Business News of Tuesday, 3 April 2018
The African Development Bank (AfDB) is urging a more aggressive push towards agro-industrialization by African Governments to drive sustainable economic growth.
It said it was time the continent moved to the top of the global food value chain by adding value to what it had been producing.
This was contained in a press release signed by the President of the Bank, Dr Akinwumi Adesina, a copy was made available to the Ghana News Agency (GNA).
AfDB made reference to the enormous benefits Africa stood to enjoy through the processing of raw cocoa beans into chocolate.
The continent receives just about five percent of the US$100 billion annual chocolate value.
With experts predicting that the demand for chocolate is most likely to continue, the bank said this was a huge opportunity that should be seized by the cocoa producer countries.
Africa accounts for about 75 percent of the world’s cocoa production but has not been able to cut for itself a bigger slice of the global chocolate market value because it has just been exporting the raw beans.
The statement said the situation should radically change and that the leading producer could not continue to be stuck at the bottom of the value chain – “dominated instead of dominating”.
“African farmers sweat, while others eat sweets. While the price of cocoa has hit an all-time low, profits of global manufacturers of chocolate have hit an all-time high.
It’s time to process Africa’s cocoa in Africa, and end Africa being at the bottom of the global value chain.”
The AfDB has been leading a call to action for Africa to agro-industrialize, and says, this is the key to economic transformation.
“Africa must not be locked at the bottom – it must rapidly add value to what it leads the world in producing.”
It should start producing chocolate to compete with Belgium, Switzerland, United States, France and the others.
This was the way forward to bring in more money, boost production and provide job opportunities.
The Bank’s call reinforces the significance of recently signed cocoa agreement between Ghana and Cote D’ Ivoire – the Abidjan Declaration, which seeks to better the pricing regime, harmonize cocoa marketing policies, intensify collaboration in the field of scientific research and processing of the raw beans for consumption locally, regionally and internationally.