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How slowing cocoa demand will impact Côte d’Ivoire’s economy
The World Bank estimates a 5.5 per cent growth for Côte d’Ivoire’s economy this year, while the International Monetary Fund (IMF) pegged its growth projections at 6.2 per cent. However, the second wave of the COVID-19 pandemic is affecting the country's main cash crop cocoa, as demand from its key export destinations has slowed and left a pile-up of the beans in warehouses. Nonyane Gaimin, Independent Economist joins CNBC Africa for more.
Mon, 25 Jan 2021 13:21:32 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Côte d’Ivoire's resilience amidst the pandemic and its growth prospects, challenged by the second wave and lockdowns in key export markets
- The importance of political stability in promoting economic growth and addressing post-election unrest
- Opportunities and challenges presented by the African Continental Free Trade Agreement for Côte d’Ivoire's economy
Côte d’Ivoire, a West African nation, has been grappling with the impact of the COVID-19 pandemic on its economy, particularly on its main cash crop cocoa. With the World Bank estimating a 5.5 per cent growth and the IMF projecting a growth rate of 6.2 per cent for the country this year, the second wave of the pandemic has disrupted its key export market. Nonyane Gaimin, an independent economist, shared insights on the challenges and opportunities ahead for Côte d’Ivoire.
The country has shown resilience in the face of the pandemic, being one of the few in sub-Saharan Africa to achieve growth when others were contracting. However, with the resurgence of cases in Côte d’Ivoire and its major export market, the EU, which accounts for 40% of its trade, there are concerns about the impact on the economy. Lockdowns and restrictions in key markets are expected to dampen the recovery prospects for Côte d’Ivoire.
Political stability is also essential for economic growth in the country. The post-election period has been marked by unrest, with legislative elections on the horizon. Addressing these political challenges is crucial to promoting Côte d’Ivoire's economic agenda and sustaining its growth momentum.
Looking to the future, the African Continental Free Trade Agreement presents significant opportunities for Côte d’Ivoire. The agreement can boost the country's manufacturing sector, facilitate exports, and provide tariff-free access to other markets. While there are challenges in terms of determining rules of origin and replacing customs revenue, Côte d’Ivoire is well-positioned with its infrastructure and institutions to benefit from the agreement by meeting the demand for goods from other countries.
As the country navigates through the complexities of a global pandemic and political transitions, strategic economic policies and partnerships will be crucial in mitigating the impact of slowing cocoa demand on Côte d’Ivoire's economy and fostering sustainable growth.
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