Breathing Life Into The Economy

Ghana’s economy has been under the microscope for the best part of the year, largely because of its poor performance.

Financial analysts as well as commentators, have assigned various reasons and offered solutions to the current challenges facing the economy.

Evidently, the government has taken various measures to put the economy back on a sound footing.

While it would appear that some of the measures are beginning to yield dividends, there remains a huge gulf between government and the opposition political parties on the management of the economy.

Despite the disagreements, the country continues to receive external financial assistance that is likely to shore up the cedi and consequently stabilise the economy.

One such major financial assistance, is the 1.7 billion dollar financial facility announced by the Ghana Cocoa Board (COCOBOD) from a consortium of 20 international banks, to support cocoa purchases in the country.

The signing of the Receivables Backed Trade Finance Facility for cocoa purchases for the 2014/15 crop season, which was said to be the largest soft commodity deal in sub-Saharan Africa, took place last Thursday, September 11, in France.

A statement from COCOBOD, announcing the deal, said “Since the 1992/1993 crop season, under the NDC government, COCOBOD has consistently and successfully obtained receivables-backed syndicated loans each year, from the money market to finance cocoa purchases and ensure farmers received prompt payment for their produce.”

It is understood that an additional 200million dollars is available on demand as part of the facility which has a 2.1per cent interest.

The announcement must certainly be a welcome news for the thousands of cocoa farmers across the country, who toil to ensure that Ghana’s cocoa production level remains high.

More importantly, it provides a favourable impression of credit rating agencies, especially looking at the huge amount raised.

In other words, the injection of the financial facility into the local economy would help to instill confidence in the operations of the government, and an assurance that the government is forward looking

We commend the management of COCOBOD for doing well to secure such a historic deal for the benefit of the farmers, and the economy in general.

The availability of such a fund that would be pumped into the economy through the farmers, would improve the liquidity situation of the economy, and support other interventions by the government to cushion the economy from external shocks.

As we commend the management of COCOBOD for this achievement, we pray that the money would be made available in good time to enable the Board to honour its payments to farmers on time.

“Ayeeko” Cocobod.

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