World Bank Affiliate Injects US$300 Million into Cocoa Sector

The International Finance Corporation (IFC), in collaboration with the Bank of Ghana and Ministry of Finance, is injecting significant financing into Ghana’s cocoa sector to address liquidity challenges facing Licensed Buying Companies (LBCs). The IFC has already provided over US$100 million, with total support for the year potentially reaching US$300 million. This intervention responds to delays in expected Ghana Cocoa Board (COCOBOD) funding, which have forced LBCs to use their own resources to purchase cocoa beans from farmers, creating stress within the supply chain and risking market disruptions. IFC Senior Country Manager Kyle Kelhofer highlighted that the funding is being channelled through local banks and with regulatory support to ensure LBCs continue operations without interruption. The coordinated effort aims to maintain the viability of the entire cocoa supply chain and reassure farmers that their beans will be purchased at fair and competitive prices at the farm gate. By stabilizing financing, the IFC support offers a critical lifeline to Ghana’s cocoa industry and its hundreds of thousands of farmers.