Cocoa Processing Company Plc is in discussion with Afreximbank and BADEA, an international financial institution based in Sudan, to raise $86.7 million, Managing Director, Nana AgyenimBoateng I, has said.
He said part of the loan would be used as working capital, while the remaining would be used to retool the company.
Speaking at the company’ annual general meeting for the 2019/2020 financial year, Nana AgyenimBoateng I, said the company in the period under review had serious setback in profitability and growth as a result of inconsistent bean supply and challenges in the performance of the company’s plant and machinery.
“It is hoped that our efforts at securing the much-needed injection of funds will crytalised in the 2021/2022 financial year. The future of your company looks bright because we believe that the funding support being pursued would be realised and thus commence the expansion and retooling of machinery to optimise production and set us on our track to commence payment of our debts,” he said.
Nana Boateng I, said the loan facility would position the company to procure its own cocoa beans without buying it on credit from COCOBOD.
He said notwithstanding, the poor performance of the company, the Board of Directors and Management would continue to initiate strategies to turn around the company into a profitable venture.
The Managing Director said the company made a loss of $18.6 million and attributed it to the revaluation of the assets of the company and the effect of the corona virus pandemic on the economy.
“Cocoa Processing Company, your company, was heavily affected as huge volumes of its semi-finished cocoa products worth about $20.8 million earmarked for export got locked up in our warehouse. The buyers literally exited the market or cancelled their orders,” Nana Boateng I, said.
The Managing Director said the company was exploring new markets in Kenya, Nigeria, Angola, Rwanda and Qatar.
“Several strategies are also being developed under the auspices of the Africa Continental Free Trade Agreement to boost value addition in cocoa,” he said.
Nana Boateng I, said the company was constructing the Combined Heat and Power Generation Plant into a Biomass Plant, to cut on the energy consumption of the company.He said the Biomass Plant would cut the company’s energy cost by 28 per cent, indicating that spent more than $500,000 a month on energy.The Board Chairman of CPC Plc, KwakuOwusuBaah, said the decision of the two financial institutions to support the CPC Plc demonstrated the […]