The former Minister of State, Mr Kojo Yankah has lauded President Akufo-Addo for the decision to halt raw cocoa exportation to Switzerland. He thanked the President for making such a decision in his recent post on Facebook.
“Ghana Beyond Aid? The President of the Republic of Ghana, Nana Akufo-Addo, has told the Swiss Government in the face: ‘Ghana will no longer export raw cocoa to Switzerland’ and that Ghana has decided to process her own cocoa for export. Thank you, Mr President.”
Kojo Yankah, Former Minister of State.
Despite the President made the announcement about a year ago, discussions triggered by recent impediments imposed on a World Trade Organization (WTO) proposal have reignited interest in the details of his announcement. The WTO proposal would have seen coronavirus vaccines produced in large quantities across developing countries. Specifically, if pharmaceutical corporations can waive off intellectual property claims.
Conversely, some Pan-Africanists see Akufo- Addo’s decision as a possible means through which Africa can win on global trade.
Background
Some 12 months ago, President Akufo-Addo became the first African leader to be invited to Switzerland for a state visit in about 60 years. During his visit, he told the Federal Council of Switzerland, Ghana will no longer export raw cocoa to Switzerland. Then, President Simmoneta Sommaruga was heading the Federal Council of Switzerland.
“Ghana is currently Switzerland’s largest trading partner in sub-Saharan Africa, largely from the export of gold and cocoa to Switzerland and the import of chemical and pharmaceutical products. However, as I have stated on many occasions, Ghana no longer wants to be dependent on the production and export of raw materials, including cocoa beans. We intend to process more and more of our cocoa in our country with the aim of producing more chocolate ourselves. “
President Akufo-Addo
Ghana is no longer looking to export raw cocoa beans to Switzerland. Although Ghana is Switzerland’s biggest trading partner in sub-Saharan Africa, Switzerland, buys its cocoa also from the Ivory Coast. Notably, Ghana happens to be the second-largest producer in the world after Ivory Coast
Last year, both Ghana and Ivory Coast halted the sale of cocoa to United States Confectionary giants Hershey’s and Mars. To clarify, both producers accused these manufacturers for avoiding paying a bonus that will help improve the economic fortunes of poor farmers.
Read also: Hershey’s Sustainability Schemes for Cocoa cancelled
Ghana’s 2021 Cocoa Outlook
According to research conducted by Stanbic Bank, only 30% of Ghana’s cocoa production are locally processed. Also, the finding also showed that out of $1.9 billion revenue accrued from the production of cocoa in Ghana annually, the daily revenue realized from the crop by the over 800,000 farmers across the country is $1.
However, the Government has an ambitious target of raising local consumption of cocoa and cocoa products, and increasing cocoa processing. The government has stepped up efforts to provide support for entrepreneurs and investors interested in cocoa processing and value-addition.
According to 2021 Budget Statement, the government expects the sector to grow. It revealed that the COCOBOD’s crop review for 2020/2021 year projected a production figure of 896,000 tonnes. By the end of February 2021, cocoa taken-over stood at 771,461.06 tonnes. This puts the country on course to achieve its target.
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