I’ll abolish cocoa syndicated loan scheme - Alan Kyerematen pledges

Independent Presidential candidate, Alan Kyerematen, has promised to abolish the longstanding cocoa syndicated loan scheme when given the nod as president on December 7.

He explained that this system, which the country relied on in borrowing dollars to pay farmers in cedis, had directly harmed farmers due to currency depreciation.

“The current system forces the government to borrow about $2 billion annually under the guise of helping cocoa farmers, yet pays them in cedis. This discrepancy shortchanges farmers as our currency loses value, causing their earnings to be used to service growing debts,” he said.

Mr Kyerematen, who is the leader of the Movement for Change (M4C), made the promise when he addressed chiefs and local communities in the Ahafo Region, a cocoa growing area, during his Caravan Campaign Tour.

He condemned the current and previous administrations for exploiting cocoa farmers, accusing both the New Patriotic Party (NPP) and the National Democratic Congress (NDC) of consistently “cheating farmers out of their rightful income.”

Cocoa purchases

To replace what he called the flawed system, Mr Kyerematen outlined an innovative approach: borrowing locally in cedis to finance cocoa purchases.

“By financing our cocoa purchases with local cedi-denominated funds, we will ensure that when our cocoa is sold internationally, both the country and farmers gain full value. No more will our farmers’ hard work serve only to pay off foreign loans,” he gave an assurance.

Pointing to the current global price of cocoa, which stood at a record $7,960 per tonne, Mr Kyerematen criticised the government’s failure to translate those high prices into fair earnings for Ghanaian farmers.

“With prices this high, it’s unforgivable that our farmers still struggle with inadequate compensation. The government is not paying them nearly what they deserve,” he stated, adding that his administration would prioritise value addition to cocoa exports.

Transformation

Under his Great Transformational Plan, Mr Kyerematen pledged to process at least 70 per cent of the country’s cocoa locally, converting raw cocoa into finished products such as chocolate to increase revenue.

“The real value of cocoa lies in what we create from it. If we export finished products, our farmers will finally see the prosperity they deserve,” he explained, emphasising that Ghana’s status as the world’s second-largest cocoa producer should be leveraged for greater economic gains.

Another key area he addressed was cocoa pollination. He noted that the current pollination costs were a barrier for most farmers, which has reduced yields significantly.

“Our cocoa farmers deserve access to free pollination services to boost their yield. Under my leadership, pollination will be free, allowing farmers to cultivate and harvest more efficiently,” he promised.

Private sector

Mr Kyerematen also laid out plans to deepen private sector participation in the cocoa sector, including offloading shares of COCOBOD on the Ghana Stock Exchange.
 

He proposed a share option scheme that would give farmers a stake in the cocoa market, empowering them to reap greater financial rewards from their hard work.

“It is time for our farmers to have ownership in the industry they sustain,” he declared.