IFC partners with Societe Generale Ghana to boost cocoa sector financing, sustainability 

GHANA – The International Finance Corporation (IFC) has partnered with Societe Generale Ghana Plc (SG Ghana) to improve access to finance in Ghana’s cocoa sector, strengthen sustainability, and enhance market access for tens of thousands of smallholder farmers. 

As part of the agreement, IFC will provide a local currency loan of up to US$40 million equivalent through an unfunded risk-sharing facility.

The initiative is expected to unlock up to US$80 million in financing for licensed buying companies (LBCs), enabling them to purchase cocoa beans directly from farmers. 

Beyond the financing component, the partnership will also include advisory support and capacity-building programs aimed at improving traceability, fostering sustainable sourcing, and addressing environmental concerns such as deforestation in the cocoa value chain. 

The collaboration is projected to facilitate up to US$320 million in cocoa trade over the next four years, benefiting an estimated 75,000 smallholder farmers.  

Farmers are expected to gain improved access to finance, farming inputs, and technical support, thereby enhancing productivity and resilience across the sector. 

Ghana’s cocoa industry remains a critical contributor to the national economy, accounting for approximately 6% of GDP and supporting the livelihoods of about 30% of the rural population.  

However, the sector continues to grapple with several structural challenges, particularly limited access to affordable finance and declining productivity. 

“This partnership underscores IFC’s recognition of SG Ghana’s commitment to financing the real economy of Ghana and cocoa in particular,” said Hakim Ouzzani, Managing Director of Societe Generale Ghana.  

“It is also a testament to the long-standing relationship between Ghana Cocobod and Societe Generale as a Group.” 

Kyle Kelhofer, IFC Senior Country Manager for Ghana, added: “Access to finance is a challenge for stakeholders in Ghana’s cocoa sector. This partnership with Societe Generale will help improve access to finance in the cocoa value chain, support smallholder farmers, and promote more sustainable production practices.” 

The initiative also supports the procurement of Rainforest Alliance certified cocoa, thereby aligning with broader environmental and sustainability goals. 

IFC and SG Ghana have collaborated since 2020, with IFC providing around $75 million in local currency loans to support the bank’s SME lending operations. 

The funding comes as Ghana’s Cocoa Board (COCOBOD) faces mounting financial challenges. Acting CEO Randy Abbey recently revealed that the organization’s debt stands at approximately GH₵33 billion, with over US$400 million owed to agrochemical suppliers. 

Abbey cited ongoing creditor pressure and legal threats as significant hurdles to operational stability. 

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