Business in Ghana

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President-elect bans Ivory Coast cocoa exports

Posted by Business in Ghana on January 24, 2011

Traders are bracing for a jump in the price of cocoa on Monday, after the internationally recognised president-elect of Ivory Coast imposed a one month export ban in an attempt to oust Laurent Gbagbo, who the international community said lost elections though he remains president.

Cocoa is the main source of income for the government of Ivory Coast and any stoppage in exports would cut the funding Mr Gbagbo relies on to pay loyal civil servants and the military. Diplomats believe he needs about $150m a month.

Any reduction in supply is likely to push the price of the commodity used in chocolate towards a 30-year high because Ivory Coast accounts for about 40 per cent of global cocoa exports. The cocoa market closed on Friday at a 6-month high of £2,114 per tonne and traders fear prices could jump as high as 10 per cent on opening on Monday.

 

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