US-China trade deal: 3 fundamental issues remain unresolved
The U.S. and China have reportedly reached a so-called phase one deal in their ongoing trade war.
By David Whitehouse
Posted on Tuesday, 12 November 2019 15:35
Ghana and Côte d’Ivoire need to get Nigeria and Cameroon on board their minimum cocoa price agreement, Ghanaian President Nana Akufo-Addo said at the Africa Investment Forum in Johannesburg.
“Structural issues have to be addressed first,” Akufo-Addo said, giving Nigeria’s lack of a cocoa marketing board as an example. “But such an association has to be the way forward.”
Akufo-Addo spoke at the signing of a $600m syndicated loan to the Ghana cocoa board COCOBOD, arranged by the African Development Bank and underwritten by Credit Suisse and the Industrial and Commercial Bank of China.
Nigeria and Cameroon each account for about 10% of the world’s cocoa production. Ghana and Côte d’Ivoire together produce about 65% of the world’s cocoa but get only about $6bn each year from the $100bn global chocolate industry.
In June, Ghana and Côte d’Ivoire, which together produce about 65% of the world’s cocoa, agreed a price floor of $2,600 per tonne of cocoa produced.
According to analysts at The Economist Intelligence Unit (EIU) in London, previous efforts to introduce minimum sale prices have failed on the back of weak collaboration between countries.
It would currently be difficult for Côte d’Ivoire and Ghana to withhold cocoa from the market for any length of time to enforce minimum prices since cold storage and warehouse facilities are insufficient, the EIU says.
Bottom Line: A clear signal from Nigeria on marketing boards would give new momentum to west African efforts to enforce minimum cocoa prices.
The Africa Report uses cookies to provide you with a quality user experience, measure audience, and provide you with personalized advertising. By continuing on The Africa Report, you agree to the use of cookies under the terms of our privacy policy.
You can change your preferences at any time.