IFC and SG Ghana Launch $80M Cocoa Financing Initiative to Aid 75,000 Farmers

SG Ghana will leverage this facility to extend up to $80 million in loans to licensed buying companies (LBCs) who procure cocoa directly from farmers.

In a landmark move to transform Ghana's vital cocoa industry, the International Finance Corporation (IFC) has partnered with Société Générale Ghana Plc (SG Ghana) to significantly expand access to finance, enhance sustainability, and strengthen the livelihoods of tens of thousands of smallholder cocoa farmers across the country. The initiative combines both financial and advisory support to address systemic issues affecting the sector, from cash flow gaps to environmental degradation.

Under this new agreement, IFC will provide a local currency loan of up to $40 million through an unfunded risk-sharing facility. SG Ghana will leverage this facility to extend up to $80 million in loans to licensed buying companies (LBCs) who procure cocoa directly from farmers. This financing structure is expected to unlock as much as $320 million in cocoa trade over the next four years.

Lifeline for Ghana's Cocoa Sector and Rural Economy

Ghana is the world's second-largest cocoa producer, with the crop contributing approximately 6% of the country's gross domestic product and sustaining the livelihoods of nearly 30% of the rural population. Despite its central role in the national economy, the sector has faced ongoing challenges including declining yields, inadequate financing, aging farms, and environmental threats such as deforestation.

"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 SG Ghana. "It is also a testament to the long-standing relationship between Ghana Cocobod and Société Générale as a Group."

IFC's Kyle Kelhofer, Senior Country Manager for Ghana, emphasized the broader economic impact. "This initiative reflects IFC's commitment to building resilient value chains that benefit farmers, strengthen local markets, and support sustainable growth. Agriculture remains a critical driver for job creation, exports, and economic stability in Ghana."

Enhancing Traceability and Sustainable Cocoa Production

Beyond providing critical liquidity, the partnership includes advisory services and capacity building aimed at elevating sustainability standards in cocoa farming. Key areas of focus will include:

• Traceability systems to track cocoa from farm to market

• Sustainable sourcing practices aligned with international certifications

• Deforestation risk mitigation through education and responsible land use

• Improved cash flow for both farmers and LBCs to support year-round operations

The initiative is closely tied to the sourcing of Rainforest Alliance certified cocoa, which is cultivated following stringent environmental, social, and economic protocols. Certification ensures that biodiversity is protected, human rights are respected, and farming techniques are environmentally responsible.

Economic and Social Impact: Empowering 75,000 Farmers

Over the course of the four-year facility, the project is projected to support approximately 75,000 smallholder farmers by improving their access to credit, agricultural inputs, and technical training. Farmers will benefit not only from improved prices and more secure markets, but also from knowledge transfer in sustainable farming methods and post-harvest practices.

The financing will also help modernize the operations of LBCs, enabling them to scale their procurement efforts while complying with global sustainability standards. This will ultimately create a more transparent, equitable, and environmentally conscious cocoa value chain in Ghana.

Building on a Strong Partnership

The collaboration builds on a robust partnership between IFC and SG Ghana that began in 2020. To date, IFC has provided about $75 million in local currency financing to support SG Ghana's broader lending to small and medium-sized enterprises (SMEs) across the country, reinforcing the bank's role as a key driver of inclusive growth in Ghana's financial landscape.

As the global demand for sustainably produced cocoa continues to rise, this strategic partnership positions Ghana to meet market expectations while uplifting the rural communities who are the backbone of the industry.