghana seeks to borrow $500 million from cocoa traders
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Ghana is in talks with cocoa traders to secure a $500 million loan to support its industry operations, as delays in finalizing its annual syndicated loan from regular lenders persist due to uncertainties over crop yields.

The Ghana Cocoa Board, the industry regulator, is negotiating with major bean traders like Olam Group Ltd. and Barry Callebaut AG to raise at least one-third of the $1.5 billion it aims to borrow, according to sources familiar with the situation, Bloomberg reported.

The funds will act as a temporary solution while Ghana continues discussions with banks ahead of the new season starting in October, according to sources close to the matter.

Spokespersons from Barry Callebaut, Olam, and Fiifi Boafo declined to provide a comment.

This is the second consecutive season that Ghana, the world’s second-largest cocoa producer, has sought funding from cocoa dealers instead of securing its annual syndicated loan on time.

The board relies on this facility to cover costs for seedlings, chemicals, fertilizers, and bean purchases from farmers, while the foreign exchange supports the central bank in stabilizing the national currency.

Typically, Cocobod secures the syndicated loan in September, right before the season kicks off. However, last year’s debt restructuring complicated negotiations, pushing the loan approval to December. This delay forced Ghana to borrow $400 million from cocoa traders in November and an additional $200 million in March after lenders withheld the final $800 million tranche.

The banks’ hesitation stemmed from concerns about Ghana’s cocoa revenues due to a drop in output, which has contributed to a global cocoa shortage for the third consecutive year.

Unfavourable weather, disease, and a shortage of fertilizers have hurt bean harvests in Ghana. The country’s production fell from 683,000 tons in 2021-22 to 654,000 tons in 2022-23, with a projected decline to 501,000 tons by September’s end, according to International Cocoa Organization data.

Additionally, Ghana has around 250,000 tons in forward sales contracts yet to be fulfilled, some of which have been deferred from the past three years.

Source link

Related posts

Niger’s military government seizes control of industrial gold mine from Australian operator

Niger’s military government seizes control of industrial gold mine from Australian operator

August 10, 2025
Why The Path to $10 Is Now Wide Open

Why The Path to $10 Is Now Wide Open

August 10, 2025
Previous Post

Kenyan Woman Leah Nyakundi Killed in Washington

Next Post

The D Brief: Wanted: faster deterrence; Trade rules, eased; Navy’s multi-amphib buy; Taliban takeover, mapped; And a bit more.

Next Post
The D Brief: Wanted: faster deterrence; Trade rules, eased; Navy’s multi-amphib buy; Taliban takeover, mapped; And a bit more.

The D Brief: Wanted: faster deterrence; Trade rules, eased; Navy’s multi-amphib buy; Taliban takeover, mapped; And a bit more.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Uganda: President Museveni Urges Busoga Leaders to Prioritize Wealth Creation

Uganda: President Museveni Urges Busoga Leaders to Prioritize Wealth Creation

7 months ago
Apple (AAPL) Plans Key AI Expansion: Stock to $255 Next?

Apple (AAPL) Plans Key AI Expansion: Stock to $255 Next?

4 months ago
Orange Burkina Faso signs A2P SMS and voice gateway deal with VOX

Orange Burkina Faso signs A2P SMS and voice gateway deal with VOX

1 year ago
Health Care Advocates Unveil Historic Obesity Bill of Rights

Health Care Advocates Unveil Historic Obesity Bill of Rights

1 year ago

POPULAR NEWS

  • Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    Ghana to build three oil refineries, five petrochemical plants in energy sector overhaul

    0 shares
    Share 0 Tweet 0
  • The world’s top 10 most valuable car brands in 2025

    0 shares
    Share 0 Tweet 0
  • Top 10 African countries with the highest GDP per capita in 2025

    0 shares
    Share 0 Tweet 0
  • Global ranking of Top 5 smartphone brands in Q3, 2024

    0 shares
    Share 0 Tweet 0
  • When Will SHIB Reach $1? Here’s What ChatGPT Says

    0 shares
    Share 0 Tweet 0
  • Privacy Policy
  • Contact

© 2023 LBNN - All rights reserved.

No Result
View All Result
  • Home
  • Business
  • Politics
  • Markets
  • Crypto
  • Economics
    • Manufacturing
    • Real Estate
    • Infrastructure
  • Finance
  • Energy
  • Creator Economy
  • Wealth Management
  • Taxes
  • Telecoms
  • Military & Defense
  • Careers
  • Technology
  • Artificial Intelligence
  • Investigative journalism
  • Art & Culture
  • Documentaries
  • Quizzes
    • Enneagram quiz
  • Newsletters
    • LBNN Newsletter
    • Divergent Capitalist

© 2023 LBNN - All rights reserved.