PAY THE COCOA FARMERS FOR THEIR SWEAT AND SHUN THE PR
Dr. Randy Abey is going around saying that the previous administration couldn't pursue syndication because of debt. The question is, did he see the RFP from Cocobod issued in February 2024 for the 2024/25 cocoa season, along with the responses from the banks? This RFP was in line with Cocobod's long-standing practice. If he hasn't seen these documents, then it means he is being lazy at Cocobod, just as he failed to read the handover notes properly.
The fact remains that the banks brought an offer similar to the 2023/2024 offer. Cocobod renegotiated, the banks discounted the interest by 2%, and they changed the terms. But by then, Cocobod had already initiated their Plan B, which was no syndication. Long before issuing the RFP, the then management had started contemplating alternative sources of funding our cocoa instead of depending solely on the annual syndication of loans. leaving the funding of such a national strategic commodity in the hands of foreign institutions. Indeed, by April 2024, the new financing model was secured. Nevertheless, we still wanted to know how the banks would respond, so we kept the RFP alive.
It's important to clarify that Cocobod cannot borrow with a sovereign guarantee. Instead, Cocobod borrows using cocoa sales contracts with buyers as collateral to the banks. That's why it's crucial to sell forward (i.e., trade futures). Without enough sales contracts already in hand by February, Cocobod cannot issue an RFP. We issued the RFP in February 2024, the syndication banks responded, and we objected to their terms and conditions. While negotiations were ongoing, we went public to announce breaking away from the traditional offshore (foreign) borrowing model that had been in place from 1992 to 2024. Rightly so, we broke away to restore our national pride and dignity. The announcement curtailed any further dealings with the banks, and we did so without recourse to them. It isn't that the banks rejected Cocobod's request but rather, we rejected their offer to call their bluff.
By not going for syndication, we restored our national dignity and pride in funding our most strategic export commodity ourselves. This saved Cocobod and the nation millions of dollars that would have been paid in interest, commitment fees, and arrangement fees on loans. In the 2023 syndication, the total borrowing cost was 10.48%. Cocoa receipts for the last crop year exceeded US$3.9 billion. If Cocobod had borrowed US$3.0 billion at, say, 8% interest (final negotiated amount), the country would have forfeited US$240 million— all of which, or even more, has become savings to the nation. The new financing model is currently being used for the 2025/26 crop year, but with complete lack of knowledge and understanding by those who are in-charge of Cocobod at the moment.
If the new trading model was so bad, why didn't you pursue syndication last year? The truth is that the previous administration had sold the 2024/2025 cocoa forward at no less than $8,000 per tonne and at a very good price for you. That is why you were able to increase the farmers' price to 3,600 cedis last year in your major season for 2025/2026. You gladly announced it and took credit while demeaning the past management. When the market tide was good, you didn't give the trading team a mandate to sell the cocoa forward, even though the price had reached $13,000. You wanted spot prices, which we all know is impossible. You should have sold the 2026 cocoa and even part of the 2027 cocoa by now. Your minions, who don't understand what you have done and the damage you have caused, come to defend you by citing past debts.
Did you tell them that, as of January 2025, Cocobod had already delivered 200,000 tonnes out of the 330,000 tonnes of rollover contracts? It is a lie if you talk about 330,000 rollover contracts today.
We told you Mahama is incompetent but you people said no you will still vote for him. Lot of you Gen Z's that were kids during his first term thought the NPP was against the country 🤣🤣🤣, You all can now see how you have been scammed and fanfooled.
When it come to policies that helps the average Ghanaian the NPP has been very instrumental at it. All the NDC does always is to lie and use propaganda to win power. Anyway #abanpapaaba so let's continue suffer in peace ✌
Shalom🤝🇬🇭
Those of you on the government side of comms, you go have some long days on twitter from today onwards paaaa…
Your honeymoon days are over.
People Dey suffer and you for fix dem, no plenty talking and needless Sergio Ramos tweets.
Your tweet shld either be giving Ghanaians the results or just save your data.
We no go tolerate those needless gaslighting you guys dey do for here…
We no dey play for here anymore!!!
My next post on the CocoBod crisis would be rather long, but worth the read.
Take time to read and digest every aspect of the issues.
It’s a worrying situation
“Renaming Kotoka International Airport is useless, baseless, and a waste of taxpayers’ money. That’s not what we need.” - MP for Old Tafo, Hon. Ekow Vincent Assafuah