🎬Chocolate hustle

Good morning. For anyone who’s asking, it’s 12 more Fridays until Christmas. Hang in there.

— Geraldine Ndzomo.

AGRICULTURE
Cocoa-exporting countries are buckling up

Finally, some reassuring news coming your way: cocoa exporters are working round the clock to ensure they come through for your Valentine’s Day plans next year.

This week, Ivory Coast, which leads cocoa production globally increased the amount it pays its farmers for their harvest from $3000 to about $3400 per ton. Its close rival, Ghana also recorded a pay increase for its farmers although not as significant. This increase comes off the back of a challenging year that saw stunted output across West Africa and lots of cocoa farmers run out of business.

Bad tides, good fortunes.

For Ivory Coast and Ghana, last year’s woes have become a blessing in disguise;

• A combination of bad weather, disease, and lack of farming inputs saw production plummet to about 2.2 million tons.

• The resulting deficit meant that cocoa futures would trade significantly higher, peaking at $11,000 per ton this year.

• The high trade value now meant farmers could get a fair cut from the profits.

But it’s not all altruism, however. Both countries face significant losses from the smuggling of crops to Liberia and Sierra Leone -both of which have little regulation of prices- where farmers can get bigger paydays.

The farmers want more. Since the announcement, Ivorian farmers have heckled President Alassane Ouattara, insisting his government keeps its promise of getting the farmers paid at least 60% of the sale price of cocoa on the international market. Cocoa futures currently trade at $7,700 a ton which would mean a $4,500-per-ton payday for farmers.

More buckling needed? Price setting by both governments has kept growers from fully benefiting from the global price surge. Analysts estimate that Ivory Coast has lost more than 200,000 tons of crops to smuggling in the past year as a result. -GN.

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SNIPPETS

• Russia is considering canceling visas for 9 African countries. While the timeline is uncertain, Russia’s push to replace the West following Africa’s wave of coups has become undeniable.

• Swift movement. Rwanda's health minister has announced that the country will kick off vaccine and therapeutic clinical trials to treat Marburg disease in the coming weeks, as the country tries to contain its first outbreak of the viral fever.

• Leading the pack. Ethiopia is embarking on a bold transformation towards electromobility with the ambitious goal of 440,000 electric vehicles by 2030. It’s imposing a 0% tax on imported electric vehicles, a first on the continent.

• Day 2 of the “Stop Galamsey” protests in Ghana kick off today. The three-day demonstrations are intended to pressure the government to end illegal mining across Ghana. Cocoa farmlands are the hardest hit as a result of the water contamination from the activity.