VenturesNow

Cocoa producers in Ghana worry about prices, child labour

Published

3 weeks ago

November 1, 2024

A “living income” for farmers is one of the major environmental and social concerns that Ghanaian cocoa growers listed in a complaint they submitted to state regulator, Cocobod, on Thursday.

Thirty farmers signed the complaint, which also expressed worries about the world’s second-largest chocolate producer’s ongoing use of pesticides, child labour, and deforestation.

As a condition of a $600 million syndicated loan arranged by the African Development Bank (AfDB) in 2019, it will test a grievance mechanism developed by Cocobod.

According to its mandate, Cocobod has extensive authority over the regulation of pesticide distribution, cocoa marketing, and farmer prices.

“The AfDB sought to address precisely the type of environmental and social issues identified in this petition when it mandated the creation of the…grievance mechanism,” the complaint, seen by Reuters, said.

Studies showing that just a small percentage of Ghanaian farmers make a decent wage from their cocoa were highlighted in the producers’ complaint.

“Cocobod must require companies to pay farmers a higher price…a living income,” it said, adding higher prices were also “an essential first step towards eliminating child labour”.

According to the farmers, Cocobod must also enforce firms’ deforestation pledges, guarantee that their supply chains are open to the public, prohibit the sale of hazardous chemicals, and promote agricultural sustainability.

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

2 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

4 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.