Ghana is actively pursuing a $500 million loan from major cocoa traders to support its cocoa industry, as delays in securing its usual financing arrangements continue to pose challenges.
Sources from Citi Business News reveal that the Ghana Cocoa Board (COCOBOD) is in discussions with key cocoa traders, including Olam Group and Barry Callebaut, to raise part of the $1.5 billion needed to finance operations ahead of the upcoming cocoa season in October.
This $500 million loan is intended as a temporary measure while COCOBOD struggles to finalize its annual syndicated loan, a process currently delayed by concerns over crop yields.
This situation marks the second consecutive year that Ghana, the world’s second-largest cocoa producer, has had to rely on traders for interim funding.
The loan is vital for COCOBOD, as it is used to purchase cocoa beans from farmers, pay for fertilizers, chemicals, and seedlings, and help stabilise the nation’s currency.
However, lenders have expressed hesitancy due to a significant decline in cocoa production. This year, Ghana’s cocoa output is projected to drop to just over 500,000 tons, a steep decrease from the usual 800,000 tons.
The decline is attributed to unfavourable weather conditions, disease outbreaks, and fertilizer shortages.
In response to these challenges, COCOBOD is planning to start the cocoa season a month earlier in September to curb smuggling and allow time for the introduction of a new tracking system.
This system is designed to ensure that all cocoa beans are traced from the farm to the warehouse, in compliance with the European Union’s deforestation regulations.
Efforts to obtain comments from the cocoa traders and COCOBOD regarding the ongoing negotiations have so far been unsuccessful.
Farmers in the Oti Region are facing devastating losses due to an unrelenting dry spell that has left their fields parched and their crop yields in jeopardy.
The lack of rainfall has not only endangered their livelihoods but also posed a serious threat to food security in the area.
Adom News correspondent Obrempongba Owusu visited several farms in the region, where the impact of the prolonged drought was painfully evident.
The majority of farmers in Oti rely on rain-fed agriculture, cultivating staple crops such as maize, rice, groundnut, millet, beans, cassava, and yams.
The dry spell has led to wilting crops and significantly reduced harvests, forcing many farmers to abandon their fields altogether.
Even educational institutions have not been spared as Nkwanta Senior High School lost five acres of its maize farm due to the persistent dry conditions.
The school’s agricultural department, led by Lawrence Antwi, aimed to provide students with hands-on farming experience, but the lack of rain has withered the maize crop, a staple food, and vital resource for the school.
Farmers in the region expressed their frustration and despair as they watched their crops wither and their hopes dwindle. They explained that the absence of rainfall from July to August has left their fields barren, casting uncertainty over their future as they depend entirely on rain-fed agriculture.
As the situation worsens, farmers are urgently calling for intervention from the government and agricultural organizations to help mitigate the impact of the drought.
The Chief Agriculture Technical Officer in Nkwanta South, Stephen Darko, has also raised significant concerns regarding the ongoing dry spell. He warned that the government’s Planting for Food and Jobs (PFJ II) initiative may struggle to meet its targets if the current weather conditions persist.
Darko emphasized the need for immediate government action to support farmers and safeguard food production in the region.
The Executive Director of the Peasant Farmers Association of Ghana (PFAG), Bismark Owusu Nortey, stated in a Press conference today, August 15, 2024, that Phase Two of the Planting for Food and Jobs program (PFJ 2.0) is being taken over by politicians, who are now using it as a means of seeking political power.
The Executive Director claims that instead of providing input seeds and fertilizers to aggregators and the District Department of Agriculture for distribution to farmers, these supplies are now being given to the parliamentary candidates and the District Chief Executives (DCEs) for distribution.
He noted that the strategy originally designed for selecting beneficiaries and distributing fertilizers and seeds did not involve politicians. “No part of the strategy mentioned grants or the involvement of politically exposed persons in the selection of beneficiary farmers and distribution of fertilizers and seeds”.
Bismark Owusu Nortey, the Executive Director of the Peasant Farmers Association of Ghana (PFAG), explaining the farmers’ frustrations.
He further highlighted that the input distribution formula under the grant component of PFJ 2.0 has become an avenue for some unscrupulous public officials and politicians to demand payments from farmers before they can benefit.
“What is the role of the DCEs and the Parliamentary Candidates in input distribution? Are they replacing the work of aggregators and the district agriculture department and which criteria are they using to distribute the fertilizers? Would the beneficiaries pay back, if they will, who are they paying to? If they are not paying back, why must it be the role of politicians to be involved in inputs distribution?” The Executive Director quizzed, which he believes these questions need to be addressed by the Ministry of Agriculture.
He also stated that in the midst of the planting season, none of the supporting services that the farmers are supposed to receive from the government under Planting for Food and Jobs Phase Two have been comprehensively provided.
“In fact, the Bryan Acheampong PFJ 2.0 is no different from the Owusu Afriyie Akoto PFJ 1.0, as both are primarily about the supply of fertilizers and seeds,” the Executive Director asserted.
Bismark Owusu Nortey recalled the launch of PFJ 2.0, where the Minister of Agriculture, Bryan Acheampong, told the farmers to anticipate comprehensive input and service support across the value chain and that the only thing the farmers needed was land.
“This implied that the Ministry was going to facilitate land preparation services, mechanization, extension, harvesting and marketing services, in addition to all input support, including seeds, fertilizers and agrochemicals,” He highlighted.
Bismark Owusu Nortey urged Ghanaians to brace themselves as food prices may rise if the necessary steps are not taken.
PFAG, therefore, calls on Parliament to summon the Minister of Food and Agriculture to address these concerns.
Hectares of maize and other cereal cultivations in the Northern sector of the country are currently being destroyed by drought, leaving farmers scrambling for solutions to save their livelihoods.
B&FT sources indicate that arid conditions in the Northern belt are currently worse in the maize fields of the Sissala district in the Upper West and many parts of the Northern Region, where hundreds of hectares of farmland have been desiccated and destroyed by the ongoing heatwave.
Since June of this year, the state of maize farms in the Northern Region—possibly the worst in the last decade—has left many farmers shocked as they scramble to find makeshift solutions to salvage the situation.
According to stakeholders, the situation could have been improved if irrigation and mechanized farming had been prioritized as key drivers of the country’s food production agenda.
Certainly, the country has 104 central pivot irrigation systems – each covering a minimum of 40 acres. As it stands, 98 percent of these systems and facilities are non-functional.
In the last decade, the World Bank has committed more than US$200million in loans and grants to meet Ghana’s climate smart agriculture needs.
A significant portion of these funds was intended to revitalise abandoned irrigation schemes across the country, but some stakeholders believe the money has been squandered.
Indeed, an alarming US$11.9million was spent on mobilisation to kick-start construction of the US$99 million Pwalugu Multipurpose Dam… only for the project to fail.
The World Bank estimates between 360,000 and 1.9 million hectares of the country’s agricultural land could be irrigated, yet less than three percent of cultivated land in Ghana benefits from irrigation.
Middle belt emergencies
Similarly, dry weather conditions in the Bono, Bono East and Ahafo Regions have put the middle belt agriculture zone in a severe emergency.
A veterinary technologist in Atebubu in the Amantin Municipal District of the Bono East Region, Philip Kwablah Deku, told B&FT that key farming communities, including Atebubu in the Bono East Region, are currently plagued with fall army worms and black insect invasion which are feeding on crops as a result of the severe dry weather.
The situation, he said, has skyrocketed the price of key commodities in the area, including soy, maize among others.
For example, a 100kg bag of cowpea that was sold for GHc1700 in March and April this year currently sells at GH¢2800 due to destruction of crops by these insects, as farmers desire to profit from the few harvests they could salvage.
Position of Agribusiness Chamber, Ghana
These instances, according to the Chamber of Agribusiness Ghana (CAG), underscore the country’s inertia and ineptitude leading to disappointments that should not come as surprises.
CEO of CAG, Selorm Morrison, said these current happenings deepen the country’s food insecurity and will further deplete incomes of poor farming households.
He argued that it is imperative for government to set up a National Agriculture Risk Management Coordination Centre to deploy early warnings on diseases, rainfall patterns, risks and other challenges to guide farmers in cultivation.
“Making farmers aware of the dangers ahead in terms of looming heatwaves, rainfall patterns will guide in making verifiable decisions to plant or hold on until it is safe to do so. As it stands, there is no such mitigation and risk procedure by the state,” Mr. Morrison said.
The Chamber also suggested that technocrats be put in charge of agriculture management and in advisory roles, instead of politicians with little expertise in the sector.
Once the world’s leading cocoa producer, Ghana has seen its cocoa industry face significant challenges, culminating in a dramatic decline in recent years.
The country lost its premier position to neighboring Côte d’Ivoire in 1978, when cocoa production plummeted to 159,000 tons, capturing just 17% of the global market share.
Although Ghana’s cocoa sector showed signs of recovery in the late 1980s and early 1990s, with production steadily increasing to over 900,000 tons by 2010, the situation has deteriorated sharply over the past few years.
By 2021, the industry was a vital part of Ghana’s economy, contributing over GHS 3.1 billion, equivalent to $533 million, in revenue.
However, the 2022 crop season marked the beginning of a worrying decline, with production dropping from 1 million tons in the previous year to 683,000 tons—a staggering 32% decrease.
The downward trend continued in the 2022/23 season, with production falling to 654,000 tons, a further 4.2% reduction. Alarmingly, the 2023/24 season saw figures drop to 580,000 tons, an 11.3% decrease.
The severity of the situation was underscored in 2023 when Ghana had to import cocoa beans worth 185.2 million cedis from Côte d’Ivoire, highlighting the critical state of the nation’s cocoa production.
The primary driver of this crisis is illegal mining, known locally as “galamsey,” which has devastated large swathes of cocoa farmland. Over 19,000 hectares of cocoa farms have been lost to these illegal operations. Since 2020, cocoa farmers in Ghana have experienced an average 16% decline in their incomes, leading many to lease their farms to galamsey operators in search of more immediate financial relief.
Even though the government has increased the producer price of cocoa by 58.26%—from GH¢20,928 per tonne to GH¢33,120 per tonne—experts believe that more incentives are necessary to discourage farmers from abandoning their cocoa farms.
The situation is further exacerbated by rampant smuggling. In 2022, Ghana lost 150,000 metric tonnes of cocoa beans to neighboring countries through smuggling, resulting in an estimated $600 million in lost revenue.
As the 2024 elections approach, there is growing concern about the future of Ghana’s cocoa industry. Despite the severity of the crisis, major political parties have yet to present a detailed plan to address these pressing challenges. While some promises have been made, a comprehensive strategy to revive the sector remains elusive.
The future of Ghana’s cocoa industry now hangs in the balance. With further declines projected, urgent and decisive action is needed to address the critical issues plaguing the sector.
The choices made today, and the policies implemented by the next administration, will determine whether Ghana’s cocoa industry can recover or continue its alarming decline.
The nation’s pride in its cocoa legacy depends on the decisions and actions taken in the coming years, and only time will tell if the industry can be saved.
The United Nations (UN) is an international organization founded in 1945, after World War II, to promote peace, security, and cooperation among countries. It currently has 193 member states and operates through various specialized agencies, programs, and bodies that address a wide range of global issues such as human rights, humanitarian aid, sustainable development, and international law. The UN’s primary objectives include maintaining international peace and security, promoting sustainable development, protecting human rights, fostering social progress and better living standards for all people. The organization plays a crucial role in mediating conflicts, providing humanitarian assistance during crises, and coordinating international efforts to tackle global challenges like climate change.
The United Nations (UN) offers a wide range of career opportunities across various fields, including peacekeeping, humanitarian assistance, human rights, and sustainable development. Working for the UN can be a fulfilling experience as it allows individuals to contribute to global peace and security while promoting social progress and better living standards.
Open Job Vacancies at the United Nations
The UN regularly posts job vacancies on its official website and through various specialized agencies. These positions are categorized into different levels based on qualifications and experience:
Professional Positions: These roles typically require advanced degrees and relevant work experience. They cover areas such as policy analysis, project management, legal affairs, and communications.
General Service Positions: These jobs usually require secondary education or vocational training. They include administrative support roles, clerical positions, and technical support.
Field Service Positions: These are often related to peacekeeping missions or humanitarian operations in various countries. They may require specific skills related to logistics, security, or health services.
Internships: The UN also offers internship programs for students and recent graduates looking to gain practical experience in international relations and development work.
To find current job openings at the UN, candidates can visit the UN Careers website. This platform provides a comprehensive list of available positions across different departments and agencies within the UN system.
How to Apply for Jobs at the United Nations
Applying for a job at the UN involves several steps:
Create an Account: Candidates must first create an account on the UN Careers portal ( Inspira). This account will allow applicants to submit their applications online and track their status.
Search for Vacancies: Once registered, candidates can search for job vacancies using filters such as job category, level, location, or agency.
Submit Application: After selecting a position of interest, candidates can complete their application by filling out necessary forms and uploading required documents.
Assessment Process: The selection process may include assessments such as written tests or competency-based interviews depending on the position applied for.
Follow Up: After submission, applicants can monitor their application status through their accounts on the UN Careers portal.
The Agribusiness Challenge Fund is a rolling call for proposals open from 18 March 2024 to 22 November 2024, with three application harvest periods in between. The challenge is open to SME applications from any country as long as the projects meet the eligibility criteria and are being implemented in at least one of the 20 focus countries the Fund is targeting.
Support from the Fund includes grants ranging from US$ 500,000 to US$ 2,500,000, disbursed over a three-year period, based on the applicant’s development stage, scalability, and business model, in accordance with agreed periodic milestone targets. The funding structure will be determined on a case-by-case basis after evaluating proposals and organizations. Additional support to successful applicants will include tailored technical assistance in alignment with the Fund objectives over the three-year period.
CATEGORIES OF INTEREST IN THE AGRIBUSINESS CHALLENGE
Primary production
Processing and aggregation
Trading and market linkages
CATEGORIES OF INTEREST WITHIN THE AGRICULTURE VALUE CHAIN
While broadly interested in any agribusiness opportunity that is capable of work creation opportunities for young women and men, those working in these or other parts of the agriculture value chain are encouraged to apply:
Food storage and preservationFarmer training on adaptation techniquesCrop insurance servicesSmart irrigation systemsDrip irrigationSoil moisture sensorsOrganic fertilizersBioenergy production and fossil fuelsSolar powered agricultural toolsCapacity building
Applicants will be requested to also state and describe if they have integrated climate adaptation, climate mitigation or digital aspects to their projects.
ELIGIBILITY CRITERIA:
To be eligible to apply, an SME must:
Be involved in the sector of focus i.e. agriculture.
Be an existing for-profit Small or Medium-sized Enterprise.
Be implementing business in at least one of the 20 focus countries in Africa.
Be requesting for grant funding ranging from US$ 500,000 to US$ 2,500,000, disbursed over a three-year period, based on applicants’ development stage, scalability, and business model. Additional tailored technical assistance will be provided to successful applicants.
Be providing matching contribution of at least 30% of the total project cost.
Have innovative, practical, and scalable businesses that aim to create work opportunities for young women and men, young people with disabilities or refugee youth.
Adhere to fundamental human rights, labour standards, and environmental management laws, both nationally and internationally, including seed laws/policy.
Refrain from any involvement in acts of terrorism or support for terrorist activities.
SELECTION CRITERIA
Applications in the Agribusiness Challenge Fund will be selected based on the following criteria:
Project description and objective
Alignment with Fund for Resilience and Prosperity priorities
The United Nations World Food Programme is the world’s largest humanitarian agency fighting hunger worldwide. The mission of WFP is to help the world achieve Zero Hunger in our lifetimes. Every day, WFP works worldwide to ensure that no child goes to bed hungry and that the poorest and most vulnerable, particularly women and children, can access the nutritious food they need.
Management Services Assistant-Asset Management G4
The role of a Management Services Assistant in Asset Management at the G4 level is pivotal within any organization. This position is responsible for the efficient administration and management of assets, ensuring that all resources are utilized effectively and sustainably. The primary duties include tracking and recording assets, conducting regular audits, and maintaining accurate inventory records. This role requires meticulous attention to detail, strong organizational skills, and the ability to manage multiple tasks simultaneously. A successful candidate will have a comprehensive understanding of asset management principles, excellent problem-solving abilities, and proficiency in relevant software and tools. The position is essential for maintaining the integrity of an organization’s asset portfolio and ensuring that assets are available and in optimal condition when needed.
Supply Chain Associate – Commodity Accounting
The Supply Chain Associate specializing in Commodity Accounting plays a crucial role in managing the financial aspects of the supply chain, particularly concerning commodities. This role involves tracking and reporting on the financial transactions related to the procurement, storage, and distribution of commodities. Key responsibilities include ensuring accurate accounting records, analyzing cost data, preparing financial reports, and supporting budget management. The ideal candidate will have strong analytical skills, proficiency in accounting software, and a thorough understanding of supply chain processes. Attention to detail, accuracy, and the ability to work under pressure are essential qualities for this role. By maintaining precise financial records and providing insightful analyses, the Supply Chain Associate ensures that the supply chain operates efficiently and cost-effectively.
Programme Associate – Relief, Transition, and Resilience (G6)
A Programme Associate at the G6 level focusing on Relief, Transition, and Resilience is integral to the successful implementation of humanitarian and development programs. This role involves supporting program planning, implementation, monitoring, and evaluation. Responsibilities include coordinating with various stakeholders, managing program data, and ensuring compliance with organizational and donor requirements. The position demands strong project management skills, excellent communication abilities, and a deep understanding of humanitarian principles. The Programme Associate must be adept at handling complex logistical challenges and capable of working in dynamic and often challenging environments. By ensuring the smooth execution of programs, the Programme Associate plays a critical role in achieving the organization’s objectives in providing relief, facilitating transitions, and building resilience in vulnerable communities.
Supply Chain Officer – CST II
The Supply Chain Officer at the CST II level is a senior role responsible for overseeing and optimizing the entire supply chain process within an organization. This includes procurement, logistics, inventory management, and distribution. The role requires strategic planning, coordination with various departments, and ensuring that supply chain operations align with organizational goals. Key responsibilities include developing and implementing supply chain strategies, managing supplier relationships, optimizing processes to reduce costs, and improving efficiency. A successful candidate will have extensive experience in supply chain management, strong leadership skills, and the ability to drive continuous improvement initiatives. Proficiency in supply chain management software and tools, excellent analytical skills, and a strategic mindset are essential for this role. The Supply Chain Officer ensures that the organization’s supply chain operations are robust, efficient, and capable of meeting the demands of the business.
The 2023 Auditor General Report has urged the Bank of Ghana to recover GH¢8.241 billion owed by the Ghana Cocoa Board (COCOBOD).
According to the report, COCOBOD has consistently defaulted on loan facilities granted by the Bank of Ghana, and as of December 31, 2022, COCOBOD had an outstanding principal amount of GH¢8.241 billion.
It advised the Central Bank to institute policies to address its exposure to quasi-government institutions and ensure clear repayment plans are in place when loans fall due.
Meanwhile, the Auditor General is urging the Bank of Ghana to ensure that a formal agreement on the “Gold Purchase Programme” and sale transactions are concluded with the Precious Mineral Marketing Company (PMMC).
The Central Bank engaged PMMC to purchase and sell gold on its behalf.
The Auditor General said it was, however, not provided with a formal agreement between the Central Bank and PMMC for these transactions.
“As a result, we could not confirm salient terms of the engagement including fees or commissions paid to PMMC for their services. Transactional relationships of this nature must be formalized with an agreement”, it stated.
Cocoa production will not exceed 500,000 metric tonnes in the 2023/2024 crop season due to the swollen-shoot disease, the World Bank has disclosed in its 8th Ghana Economic Update.
In the 2022/2023 crop season, cocoa production fell to around 670,000 tons last season.
The World Bank said the price surged from $2.39 per kilogram in 2022 to a record high of $5.56 per kilogramme in February 2024, the rollover of the presale contracts for the unmet volume over the past two seasons makes it challenging for COCOBOD to pre-sell production for future seasons.
Moreover, COCOBOD has accumulated large losses in the past years due to the high rollover cost of outstanding cocoa bills, high operational costs, fertilizer provision, and rural roads development.
Ghana registered a record over one million metric tonnes of cocoa production in the 2020/2021 crop season.
Meanwhile, Reuters earlier reported that Ghanaian cocoa farmers expect a boost in the 2024/2025 season starting in October 2024 after a sharp fall in production this season contributed to boosting global cocoa prices to record levels.
Ghana’s poorest harvests in a decade this season is attributed to harsh weather conditions resulting from El Nino, rampant smuggling and swollen shoot disease.
An increase in production would not only help Ghana’s finances, but also the global chocolate industry that has been grappling with tight supply.
