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Ghana’s cocoa board agrees $800 million loan with banks

Published

1 year ago

December 19, 2023

The deputy chief executive officer of Ghana’s Cocoa Marketing Board has confirmed that the body has signed $800 million syndicated loan with banks, and expects to draw down the first $600 million from next week.

The West African nation uses a yearly syndicated loan, typically agreed upon at the beginning of the farming season in September, to finance its purchases of beans from farmers. However, this year’s loan has been delayed as Ghana attempts to restructure its bilateral and commercial debts while battling its worst economic crisis in a generation.

“I joined COCOBOD in 2018 and this is the hardest transaction we have had,” COCOBOD Deputy CEO, Ray Ankrah, told journalists.

“It’s been signed and we are working on the drawdown. We’re drawing down $600 million by the end of this week and we expect to draw down the $200 (million) in the middle to the end of January,” he said, adding that the terms of the loan had not changed from those presented to parliament last month.

The transaction was recently approved by the Ghanaian parliament, enabling the COCOBOD board to finalise the documentation with the participating banks. The law permits COCOBOD to pay interest at a rate of almost 8%, which consists of a 2.65% margin and the one-month Secured Overnight Financing Rate (SOFR), which is currently at 5.3%.

Ghana is the world’s second-largest cocoa producer behind neighbouring Ivory Coast. West Africa collectively supplies two-thirds of the world’s cocoa crop, with nearby countries like Ghana, Nigeria, Cameroon, and Togo producing additional 1.55 million tonnes annually. But production has been affected by irregular climate, drought and flood in recent years.

Some observers have argued that the continent must step into the processing of raw materials like cocoa to maximize market opportunity for end products, otherwise the industrialized societies with chocolate factories will continue to milk the space at the expense of producers of local raw materials.

Related Topics:Cocoa Cocoa Board Featured Ghana

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Moroccan annual inflation rises to 0.8% in November

Published

23 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”