World Bank Pledges Support to Ivory Coast, Ghana Cocoa Venture

ACCRA (Capital Markets in Africa) – The World Bank said it will support plans by Ivory Coast and Ghana to develop a coordinated strategy for their cocoa sectors as the two biggest producers seek to exert better control over global prices and derive more value from growing the beans.

The pledge by the Washington-based lender comes as the President Alassane Ouattara of Ivory Coast and his Ghanaian counterpart, Nana Akufo-Addo, signed an agreement Tuesday to adopt common policies on the marketing, storage and processing of cocoa. The two West African nations, which account for more than 60 percent of global cocoa output, want to reverse a price slump which cut government revenues and incomes for hundreds of thousands of small-scale farmers.

The World Bank is holding talks with the government of Ivory Coast about the scope of its support, Anne Senges, a spokeswoman for the lender for west and central Africa, said in an emailed response to questions.

The cocoa regulators of two countries are also in talks for a $1.2 billion loan from the African Development Bank, people familiar with the matter said in June. Ivory Coast and Ghana want to build storage facilities for local processing and for the storing and release of stocks based on market demand, said the people.

Source: Bloomberg Business News