Ghana’s Cocobod has obtained a $200 million loan from the World Bank in a bid to counter the devastating impact of the cocoa swollen shoot virus.
The funds will primarily be directed towards the restoration of plantations ravaged by the viral outbreak, a move aimed at revitalizing cocoa production in the West African nation.
The announcement was made by Cocobod’s deputy CEO in charge of operations, highlighting the urgent need to address the widespread destruction caused by the disease.
With approximately 500,000 hectares of farmland already affected, Ghana’s cocoa output witnessed a significant decline, dampening its position as the world’s second-largest cocoa producer.
Last year, Ghana’s cocoa production plummeted to 600,000 metric tons, marking a stark contrast to the peak of 1.048 million tons recorded in the 2020/21 season.
Factors contributing to this decline include not only the cocoa swollen shoot virus but also issues such as aging plantations, illegal mining, and smuggling activities.
A substantial portion of the loan, amounting to $132.8 million, will be allocated to Cocobod’s farm rehabilitation efforts, complemented by counterpart funding. These initiatives aim not only to restore affected farms but also to bolster knowledge and understanding of the virus strains, crucial for long-term sustainability.
Emmanuel Opoku, a representative from Cocobod, emphasized the extensive timeframe required for rehabilitation efforts, estimating a minimum of five years before economic production can be realized. He cited challenges stemming from Ghana’s economic crisis and limited financial resources as hindrances to swift action.
Under the rehabilitation program, Cocobod plans to assume control of disease-infested farms, undertaking the task of cutting and replacing sick cocoa trees. These efforts will be supplemented by initiatives to foster growth until the trees reach a fruiting stage, after which they will be returned to farmers.
While previous attempts, such as the utilization of a $600 million loan from the African Development Bank (AfDB) in 2018, have seen some success in rejuvenating plantations, challenges persist. Mr. Opoku noted that the economic turmoil experienced during the period hindered the program’s effectiveness, despite benefiting over 88,000 hectares of farmland.
Alhassan Bukari, president of Ghana’s Cocoa, Coffee, and Sheanut Farmers’ Association, echoed the need for aggressive rehabilitation efforts, stressing the widespread impact on farmers across the nation.
The urgency of the situation is further underscored by a 35% decline in graded and sealed cocoa arrivals since the start of the season, attributed to both environmental factors and production challenges.