Absa Bank Ghana LTD and IFC have announced a $50 million unfunded risk participation facility to expand financing for Licensed Buying Companies purchasing traceable cocoa from farmers across Ghana.
The facility enables Absa Bank Ghana LTD to extend financing to selected Licensed Buying Companies during the cocoa buying season. It is expected to help sustain reliable market access for more than 139,000 smallholder farmers whose livelihoods depend on the sector.
Supported by the Private Sector Window of the Global Agriculture and Food Security Program, the facility will finance purchases of traceable cocoa from farmers across Ghana. It will also support more sustainable farming practices aligned with the Paris Agreement on climate change.
The partnership was announced at a ceremonial signing programme held at the World Bank office in Accra on September 16.
Commenting on the partnership, Managing Director of Absa Bank Ghana LTD, Edward Nartey Botchway, said: “Ghana’s cocoa sector supports thousands of farming households and anchors our export economy.
“Through this partnership with IFC, we are financing Licensed Buying Companies to purchase traceable cocoa throughout the buying season and to protect reliable market access for farmers.
“At Absa Bank Ghana, we believe in using our expertise and capital to support the people who feed our economy and build a cocoa value chain that is productive, sustainable and resilient.”
The partnership deepens Absa Bank Ghana LTD’s support for one of Ghana’s most important export sectors. It strengthens the bank’s ability to finance Licensed Buying Companies that purchase cocoa from farmers and connect production to the market.
By combining Absa Bank Ghana LTD’s local market knowledge and financing capability with IFC’s development finance expertise, the partnership will increase funding for a cocoa value chain that supports livelihoods, export earnings and economic activity across farming communities.
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