Weak global cocoa prices have caused much grief to African producers. Global cocoa futures were down 40% in late April from August 2016, when the decline started.
Côte d’Ivoire, the world’s largest producer of the commodity, has cut its 2017 budget by 10% consequently. Neighbouring Ghana, and second largest cocoa producer, also missed out on about $1 billion in cocoa export earnings due to the bearish market, according to Joseph Boahen Aidoo, Chief Executive of the Ghana Cocoa Board (Cocobod), on the sidelines of the emergency International Cocoa Organization (ICCO) meeting held in Abidjan in late April.
The $1.8-billion loan the Cocobod took for the 2016-17 season was spent carelessly or misappropriated to road contracts by Ghana’s erstwhile John Dramani Mahama administration ahead of elections in December 2016, causing it to run out in March. The Cocobod had to seek $400 million in bridge financing via cocoa bills from the Bank of Ghana, the country’s central bank.
In light of the debilitating effects their cocoa troubles are having on their finances, Côte d’Ivoire and Ghana have been forced to collaborate more. Unfortunately, the countries, which together account for about 60% of global cocoa supply, have different pricing systems.
This story is from the July 2017 edition of Forbes Africa.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 2017 edition of Forbes Africa.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Down To Earth
A new era in satellite technology offers space-down insight. Here are some fascinating world views.
Could A Digital Twin Save Your Life?
Human digital twins are quickly moving beyond manufacturing and into the medical world advancing cancer care, soeeding up drug development, personalizing clinical trials, and much more.
The All-Rounder In Ecotourism
An exclusive interview with renowned Kenya-born landscape architect and pioneer of sustainable tourism Hitesh Mehta. His other fascinating career? Representing East Africa and Kenya in first-class cricket and playing in three ICC World Cup tournaments in the late 1970s and 1980s.
Wheeler-Deeler
Alex Bouaziz’s HR company became the fastest-growing software startup in Silicon Valley history by promising to take the pain out of overseas hiring. But in its rush to a $12 billion valuation, regulators worry it may have been cutting the very compliance corners it’s supposedly maintaining.
Culture Couture
Niger designer Alia Baré, also the daughter of a former president, is working to weave together a positive narrative of her country through fashion.
'We Can Build A Real Unicorn Out Of Africa, Creating Impact'
Manish Sardana, the Nairobi-based co-founder of edtech startup Craydel, wants to democratize access to higher education in Africa and eradicate the study-abroad agent market.
A Record Year For Elections, 2024 Will Determine Global Geopolitics
We are all hopeful that 2024 will definitely bring better sense to people, particularly to those in power to make sincere amends to the lapses of the past.
For The Record
A Brazilian producer and a Kenyan singer came together to create a song last year that sOared ujp music charts globally, and in collaborating With a an India-born director for the video, it is NOW a milestone for African sound.
The Best Game
SA20 Commissioner and former South African cricketer Graeme Smith on the ambition to create the biggest league outside of India, and why putting on a show off the pitch is as important to attract a new audience.
Cream Of The Crop
Food is the future and these proactive startups are focused on shifting agricultural practices to prepare for what is to come.