Ghana Aims To Surpass Côte d’Ivoire In Cocoa Processing Soon

KEY POINTS

• Ghana is rapidly increasing local cocoa processing capacity nationwide.
  
• The government faces challenges from trade barriers and export restrictions.
  
• Ghana aims to exceed Côte d’Ivoire’s 50 percent cocoa processing benchmark.

Ghana is expected to meet or even exceed Côte d’Ivoire’s indigenous cocoa processing standard in five years, according to President John Dramani Mahama.

Ghana’s progress in local cocoa processing faces trade barriers

Despite persistent trade constraints that impede the expansion of African economies, he cited Ghana’s advancements in domestic cocoa processing as a significant accomplishment.

“The global economic system is biased against Africa,” Mahama stated, emphasizing that non-tariff barriers hinder the export of completed goods by African companies.

At the 51st Annual Meeting of the African Development Fund and the 60th Annual Meeting of the African Development Bank in Abidjan, he addressed a presidential session.

According to Mahama, exporting processed commodities to important markets like the US and Europe presents significant obstacles for local business owners.

“Indigenous companies find it difficult to export completed goods to these markets unless a European processor establishes operations and handles regulations,” he stated.

Mahama pointed out that Ghana has improved its capacity to process cocoa over the years, despite these obstacles.

According to him, Ghana demonstrated consistent development and a dedication to value addition by raising its processing rate from around 25% to 40%.

Ghana pushes for reforms to boost cocoa processing capacity

Mahama hailed Côte d’Ivoire for setting the standard for Ghana to follow by processing 50% of its cocoa domestically, describing their achievement as praiseworthy.

“Within four to five years, we hope to reach Côte d’Ivoire’s 50 percent mark, and then aim to exceed it,” the president declared with assurance.

He restated that increasing local processing will boost the economy, provide jobs, and enhance the value of Ghana’s cocoa exports.

According to Myjoyonline, Mahama underlined that in order for Africa to realize its full economic potential in international markets, it must remove trade and regulatory obstacles.

The president demanded changes that would facilitate exporting and incentivize local entrepreneurs to set up processing facilities.

He came to the conclusion that addressing structural barriers and enhancing trade policies throughout the continent are essential to Africa’s capacity to boost value addition.