Cocoa Processing Company (CPC) is set to increase its output capacity following the receipt of an Afreximbank financial support of $70 million. According to the Managing Director of the Cocoa Processing Company, Nana Agyenim Boateng, the company is hoping to do up to 81,000-tonne capacity from the company’s current capacity of 64,500 tonnes. He explained “Africa Export-Import Bank is giving us $70 million for us to expand our total output and for us to retool. This means that we will have room for more”.  He added, ‘So we will be using these funds for Capital Expenditure (CAPEX) to replace some of the old and obsolete machines that have been in existence since the Kwame Nkrumah time then also expand. So the current capacity of 64,500 tonnes will now become 81,000tonnes and the confectionary side of 3000 tonnes will also be increased to 15,000.” The loan facility, according to Mr Agyenim Boateng has gone through due diligence and it is now going through the legal processes after which it will be cleared for disbursement. NEAR DELISTING In 2017, the state-run company, Cocoa Processing company found itself among three other companies put on a watch list by the Ghana Stock Exchange for possible delisting due to their poor financials. According to the Managing Director, Nana Agyenim Boateng the company had an accrued debt of over $100 million due to a number of challenges including the high cost of production as well as poor management in the past. However, as things began to improve, the company escaped delisting following some successful interventions deployed in turning around the fortunes of the company. ROAD TO RECOVERY Under new management and the leadership, the current MD Nana Agyenim Boateng says he’s confident of reducing the company’s losses and debt to return the state-run factory to profitability. He said” as at now, we have done a reduction of our losses by about 48 per cent”  In this regard, a number of measures were being implemented to further improve the company’s financials. Receipt of $70 million loan facility  The MD said will be used to retool and increase the overall output of the company “we will be using these funds for Capital Expenditure (CAPEX) to replace some of the old and obsolete machines that have been in existence since the Kwame Nkrumah time then also expand.” “So the current capacity of 64,500 tonnes will now become 81,000tonnes and the confectionary side of 3000 tonnes will also be increased to 15,000”. Nana Agyenim Boateng said.  Rebranding - artisanal chocolates The MD said “As part of our program, we wanted to do the cocoa processing entrepreneurship program. So through this initiative, we have employed 40 SHS graduates. Since we started it has been really good and a great revenue earner.”  Biomass Project  which is expected to reduce the company’s dependence on the main Grid, i.e. the Ghana Electricity Company hence reducing the cost of energy considerably.  “Averagely the company spends about $6.8 million a year on electricity, fuel and gas so we were wondering what to do and we decided to consider a biomass project where we will use the cocoa pods husk and shells to generate power and steam. So with this new project in the next five year CPC will be paying $2.5 million annually for power against the initial $6.8 million a year. Nana Agyenim Boateng explained. According to him, they are already in talks with some consultants with support from the energy commission to start the project.  Construction of six boreholes  This is to reduce dependency and cost of acquiring water from the Ghana Water Company Limited Other cost-cutting measures Mr Agyenim Boateng said the company has put in place cost-cutting measures such as a performance level based assessment and changing the three-shift system by the workers to two to reduce the cost of transportation and production significantly. Market expansion:  According to The MD the company has worked to acquire necessary certifications to allow CPC to penetrate other markets with their products.  Nana Agyenim Boateng stressed that value addition to the cocoa beans and encouraging a bean to bar value chain is in line with the ‘Ghana beyond aid’ agenda and will further contribute to Ghana staying on top of the market when the African Continental Free Trade Area Agreement kicks in come July this year. ABOUT CPC Cocoa Processing Company Limited based in Tema was established in 1965, later incorporated into a Limited Liability Company in 1981 then publicly listed on the Ghana Stock Exchange in 2003. The company currently does operate two major lines i.e. Cocoa processing and the confectionary factory. The processing sees the conversion of the raw quality premium cocoa bean to semi-finished products such as the cocoa liquor, cocoa butter and cocoa powder. Whereas the confectionary side manufactures finished products such as the Golden tree chocolate, Cocoa beverages etc. Together, the two lines have an annual output of 65,000 metric tonnes of premium cocoa beans.