The International Finance Corporation (IFC), with support from the Bank of Ghana and the Ministry of Finance, has provided over $100 million to stabilize Ghana’s cocoa supply chain, with total support potentially reaching $300 million this year.
The funding was revealed by IFC Senior Country Manager Kyle Kelhofer on Channel One © TV’s “The Point of View” programme, where he discussed the pressures facing the sector and the steps being taken to support it.
Ghana, the world’s second-largest cocoa producer, relies on a tightly linked financing system to move beans from farm gates to export markets. Delays in expected COCOBOD funding have put pressure on Licensed Buying Companies (LBCs), forcing them to self-finance operations and creating the risk of market disruptions.
To bridge this gap, Kelhofer disclosed that, the IFC has worked closely with local banks, regulators, the central bank, and the Ministry of Finance, channeling funding in local currency to ensure LBCs can continue operations without interruption.
“We’ve tried to step in, including with some support from the regulators, the central bank and the Ministry of Finance,” Kelhofer said, highlighting the close collaboration with authorities to sustain the cocoa supply chain.
“And so we’re proud to have provided over $100 million and maybe up to $300 million this year to help ensure that the whole cocoa supply chain remains viable and that farmers at the farm gate are seeing all the LBCs and getting as price competitive and the best return possible,” he added.
With this coordinated support, LBCs can at least have some stability and breathing room to operate, while farmers can be confident that their beans will be purchased at fair and competitive prices at the farm gate. The funding offers a lifeline to a sector critical to Ghana’s economy and to the livelihoods of hundreds of thousands of cocoa farmers.
