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Ivory Coast intensifies support for cocoa exporters

Published

4 months ago

August 24, 2024

According to two government sources on Friday, the government of Ivory Coast would provide extra assistance to small local cocoa exporters to enable them to more than quadruple their yearly purchasing volumes.

Ivorian exporters must contend with financially stable foreign competitors, as they have been unable to obtain funding from local banks due to financial issues.

The world’s largest producer of cocoa, Ivory Coast, produced 2.2 million tonnes of beans on average over the previous three years, with large multinational corporations handling about 80% of imports and exports.

The government will provide small exporters with subsidies of 10 billion CFA francs ($16.75 million) annually for the next four years, starting in October, when the new cocoa season begins. This will enable them to boost their purchases to 500,000 metric tonnes.

In the past, the government awarded about 3 billion CFA francs annually. This quantity made it possible for cooperatives and exporters to purchase and sell cocoa beans, enabling them to export between 150,000 and 200,000 tonnes annually.

“Our aim is to have national champions in the cocoa sector in order to increase their purchasing volumes, which represent less than 10% of our annual production,” said one of the sources, who works in the prime minister’s office.

According to the second source, a Ministry of Agriculture official, banks should be more inclined to lend money to small exporters because of this funding because they will be more stable financially.

Additionally, it must offer additional assistance as the European Union is ready to impose new rules on the import of goods connected to deforestation, which would intensify rivalry among exporters.

Although the subsidy was a kind gesture, the government needs to do more to make Ivorian businesses competitive with other exporters, according to Yves Brahima Kone, managing director of the Ivory Coast Coffee and Cocoa Council, the country’s regulatory body, who spoke with Reuters.

“If the government wants to achieve this goal, it will need to provide greater, more substantial and sustainable financial support. It’s possible, but it will require a larger subsidy,” Kone said.

Related Topics:coacoa Featured Ivory Coast

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Moroccan annual inflation rises to 0.8% in November

Published

1 day 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.

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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.”