Ghana's Cocobod will utilize a portion of a $200 million World Bank loan to rehabilitate plantations devastated by the cocoa swollen shoot virus, a disease-causing drops in yields and tree fatalities, stated the regulator's deputy CEO in charge of operations on Thursday.
The virus has decimated approximately 500,000 hectares of farmlands and diminished cocoa output from the West African nation, the world's second-biggest cocoa producer after its neighbour Ivory Coast.
Ghana's cocoa output plummeted to 600,000 metric tons last year after reaching a peak of 1.048 million tons in the 2020/21 season, attributed to the cocoa swollen shoot virus, ageing plantations, illegal mining, and smuggling taking a toll on the sector.
A total of $132.8 million from the loan secured by the government last year, alongside counterpart funding, will finance Cocobod's farm rehabilitation efforts and support the enhancement of knowledge on the virus strains, as indicated in a project information document.
“The rehabilitation will take a minimum of five years to start getting economic production,” revealed Cocobod's Emmanuel Opoku to Reuters, noting that efforts had been hindered by the country's economic crisis and the board's limited funds.
The board will assume control of disease-infested farms, cut and replace diseased cocoa trees, nurturing their growth to a fruiting stage before returning them to farmers.
In 2018, Cocobod utilized a portion of a $600 million Africa Development Bank (AfDB) loan to revitalize ageing plantations and those affected by the disease. However, the program, originally intended to cover 156,000 hectares of plantations, was affected by Ghana's severe economic crisis, during which inflation soared and the cedi currency depreciated sharply, according to Opoku.
He stated that the AfDB facility benefited more than 88,000 hectares of farmlands, with 40,000 hectares set to be returned to farmers in “the coming days.”
Alhassan Bukari, president of the country's Cocoa, Coffee, and Sheanut Farmers' Association, emphasized to Reuters that rehabilitation efforts needed to be aggressive, given the significant impact on many farmers.