Dr. Samuel Ofosu-Ampofo, Board Chairman of the Ghana Cocoa Board (COCOBOD), says the appreciation of the cedi, while beneficial for Ghana’s economy, is weighing heavily on the Board’s export earnings.
Speaking to GHOne News, Dr. Ofosu-Ampofo explained that the stronger cedi reduces the local currency value of proceeds from cocoa sales, which are denominated in dollars.
This, he noted, affects payments to farmers, servicing loans, and sustaining operations across the cocoa value chain.
“The rising cedi has its own ramifications on COCOBOD because we sell our cocoa beans in dollars. We convert it into cedis to pay workers, suppliers, and purchase insecticides, agrochemicals, and fertilizers,” he said.
He highlighted government support to mitigate the impact on farmers, noting that President Mahama directed COCOBOD to supply agrochemicals and fertilizers free of charge.
“For this year, about GHS 5.8 billion has been invested to purchase agrochemicals for free distribution to farmers,” he added.
Dr. Ofosu-Ampofo illustrated the effect of currency appreciation, “Last December, the dollar was around 16–17 cedis. If you sell cocoa at $2,100, multiplying by 17 gives more cedis to cover expenses. Today, with the dollar at 10.5–11 cedis, the same quantity yields much less. So, even though the cedi appreciation is good for the economy, it has its own ramifications for an export-oriented business like COCOBOD.”
He appealed to farmers to continue supporting government efforts to transform the sector despite these challenges.
Source: Starrfm.com.gh
