AgTrade

The internet and social media went abuzz recently with the video footage of the high-level meeting between Ghana and Switzerland, where H.E. Nana Akufo-Addo stressed the importance of value-added processing of raw materials to the economic prosperity of Ghana. To many, the apparent bold stance by an African leader was laudable.

It is a well-known fact that approximately 70% of global cocoa beans trade originates from West Africa. Côte d’Ivoire and Ghana alone account for 58% of the global cocoa beans trade, which was estimated at $8.25 billion in 2018. However, the trade of chocolate, which is the main finished product from cocoa beans, is dominated by European countries. Netherlands, Belgium, Germany, and Italy account for 43% of the global chocolate trade, estimated at $28.5 billion in 2018. Even the global trade of intermediate goods from cocoa beans (cocoa paste, cocoa butter, and cocoa powder), estimated at $10.5 billion in 2018, is still dominated by these European countries.

Clearly, motivation exists for West African cocoa beans producer/exporters to pursue the value-addition route. The cocoa beans trade flow summarized in the figure below could serve as a pointer to where renegotiation efforts with other trading partners might be best directed.

Who sells cocoa beans to whom? Analysis based on COMTRADE data curated by The Growth Lab at Harvard University. The Atlas of Economic Complexity.