VenturesNow

Ivory Coast to increase cocoa farmgate price by 50%

Published

9 months ago

March 31, 2024

According to sources at five different export companies quoted by Reuters, Ivory Coast, which is the world’s largest Cocoa producer, plans to increase the official cocoa farmgate price to 1,500 CFA francs ($2.47) per kg from Tuesday from the current 1,000 CFA.

The sources said they were referencing a decision made at a government meeting on Saturday, but they asked to remain anonymous due to the delicate nature of the subject. According to the sources, President Alassane Ouattara of Ivory Coast had earlier in the day approved a plan for a price of 1,100–1,200 CFA francs per kilogram before changing his mind and demanding that the price be considerably higher.

On Sunday, it was impossible to contact the government or the Coffee and Cocoa Council (CCC), which oversees the cocoa industry. The official farmgate price that growers in Ivory Coast, a major producer, can charge for their beans has not yet reflected the more than threefold increase in cocoa prices over the past year as disease and unfavourable weather sent the world market to a third consecutive deficit.

“There were several proposals on the table and as a last resort, the president wanted the highest possible price for the producers so he decided 1,500 CFA per kg instead of 1,200 CFA, which had been validated previously,” the director of a European export company told Reuters.

“Ultimately in the current context, this is the best possible price that the CCC can pay because the sales system in Ivory Coast is such that it is difficult to change prices during the season,” the person added.

Although the World Bank estimates that agriculture contributes 4% of GDP worldwide and up to 25% of GDP in some LDCs, it is difficult to maximize the advantages of agriculture on the continent due to its harsh and unpredictable environment.

While much rain is falling in the West African region, there is a drought in North and East Africa.

Related Topics:Cocoa Featured Ivory Coast

Click to comment

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

23 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”