Ghana spearheads efforts to establish African Cocoa Exchange for price control of commodity
Ghana is taking the lead in advocating for the establishment of a Cocoa Exchange on the African continent, aiming to give African cocoa producers some control over commodity pricing. The proposed Cocoa Exchange will serve as an international marketing platform for financing and trading cocoa proceeds, providing a means for African cocoa farmers to negotiate better pricing.
Currently, cocoa producers in Africa face challenges in bargaining for fair prices due to the domination of only two international markets, namely New York and London. By establishing an African Cocoa Exchange, the continent aims to gain more influence over cocoa pricing, given that Africa is the largest producer of cocoa in the world.
Joseph Boahen Aidoo, the Chief Executive of the Ghana Cocoa Board, emphasized the importance of the Cocoa Exchange in granting Africa greater control over pricing. Aidoo stated that the initiative would instill confidence in producers regarding cocoa pricing in the global market. By having an international platform, such as the one being built by the International Cocoa and Coffee Organisation (ICCO), Africa will have more participation in setting prices.
Aidoo further highlighted the potential benefits of having regional markets, such as Accra, Lagos, or Abuja, where Africa can exert influence and play a role in determining pricing. This move is expected to mark a significant step forward in ensuring fairer pricing for African cocoa producers.
The Minister of Food and Agriculture, Bryan Acheampong, expressed his support for the establishment of the African Cocoa Exchange and hailed it as a new era for the continent’s cocoa industry. Acheampong sees this initiative as an opportunity to revolutionize the cocoa supply chain and create greater value for all stakeholders involved.
It is anticipated that the African Cocoa Exchange will be established within this year, with Ghana positioning itself as a potential host for the platform. The initiative has garnered support from the government, indicating a commitment to enhancing the cocoa industry’s profitability and sustainability in Africa.
Ghana’s leadership in advocating for the establishment of an African Cocoa Exchange reflects the country’s dedication to empowering cocoa producers and ensuring fairer pricing. By providing a platform for financing and trading cocoa proceeds, the proposed exchange will contribute to reshaping the cocoa supply chain in Africa and delivering greater value to all stakeholders.
