The International Finance Corporation (IFC) has stepped in to address a critical financing shortfall in Ghana’s cocoa sector, providing hundreds of millions of dollars to support licensed buying companies (LBCs) and safeguard operations for farmers.
Speaking on Channel One TV, IFC Senior Country Manager Kyle Kelhofer explained that delays in funding from COCOBOD had left LBCs under pressure, forcing them to finance operations themselves in a market already under strain.
“Well, the big thing that we’ve been trying to support over the last 18 months, because there’s been a bit of a financing gap with the cocoa board…and the LBC supply chain has had to self-finance,” Kelhofer said.
To stabilise the industry, the IFC has collaborated with local banks, regulators, the Bank of Ghana, and the Ministry of Finance to channel funding in local currency, ensuring liquidity reaches key actors in the supply chain.
“We’ve tried to step in, including with some support from the regulators, the central bank and the Ministry of Finance. We’ve tried to step in to help the LBCs have sufficient liquidity, but local currency liquidity, hence via local banks,” he noted.
The IFC has already committed more than $100 million, with potential support rising to $300 million this year.
“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,” Kelhofer added.
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