COCOBOD 'chases' UBA Ghana for refusing to pay $4.33m in pledged 2022 cocoa purchases

The Ghana Cocoa Board (COCOBOD) is said to be lacing up its boots to go after UBA Ghana over its refusal to pay an amount of $4.33 million it promised for cocoa purchases in 2022.

According to Vice President of policy think-tank IMANI Africa, Bright Simons, COCOBOD’s management indicates that they had already finalized the annual loan agreement when UBA Ghana showed up at the last minutes and made an offer.

“6 months down the line they hadn't paid,” Bright Simons wrote via X on December 12, 2023, while sharing a Fitch ratings verdict of the bank issued on September 15, 2023.

“Cocobod management says they have told their lawyers to force UBA to cough up the cash or take them to Court for damages. UBA management have been tight-lipped about what they saw in Cocobod's books that spooked them or whether their group level went hard on them on their risk exposures,” he added.

Meanwhile, COCOBOD, which has been struggling to honor its debt obligations, has signed the most expensive loan ever for cocoa purchases at the highest interest rate on record.

Some international banks have since pledged to lend Ghana Cocoa Board about $800 million for cocoa purchase from farmers at almost 8 percent.

Industry watchers have occasionally argued why COCOBOD keeps securing loans for cocoa purchase despite Ghana being a major contributor to global cocoa production and export.

See Bright Simons' tweet below:

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Cocobod is lacing its boots to go chase UBA Bank for refusing to pay $4.33m it promised in 2022 for cocoa purchases. Cocobod mgmt says they had already finalised the annual loan deal when UBA showed up & made the offer. 6 mths down the line they hadn't paid. pic.twitter.com/S74ObVsfZH

— Bright Simons (@BBSimons) December 12, 2023

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Cocobod mgmt says they have told their lawyers to force UBA to cough up the cash or take them to Court for damages. UBA mgmt have been tight-lipped about what they saw in Cocobod's books that spooked them or whether their group level went hard on them on their risk exposures. pic.twitter.com/BajTf1CawL

— Bright Simons (@BBSimons) December 12, 2023