IFC and Absa Bank Ghana announce $50m facility for cocoa purchases — MyJoyOnline

In Ghana, Absa Bank Ghana LTD and the International Finance Corporation (IFC) have announced a $50 million unfunded risk participation facility. It is intended to expand financing for selected licensed buying companies that purchase traceable cocoa from farmers, MyJoyOnline reports.

Financing for the purchasing season

The facility will enable Absa Bank Ghana LTD to provide financing to selected licensed buying companies during the cocoa purchasing season. It is expected to help maintain stable market access for more than 139,000 smallholder farmers whose livelihoods depend on the industry.

The facility is supported through the Private Sector Window of the Global Agriculture and Food Security Program. It is intended to finance purchases of traceable cocoa from farmers across Ghana and support more sustainable farming practices in line with the Paris Climate Agreement.

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Signing in Accra

The partnership was announced on September 16 during a signing ceremony at the World Bank office in Accra. Absa Bank Ghana LTD Managing Director Edward Narty Botchway said that cooperation with IFC would help finance buying companies throughout the season and support farmers’ reliable access to the market.

According to him, the bank seeks to develop a productive, sustainable and resilient cocoa value chain. The partnership combines Absa Bank Ghana LTD’s local market knowledge and financial capacity with IFC’s experience in development finance.