I Coast: Cocoa operators split over export ban
- Posted on Friday 28 January 2011 - 09:00Selay Marius Kouassi, AfricaNews reporter in Abidjan, Ivory CoastIvory Coast presidential claimant Alassane Ouattara called for a month-long ban on cocoa exports from Ivory Coast, the world's largest producer of cocoa beans. Since, the cocoa industry in the West African nation is split over whether to heed the call.
Ouattara’s cocoa exports ban, which came into force on January 24th and which is supposed to end on February 23rd, was designed to heap more pressure on President Laurent Gbagbo, who has refused to cede power after disputed elections in November. This ban is the latest in a string of measures – including international travel bans and asset freezes on Gbagbo and his allies – aimed at forcing Ivory Coast’s strongman from power.
Cocoa export is on one of the mainstays of Ivory Coast’s economy. Besides, cocoa export is a key source of revenue for Laurent Gbagbo who refuses to cede power. Cocoa and coffee account for 20 percent of Ivory Coast’s gross domestic product and 40 percent of its export revenues.
Gilbert Anoh N’Guessan, Head of the CGCC, the national cocoa management board and a Gbagbo ally, on Monday 24th told cocoa operators they should ignore the call. “Any decision coming from another source than the CGCC is null and void […] the CGCC is the only body that has authority to take measures that apply to the cocoa and coffee sectors”, he added.
Three days after Ouattara’s call for cocoa export ban, officials at the Port Autonome d’Abidjan, said cocoa exports from the West African nation – which supplies around one third of the world’s cocoa – continued as normal. “The truck-loads of cocoa have not stopped coming since this morning,” said Sery Drepoba Leandre, spokesperson for the port. “There is no disruption in cocoa exportation activities.”
Yet Ousmane Attai, a cocoa specialist in Abidjan, said some traders – convinced fierce international pressure and the threat of military action from regional bloc ECOWAS will eventually force Gbagbo out – will heed his call.
Meroux Loic is one such trader. “I don’t want to spoil my cocoa trade business forever,” he said. “What will I do when Ouattara takes office and his appointed team runs national administrations? I don’t want to compromise my chance to continue this business.”
Others, however, say pressing financial concerns mean they cannot afford to shut down their businesses.
“I borrowed money and have invested plenty of money to buy these beans from remote areas of the country,” said Najib Ezzedine, one of the biggest cocoa traders in Ivory Coast. “I have to sell them now to refund the sum that I borrowed and I have to meet the deadline set by the bank, otherwise, I am done … I can’t stop my cocoa trade now.”
At the time being, there is no visible sign of the impact of the ban on cocoa exports.
Ouattara’s intention is to choke the supply of cocoa money to Gbagbo’s regime, preventing him from paying civil servants and the military he has been using to cling to power. However, he is holed up inside Golf hotel while Gbagbo has control of all state institutions, making it impossible to enforce a ban.
But, the situation could change should the European Union and United States choose to institute a trade embargo on Ivory Coast – shutting down the supply of those who continue to export.
The US on Monday said it supported Ouattara’s ban, although Maja Kocijancic, spokeswoman for EU foreign policy Chief Catherine Ashton, said that while a trade embargo was a possibility, it was “not an immediate option.”
Rumours of an embargo on cocoa and coffee rippled through Abidjan, leading Marcel Gossio, a Gbagbo ally to warn Ivory Coast would respond to any attempts to block exports.
“If the European bloc dare impose a ban on Ivory Coast cocoa and coffee productions on its territories, Ivory Coast will also impose a ban on all European ships,” said Marcel Gossio, the director of the port. “No European ships will be allowed in our ports and we will turn towards new partners in Asia, Africa and Latin America.”
Boniface Kakou is a son of a cocoa farmer. He currently studies Law at Cocody University. Boniface thinks cocoa export ban will affect much the traders than Gbagbo: “[…] this measure will bring in more problems to the farmers themselves, not Gbagbo or even Ouattara” said Boniface.
“Please, let’s think about another means to remove Gbagbo from power than thinking of a ban on cocoa exportation, since cocoa is the major source of income to the country”. The Law student added.
The world community has piled pressure on the incumbent president Gbagbo but he is not showing any sign of resignation.
Reactions
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