VenturesNow

Ghana’s cocoa regulator plans to borrow up to $1.5 billion for purchase of cocoa

Published

7 months ago

May 28, 2024

To offset low output and finance the 2024–2025 cocoa imports, Ghana’s cocoa regulator plans to borrow up to $1.5 billion by September, according to two COCOBOD sources with knowledge of the agreement quoted by Reuters.

Using an annual syndicated loan, the second-largest cocoa producer in the world after neighbouring Ivory Coast pays farmers for their beans. Usually, an agreement is reached in September, when the season begins. But because of the low cocoa output this season thus far, the $800 million loan for this year has been delayed. Since the season’s cocoa output is expected to be nearly 40% lower than anticipated, COCOBOD has withdrawn $600 million and cancelled the remaining amount, making it unable to guarantee the entire loan.

“A request for proposal sent to banks indicates COCOBOD will borrow up to $1.5 billion next season. It is understood the banks are sizing it and together (with COCOBOD), they will decide an optimal amount,” said one COCOBOD source.

A second source within COCOBOD expressed confidence that the syndication would proceed. According to the same source, at least one foreign bank has visited Ghana to look over cocoa farms before deciding on the offer, and another is due to go there next month.

The sources, who wished to remain anonymous because they are not authorized to speak to the media, stated that production is anticipated to rebound to 810,000 metric tons in the upcoming season. When contacted for comment, COCOBOD remained silent.

Cocoa smuggling, sickness, and unfavourable weather have all had an impact on Ghana’s cocoa production. According to COCOBOD, it is anticipated to be about 40% below target in the 2023–2024 season.

The industry watchdog claimed that during the 2022–2023 season, it lost almost 150,000 tons of cocoa beans to illicit gold mining, or galamsey as it is known locally. It anticipates significantly higher losses this season as more smuggling is encouraged by a global increase in cocoa prices.

According to COCOBOD, the swollen shoot virus destroyed almost 590,000 hectares of cropland between 2018 and 2024. According to one source, they were optimistic that Ghana would still reach the 810,000-ton objective for the upcoming season since improved weather and restored cocoa estates will increase production.

The first four months of this year saw an almost 50% year-over-year decline in Ghana’s cocoa export revenue, according to data released this week by the central bank.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

22 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.”