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World Bank Vice-President for Africa Calls for Far-reaching Reforms in Côte d’Ivoire’s Cocoa-Coffee Sector

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Abidjan, Côte d’Ivoire – September 25, 2008 – Tanokro is a cocoa farmers’ camp in the Tiassalé region of Cote d’Ivoire, about 100 km north of Abidjan, the economic capital of Côte d’Ivoire.

Located 22 km outside of Tiassale is a series of cocoa plantations, turned into a school and, established with the support of USAID. Here, people are working to improve the productivity of plantations and experimenting on new cocoa varieties, with a view to increasing the income of farmers.

On one hand, the farm is an ordinary plantation, characterized by traditional farming practices. On the other, it is a model of new technology, producing new varieties of cocoa that flower after 18 months, and produce after two years, rather than the 3 to 6 years it takes traditional cocoa.

Obiageli Ezekwesili engaged in a conversation with farmer Ahou Georgette Kouakou

Obiageli Ezekwesili engaged in a conversation with farmer Ahou Georgette Kouakou

The school teaches farmers how to optimize their efforts. In total, new practices enable them to produce three tons of cocoa per hectare -- through traditional methods, the farmers obtained only one ton per hectare.

Reforming the Industry

Côte d’Ivoire is the world’s leading cocoa producer. It boasts a 40 percent share of the global cocoa market. The sector represents 40 percent of the country’s export earnings and about 20 percent of its GDP. The cocoa-coffee sector has a total of 600,000 producers and directly or indirectly affects an estimated six million people, according to government sources.

Obiageli Ezekwesili arrives at the Tanokro cocoa plantation in Tanokro

Obiageli Ezekwesili arrives at the Tanokro cocoa plantation in Tanokro

Serious management problems in the sector already have led to legal action by the country’s government against chief executives in the industry, who have been detained on corruption charges, including for the embezzlement of over US$224 million for the purchase of a chocolate factory in the United States. As a result, in mid-September 2008, the government established a new management committee to oversee operations in the sector . The objective is to ensure that an increase in the income of farmers contributes to poverty reduction.

Governance in the cocoa-coffee sector was the focus of a trip to Côte d’Ivoire September 5 to 7 by the World Bank’s Africa Region Vice-President Obiageli Ezekwesili. During the trip, Ezekwesili met with President of Republic, Laurent Gbagbo, Prime Minister Guillaume Soro , the government’s economic team, and members of civil society, the private sector and the press.

Ezekwesili’s discussions focused on the need for reforms in the cocoa-coffee sector, an area in which the Bank has been providing financial and technical assistance to support reforms. Reforms, she said, must be more far-reaching.

According to Ezekwesili, decision-making power should be given to the farmers and not to government intermediaries. To government authorities, she underscored the need to reduce taxes and eliminate the institutional obstacles that are preventing farmers from enjoying the fruits of their efforts.

One farmer’s story

As part of her visit to Côte d’Ivoire, Ezekwesili visited the school at Tanokro. About 50 student-farmers attend the school under the direction of Mr. N’Guessan Tano, whose father founded the Tanokro camp. One of the students is Mrs. Ahou Georgette Kouakou. Ahou is here because she is concerned about improving her productivity, and consequently her income. Her goal is to earn more money to be able to educate her children and grand children, treat herself in case of illness, dress and eat better and save money to deal with unforeseen situations.

World Bank Vice-President Obiageli Ezekwesili in conversation with farmers at Tanokro

World Bank Vice-President Obiageli Ezekwesili in conversation with farmers at Tanokro

“The greater part of the fruits of our labor goes into the pockets of buyers, intermediaries and people who are sitting in offices in Abidjan,” Ahou told Ezekwesili, speaking through an interpreter.

According to Ahou, for a kilo of cocoa she receives between CFA 450 and CFA 500 (US$.90 - US$1.10). Exporters then sell the cocoa for up to CFA 750 ($1.63).

This situation is the lot of the majority of cocoa farmers in the region and country who complain that they are not seeing the profits of their efforts.

Ezekwesili promised to work with the government to ensure that farmers are given a fair price for their cocoa.

“We are going to work to initiate reforms,” she told Ahou, “so that your income enables you to cater for the health and education of your children.”

 

By Bakary Sanogo, World Bank Côte d’Ivoire




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