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Ghana’s cocoa regulator Cocobod to spend $200 million W’Bank loan on disease-hit farms

Published

3 months ago

February 16, 2024

The deputy CEO in charge of operations for Ghana’s Cocobod has revealed that the regulator will use a portion of a $200 million World Bank loan to restore plantations that have been devastated by the cocoa swollen shoot virus, which lowers yields and kills plants.

The bug has destroyed over 500,000 hectares of farmlands and decreased the country’s production of cocoa.

After reaching a peak of 1.048 million tonnes in the 2020–21 season, Ghana’s output fell to 600,000 metric tonnes last year as a result of the cocoa-swollen shoot virus, ageing plantations, illicit mining, and smuggling.

According to a project information sheet, a total of $132.8 million of the loan that the government secured last year and the counterpart money would support Cocobod’s efforts to restore crops and advance our understanding of viral strains.

“The rehabilitation will take a minimum of five years to start getting economic production,” Cocobod’s Emmanuel Opoku told Reuters, adding that efforts had been hampered by the country’s economic crisis and the board’s limited funds.

According to Opoku, the program—which was initially intended to span 156,000 hectares of plantations—was engulfed in Ghana’s worst economic crisis in a generation, which resulted in skyrocketing inflation and a significant depreciation of the cedi.

More than 88,000 hectares of farmlands benefited from the AfDB facility, he claimed, with 40,000 hectares prepared for return to farmers in “the coming days.”

After its neighbour, Ivory Coast, Ghana is the second-largest producer of cocoa worldwide. Two-thirds of the world’s cocoa crop is produced in West Africa, with an extra 1.55 million metric tonnes produced annually by neighbouring nations including Ghana, Nigeria, Cameroon, and Togo. However, severe droughts, floods, and unpredictable weather have all had an impact on productivity.

Some analysts contend that in order to optimise the market for finished goods, the continent needs to get involved in the processing of raw materials like cocoa. If not, industrialised countries with factories manufacturing chocolate would continue to take advantage of the space, exploiting local producers of raw materials.

Related Topics:Cocoa Featured Ghana West Africa

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VenturesNow

Egypt: Foreign debt rises by $3.5 billion in Q4 2023

Published

34 mins ago

May 10, 2024

Ifeoluwa Dada

According to data provided by the central bank on Thursday, Egypt’s foreign debt increased by $3.5 billion for the three months ending in December.

The aggregate amount of external debt increased to $168.0 billion, up from $164.5 billion in September and $162.9 billion in December 2022.

Since 2015, Egypt has increased its external debt fourfold to finance the construction of new capital, develop infrastructure, procure weaponry, and sustain an overvalued currency.

Following the Ukraine crisis, there was a persistent lack of foreign currency, leading to a significant departure of international investors. As a result, the government had to seek assistance from the International Monetary Fund. In March, an agreement was reached for a financial package worth $8 billion.

Egypt has consented to reduce expenditures on major government initiatives as a component of the package. According to the central bank, the foreign debt, of which 82.5% was long-term, accounted for 43% of the gross domestic product.

Egypt has been grappling with a foreign exchange issue that has hindered economic activity and resulted in a scarcity of imported goods.

The country’s aim to generate $10 billion within four years by 2022 through private investment in public infrastructure. The nation is divesting assets to bolster the private sector and generate foreign money.

VenturesNow

IMF, DR Congo agree on final review of loan deal

Published

20 hours ago

May 9, 2024

Ifeoluwa Dada

The International Monetary Fund (IMF) says it has achieved a staff-level agreement with the Democratic Republic of Congo (DRC) over the final assessment of a $1.5 billion loan program.

The fund however emphasized the importance of the DRC effectively handling the funds obtained from a modified mining agreement. This brings Congo closer to successfully fulfilling an IMF program for the first time. Prior agreements have been disrupted due to concerns regarding the absence of openness and clarity in its extensive mining industry.

“Performance under the (three-year) program has been generally positive, with most quantitative objectives met and key reforms implemented, albeit at a slow pace,” the Fund said in a statement.

Upon receiving approval from the IMF board, the accord will enable the release of a final instalment of approximately $200 million. The IMF has highlighted the need for the world’s leading cobalt provider, which is also the third-largest copper producer, to include the beneficial effects of the recently modified Sicomines joint venture with Chinese businesses in its updated budget law for 2024.

“In addition, mechanisms will need to be put in place or reinforced to ensure the proper use and governance of these funds,” the Fund said.
President Felix Tshisekedi advocated for revising the 2008 infrastructure agreement with Sinohydro Corp and China Railway Group, aiming to enhance the advantages for Congo. A contract was executed in March.

“The IMF is concerned about the mechanisms for using this money and has asked for it to be paid into the public treasury accounts rather than being managed by an agency as has been done in the past,” a finance ministry official, who requested anonymity, told Reuters.

As part of the IMF program, Congo was required to disclose mining contracts. Last week, Congo finally revealed the updated terms of the Sicomines agreement, which state that the Chinese side will invest approximately $7 billion in infrastructure, contingent upon high copper prices.

According to a 2023 report by Congo’s national auditor, just $822 million out of the projected $3 billion for infrastructure investments was distributed under the earlier version of the agreement.

The amended agreement still contains provisions that Congolese and international civil society organizations perceive as unfavourable to Congo. One of the benefits that Sicomines enjoys is the exemption from tax payments until the year 2040.