Search Results for: COCOBOD

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Record Cocoa Prices Unlikely to Deliver Economic Windfall for Ghana and Côte d’Ivoire - Fitch Solutions
Business & Economy

Ghana Loses Over 7,000 Tonnes of Cocoa to Smuggling in Volta and Oti Regions

Ghana Gets $200M Capital Injection for Cocoa Purchases After IFC's Partnership with Absa & Complete Farmer
Business & Economy

Cocoa Farmers May Have Received a Haircut, But Their Welfare Remains Strong – Economist Says

CERPA Calls on Gov't to Develop a Comprehensive Cocoa Modernization & Youth Engagement Strategy
Business & Economy

World Bank Calls for Urgent Governance Reforms to Revive Ghana’s Cocoa Sector

Cocoa
News

High Expectations for Randy Abbey as He Inherits a Very Troubled Cocoa Sector 

New Cocoa Price & Farmers’ Welfare: How Recent Price Fails to Maintain 2025 Purchasing Power
Business & Economy

No Cocoa Syndicated Loan could push weak LBCs Out Of Business If alternative is not found in good time

Farmers’ Day Must Become a Turning Point, Not Just a Ceremony, If Agriculture is to Attract Scalable Capital
News

GAWU Renews Call for Creation of Ghana Agricultural Service to Strengthen Sector

News

Finance Minister Hails Goldbod Initiative as Economic Game Changer

After Overtaking Ghana in Cocoa, Ivory Coast Launches Strategy to Overtake Ghana Again in Gold
Business & Economy

Cocoa Farm-Gate Price Reduced to GH₵41,392 a Ton From GH₵58,000

Cocoa Smuggling Threatens Ghana’s Economy as Authorities Intensify Crackdown
News

Cocoa Smuggling Threatens Ghana’s Economy as Authorities Intensify Crackdown

Business & Economy

Ghana’s Cocoa Sector Faces Collapse Amid Urgent Challenges, Despite Attempts by the Regulator to Reverse Decline.

Cocoa Price Adjustment: Even Higher Prices Won’t Automatically Sweeten Farmers’ Lives – IMANI Claims
Business & Economy

Global Cocoa Prices Soar to Record High Amidst Supply Shortages in West Africa

Business & Economy

Ghana’s Cocoa Industry Faces Shift as Foreign Exporters Fill Funding Gap, Marginalizing Local Buyers

Ghana Gets $200M Capital Injection for Cocoa Purchases After IFC's Partnership with Absa & Complete Farmer
News

Ivory Coast Holds Cocoa Price: Will their Higher Price Fuel Smuggling, or Low Demand Can Save the Day

Trump Tariffs: WTO Reveals Ghana Could “Benefit” from Smuggled Cocoa from Ivory Coast
Business & Economy

Cocoa Price Hits Almost $12,000 a Tonne But Ghana May Not Benefit from the Windfall

GCB’s Dividend Delay Raises Questions of Corporate Governance & Threatens Investor Confidence Following GCB Bank PLC’s announcement that it cannot proceed with its approved dividend payment, an expert is revealing that the issues raise serious questions of corporate governance and investor confidence. A notice by GCB Bank announced to shareholders that the Central Bank has cited it for regulatory breaches and hence cannot grant approval for dividends to be paid for last year, despite the approval by the shareholders at GCB’s Annual General Meeting in May this year. The BoG’s decision, GCB says, is linked to a regulatory issue over the reclassification of restructured cocoa bills into bonds, which has put the bank in temporary breach of the single obligor limit. This is a key that caps exposure to a single borrower. While GCB insists this is a compliance matter and not a sign of financial strain, the news lands at a sensitive time for Ghana’s financial sector. The banking industry is still adjusting to the aftereffects of the Domestic Debt Exchange Programme (DDEP), which changed how many institutions account for government-related debt instruments. The Rule Banking and financial consultant, Dr. Richmond Atuahene, explains in an interview with The High Street Journal that the Single Obligor Limit rule can be found in Act 930 of the Banks and Specialised Deposit-Taking Institutions Act 2016. Per the law, it refers to the maximum amount of credit exposure a bank or specialized deposit-taking institution can have to a single customer or obligor. According to the Act, banks are not allowed to exceed a certain percentage of their net own funds to a single obligor, an individual or a company. This is to limit the risk of exposure to a single customer. Some key aspects of the single obligor limit include - Purpose: To reduce systemic risk and encourage diversification - Limit: A maximum of 25% of net own funds to a single counterparty - Objective: To prevent banks from being overly exposed to a single borrower or group, thereby protecting depositors and maintaining financial stability This limit is an essential component of Ghana's banking regulations, aimed at ensuring the soundness and stability of the financial system. The Corporate Governance Concern Dr. Atuahene maintains that for GCB Bank to breach the rule signals weak corporate governance. He cannot fathom why the board members sat aloof for this to occur, knowing very well the existence of the rule. He explains that the “weak corporate governance” has made GCB excessively exposed to the COCOBOD. To him, the high exposure creates what he refers to as seismic risk, meaning that in the event of the collapse of COCOBOD, GCB will be highly affected. He therefore indicated that they cannot pay dividends to shareholders as directed by the Bank of Ghana because it has flouted the law. To him, the regulator is just applying the law by cracking the whip. “It means the corporate governance was bad. Because if the directors were up and doing, they would have seen it earlier and possibly notified the BoG for remedies,” he said. The Impact on Investor Confidence The question now is whether this directive for the bank to halt dividend payouts will dent investor confidence or simply be viewed as a procedural bump. For some investors, dividend payouts are a key indicator of a bank’s strength and reliability. The postponement, emanating from breaches of law, could cause a few to reassess their positions. Others, however, see it as a sign of regulatory discipline, not weakness. Investors will be watching how quickly GCB resolves this. The response time, not just the problem itself, will shape perceptions. GCB says it is “actively engaging” with regulators to restore full compliance and proceed with the dividend as soon as possible. The bank has also reaffirmed its commitment to financial soundness and the protection of shareholder value. For now, the market remains calm, but beneath that calm lies curiosity, and perhaps a little concern.
Business & Economy

GCB Bank’s Dividend Delay Raises Questions of Corporate Governance & Threatens Investor Confidence