- Ghana Partners Chinese Company to Build Cocoa Processing Factory
Ghana, the world’s second-largest producer of cocoa, has partnered China General Technology Holding (Genertec) to build a cocoa processing factory.
The project will be managed by the Ghana Cocoa Board (COCOBOD) and Genertec in a Public-Private Partnership (PPP). While the China International Development Operating Agency will handle the construction using funds provided by the China Development Bank (CDB) and Sino-African Fund.
Joseph Aidoo, the Chief Executive, COCOBOD, stated that the new processing factory will boost the Ghanaian economy and enhance business activities in the Sefwi-Wiawso area, the city where the plant will be located.
Aidoo also noted that the project will open up access to over a billion Chinese market and foster a cordial business relationship between the two nations.
Earlier this year, COCOBOD and Cote d’Ivoire, two of the world’s largest producers, had complained about the poor living condition of Cocoa farmers in villages while capitalist investors keep most of the $100 billion of the current valuation of the industry.
According to experts, only $6 billion goes to cocoa producers, the powerhouse of the whole value chain.
“The fact that the majority of farmers are unable to cater adequately for their family, beyond mere poverty existence, is simply unconscionable. It is startling to learn from the president of the World Cocoa Foundation that only six percent of the total value of chocolate goes to farmers. The percentage may be lower in the case of cosmetics and pharmaceutical end uses,” said Ghana’s Vice President, Dr Mahamudu Bawumia.
Processing more cocoa beans locally will help Ghana increase its share of global earnings from cocoa industry through value addition.
Again, while Ghana produces 880,000 tonnes of cocoa annually, only 300,000 tonnes are produced locally. Therefore, if Ghana wants to increase revenue generation more local processing factories are imperative to both job creation and revenue generation.
“It is a matter of taking a bigger part of the global value chain, worth over USD$100 billion annually,” Aidoo said. Through increased processing, Ghana can also protect itself from fluctuations of cocoa prices worldwide.
This is not the first partnership between COCOBOD and Chinese companies as COCOBOD recently signed a $1.3 billion cocoa syndicated loan agreement with Chinese-based companies. A loan that will help COCOBOD purchase cocoa beans from local farmers during the 2019/2020.
Zhou Mingchun, Vice President of Genertec, said: “We regard Ghana as the regional hub.”
“We believe that our portfolio in Ghana is not yet enough, so, basically we are looking forward to expanding our investment here in Ghana and that is why we are here today.”
Without stating the capacity of the new project, COCOBOD said the project will kick off “once the comprehensive feasibility studies are completed.”
