Connect with us

VenturesNow

Ivory Coast to increase cocoa farmgate price by 50%

Published

on

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.

VenturesNow

Nigeria’s GT Holding plans $750 million capital increase

Published

on

Nigerian banking group, Guaranty Trust Holding Plc, wants to raise up to $750 million in capital and will ask its shareholders for permission to do so next month. It will join other banks in increasing their capital to meet new goals.

The Central Bank of Nigeria set minimum capital standards for banks last month. This is meant to make the country’s financial system stronger and give lenders a bigger chance to help the economy grow.

According to Guaranty Trust Holding Plc, Guaranty Trust Bank is one of the best banks in Nigeria. The company said on Friday that it would seek shareholders for permission to raise the money at a meeting on May 9. In the last few weeks, competitors Access Holdings and FBN Holdings have both said they want to raise money. To meet the new level set by the central bank, more than 20 banks in Nigeria will need to get more capital within two years.

A statement from the CBN in March said that commercial banks with foreign licenses must now have a minimum capital base of N500 billion.

The recapitalization is a big boost that will help these banks compete in the world market for money. Regional banks must have at least N50 billion in capital, while national banks with permission must have at least N200 billion.

The apex bank said that lenders need more buffers to help Nigeria’s economic growth goals, especially since the local naira has lost a lot of value since June of last year.

Credit rating agency Fitch said on Wednesday that over the next two years, Nigerian banks will likely issue a lot more shares of stock and merge with other banks, since some small or medium-sized lenders may have trouble getting cash.

Nigeria’s banking system has been through several crises, with the worst ones happening in 2008 and 2009. The number of banks dropped from about 90 in 2005 to 24 by 2006 and to 20 commercial banks by the end of 2011. This was because of a program of recapitalization and consolidation.

Continue Reading

VenturesNow

Ethiopia might devalue currency to secure IMF loan

Published

on

Ethiopia may need to decide on a big currency devaluation soon to get a rescue loan from the International Monetary Fund (IMF).

In December, East Africa’s most populous country went bankrupt, making it the third African country in as many years to not pay its debts. The country already had high inflation.

Ethiopia hasn’t gotten any money from the IMF since 2020, and its last loan deal with the fund fell through in 2021. In late 2022, the federal government and a rebellious regional authority made a deal to end a cold war that had been going on for two years.

Although the IMF has not said that currency reform is necessary for its backing, it however maintained that progress was made during its most recent visit. However, the Fund usually favours flexible, market-determined exchange rates. Ethiopia has requested $3.5 billion of support from the IMF, sources told Reuters last year.

The birr currently trades at between 117 and 120 per dollar on the black market, which is more than double the official rate of about 56.7. This is because there is a constant lack of foreign cash and the exchange rate is tightly controlled.

“It seems that the Ethiopian authorities have found accepting the demands of the IMF hard,” said Abdulmenan Mohammed, an Ethiopian economic analyst based in Britain.

“The Ethiopian authorities are worried about the devaluation of the birr, (which) would have serious negative economic repercussions, including soaring inflation… and surging foreign currency denominated debts in terms of birr.”

Early in 2021, Ethiopia asked the G20’s Common Framework to restructure its debt. This was set up in response to the COVID-19 pandemic to include new creditor countries like China and India. Other African countries like Tunisia and Zambia also suffered a similar fate with their foreign debt at the time.

As of the end of March, Ethiopia’s foreign debt totals $28.2 billion. According to Boston University’s Chinese Loans to Africa Database, the country’s biggest bilateral creditor, China, agreed to stop collecting its debts in August 2023. From 2006 to 2022, China promised to give the country $14 billion.

Continue Reading

EDITOR’S PICK

Musings From Abroad4 hours ago

55 million people facing severe hunger in West and Central Africa— UN

A food crisis has been made worse by rising prices in West and Central Africa. In the next few months,...

VenturesNow5 hours ago

Nigeria’s GT Holding plans $750 million capital increase

Nigerian banking group, Guaranty Trust Holding Plc, wants to raise up to $750 million in capital and will ask its...

Uncategorized8 hours ago

Nigeria’s bleak economy will turn around by December— Tinubu

President Bola Tinubu has once again assured Nigerians that the country’s wobbling economy will experience a complete turnaround by December....

Uncategorized22 hours ago

South African used-car startup WeBuyCars now listed on the Jo’burg Stock Exchange

South African used-car startup, WeBuyCars, is now officially listed on the Main Board of the Johannesburg Stock Exchange (JSE) under...

Uncategorized23 hours ago

Ghana’s VP Bawumia throws weight behind anti-LGBTQ campaign

Ghana’s Vice President, Dr. Mahamudu Bawumia, has thrown his weight behind those against the LGBTQ community in the country. Bawumia,...

Uncategorized23 hours ago

Kenyan marathoner Kipchoge upbeat about winning third Olympic gold

Kenya’s double Olympic gold medallist, Eliud Kipchoge, is in a confident mood that he can win a historic third successive...

Uncategorized23 hours ago

Hichilema sacks Zambia Public Procurement Authority boss with immediate effect

Few weeks after sacking the Accountant-General, Kennedy Muso, and Controller of Internal Audit at the Ministry of Finance and National...

Uncategorized1 day ago

Nigeria: 812 killed, 855 abducted by criminal elements in March alone— Report

A security and intelligence consulting firm in Nigeria, Beacon Security and Intelligence Limited, has released a damning report in which...

Musings From Abroad2 days ago

Russia begins diesel exports to Sudan as EU boycott bites

London Stock Exchange Group (LSEG) data shows that Russia has started sending fuel to troubled North African country, Sudan. The...

Uncategorized2 days ago

Ghanaian fintech Zeepay raises equity funds to support African, Caribbean expansion

Ghanaian fintech, Zeepay, has announced securing a round of equity investment aimed at supporting its expansion plans in Africa and...

Trending