The outlook of the Ghana cedi now hinges on the timing of the anticipated foreign exchange inflows from the cocoa syndication loan and the second tranche of the International Monetary Fund.
According to GCB Capital, this is crucial to the stability of the cedi for the rest of the year.
For the remainder of quarter 4, 2023, many analysts and market watchers believe the inflows of the cocoa syndication loan and the second tranche of the International Monetary Fund bailout package will influence the performance of the cedi.
Ghana Cocoa Board (COCOBOD) is yet to close the 2023/24 annual cocoa loan syndication of $800 million. The country is also awaiting a $600 million inflow from the IMF and other disbursements from the World Bank.
GCB Capital said, “We believe the delayed closure, possibly due to unfavourable pricing, partly underscores the thinning foreign exchange liquidity conditions on the market”.
Others believe that the cedi’s performance for the rest of 2023 is based on foreign inflows that come in around this time of the year.
The cedi last week remained broadly stable against the US dollar, moving within a predictable range on both the interbank and retail market segments.
This was after rating agency, Fitch Ratings, upgraded Ghana’s rating to ‘CCC’ from restrictive default.
The local unit remained fairly stable (-0.08%) week-on-week vs the US dollar in the retail market, starting the week’s trades at a mid-rate of 12.00/$ to close at 12.01/$.
Although the Bank of Ghana provided some foreign exchange support, the unit weakened 0.34% week-on-week against the pound but remained unchanged against the euro on the retail market.
Likewise, the local currency depreciated by 0.33% against the dollar, 1.68% against the pound, and 2.18% against the euro in the interbank market on a week-on-week basis
Meanwhile, the cedi has lost about 11.7% against the dollar in the retail market since January 1, 2023 and about 22% on the interbank market.
Africa Development Bank (AfDB) has announced the launch of the Special Agro-Industrial Processing Zones Alliance (SAPZ).
The project aims to mobilise at least $2 billion in financing and investment commitments from its members over the next five years.
President of the African Development Bank, Femi Adesina, says the project is a significant step towards making Africa a player in the global food and agricultural value chains.
The Africa Development Bank (AfDB) has announced the launch of the Special Agro-Industrial Processing Zones Alliance (SAPZ), a groundbreaking project aimed at mobilizing at least $2 billion in financing and investment commitments from its members and partners over the next five years.
The Special Agro-Industrial Processing Zones Alliance was launched at the ongoing Africa Investment Forum by a group of founding partners, including Afreximbank, Arise Integrated Industrial Platforms, the United Nations Industrial Development Organization (UNIDO), and the Islamic Development Bank (ISDB).
This ambitious project, according to the President of the African Development Bank, Dr Akinwunmi Adesina, is a significant step towards making Africa a player in the global food and agricultural value chains.
“The size of Africa’s food and agriculture market is expected to reach $1 trillion by 2030, with the new millionaires and billionaires coming from the food and agriculture industry rather than the oil and gas sector. It’s time for Africa to fill airplanes and ships with processed and value-added foods and agricultural commodities for trade around the world,” Dr. Adesina stated.
The Minister of State for Treasury, Republic of Rwanda, Richard Tusabe, who was also present at the launch of the initiative, believes that the SAPZ will give Africa a chance to produce the food it needs at scale while also producing high-quality goods.
“The SAPZ will play a critical role in achieving this goal by producing quality food at scale, not only to feed the African population but also to export around the world,” he said.
The Africa Investment Forum, themed “Unlocking Africa’s value chains“, brings together over 1,500 participants from more than 80 countries, offering a unique opportunity to delve into the world of pan-African dealmaking.
The forum focuses on digital disruptors and transformation technology, providing a platform for insightful discussions about the diverse opportunities and challenges faced by the African economy.
Amid ongoing discussions about the future of the African Growth and Opportunity Act (AGOA) – which allows qualifying African countries to export certain products duty-free to the US – several food and agriculture companies with operations in Nigeria are already tapping into the massive American market.
Lanre Awojoodu, CEO of Sourcing and Produce, initially focused on exporting cocoa from Nigeria to Europe before expanding to commodities like cashew nuts and ginger. In 2021, the company introduced its own brand, So Pure, and opened a storefront on Amazon. Aimed at the Nigerian diaspora in the US, So Pure offers products such as the ancient grain fonio, fufu flour (made from starchy vegetables like cassava and yam), ofada rice (an unpolished, parboiled rice native to Nigeria), pepper soup spice, blended crayfish, and suya mix (a robust blend of West African spices).
These processed goods are sourced and packaged in Nigeria and then shipped to the US, where Sourcing and Produce has also established an office in Wyoming.
Another Nigerian entrepreneur tapping the American market is Shalom Bako Dangombe. When he was 14 years old, his father relocated their family of five from Bauchi state in northern Nigeria to Orange County, California. There, Bako finished high school and attended college, and at one point it looked like he would commit to a future as a professional soccer player. He played first at his college, where he earned a communications degree, and later the Los Angeles Galaxy.
Yet now, in his mid-thirties, Bako spends his days engaging with smallholder farmers in northern Nigeria, persuading them to grow hibiscus flowers for Afrivana, the company he established in 2019. Afrivana specialises in marketing and distributing African superfoods, particularly dried hibiscus flowers. The company sells its products in bulk or under private label to clients in the US, UK, and beyond.
When he noticed hibiscus tea on American shelves, it brought back childhood memories of selling the beverage to classmates after school. Known as zobo in northern Nigeria, the drink is popular among Mexican and Caribbean communities in the US. Bako recognised a ready market for the flower, which was used to fence crops in his home village.
However, his early attempts to engage American buyers were met with reluctance. To many companies, the prospect of doing business with a Nigerian entity seemed fraught with risk. “We overcame those hurdles by importing larger volumes and storing them in the US. Then we distributed from these warehouses,” explains Bako. This tactic proved successful as clients were more comfortable with the product being readily available in their vicinity and promptly delivered.
Shine Bridge Global, a US-based food science and agribusiness company, was established in 2018 by Dr Tony Bello, a native of Nigeria. The company specialises in creating products from cassava sourced in Nigeria.
In recent years, Shine Bridge Global has been focusing on converting high-quality cassava flour into instant tapioca flakes. Tapioca is derived from the cassava root and the resulting flakes, according to Bello, have similar applications to potato flakes. Potato flakes are utilised as a food ingredient in the production of various commercially available items, such as pasta and snacks, and also serve as a thickener in gravies and desserts. The company is also in the process of developing a few other cassava-derived food products such as crackers, pizza crusts, ready-mix fufu, fried snacks and flatbreads – all using its tapioca flakes.
Shine Bridge Global has set its sights on launching both the tapioca flakes and the end-consumer packaged goods in the US and UK for a trial phase. Following this, it plans to gradually scale up production, selling to consumer packaged goods companies and marketers.
Affiong Williams, CEO of ReelFruit – a producer of dried fruit snacks based in Nigeria – views the substantial Nigerian diaspora in America as an opportunity for businesses like hers to gain a foothold in the US market. “There is no better market, or no lower hanging fruit, than your people in another country,” she says. “I see a growing opportunity for products such as mine and other food products that are becoming more global in their standards, to sell to the Nigerian market in the US.”
An estimated 5 million Nigerians live overseas, with a notable portion residing in the US. While the Nigerian diaspora in the US might feel a connection to their homeland, it doesn’t guarantee they’ll choose a ReelFruit packet out of nostalgia. Williams acknowledges that for her product to be successful, it must also resonate with a broader American consumer base, not just those with Nigerian heritage. “Many foods exported from Nigeria to the US are for Nigerians in the diaspora, however, if people could produce food and snacks with wider appeal it could be a big opportunity,” she notes.
Ignitia, a tropical weather forecasting company has over the years been supporting tropical farmers across the globe with climate intelligence solutions.
Their aim is to help address the problem of low accuracy weather forecasts in the tropical regions with its atmospheric physics-based numerical predictions, the company delivers hyper-local forecasts that are twice as accurate as global models.
They provide crop specific climate-smart advisory, co-designed with food system stakeholders and delivered via SMS, WhatsApp, smartphone apps, web and APIs sent across a range of different time scales, ranging from 48h rainfall forecast to monthly and seasonal predictions without requiring expensive, hard to maintain weather stations.
Climate
During a visit to a maize demonstration field at Obawale and Sodjonu in the Yilo Krobo District of the Eastern Region, Kwabena Frimpong, the Regional Director for Africa, ignitia, elaborated that their collaboration with small-scale farmers in Ghana and West Africa dates back to 2015.
According to him, the primary goal has been to furnish these farmers with dependable SMS forecasts, thereby mitigating risks and minimizing losses in their various communities.
“We are based in Ghana, but have expanded into Burkina Faso, Ivory Coast, Mali, Togo, Nigeria, among others, because our weather model is dependent on satellite data, our ability to expand is not hindered by the high costs of creating on-ground infrastructure; this means that expansion to new tropical areas is easier.
“Climate change poses a significant threat to food security and the livelihoods of smallholder farmers in tropical regions with weather performance worse than tossing a coin and more than 96% of cultivated land is rain-fed.
“This is why I am excited that we have been able to establish two different demonstration farms in the Eastern Region of Ghana where our SMS services are being tested to confirm with farmers if really our technology is the world’s first and most accurate tropical weather forecasting company with over 84% reliability” he said.
Municipal Agric Officer in charge of extension with the Department of Agriculture, Dr. Francis Nii Clottey Odonkor mentioned that the demonstration farms are encouraging farmers to embrace this great innovation introduced by ignitia.
“This tool enables us to give more frequent and district-level predictions of rainfall, dryness, and drought which helps us to provide advanced warning of rains or dry days to our farmers in the various communities.
“Their service has been tailored for the primary sector and they have collaborated with farmers and growers over the last two years to ensure it provides useful information.
“It’s helping farmers and growers to prepare in advance ahead of planting or spraying pesticides on their crops.
“All this while we were looking for a more accurate medium-term forecast, that will enable us to make reactive decisions all the time.
“Having as much information as we can around an uncontrollable thing, which is the weather, is really helpful in the farming business” he said.
Services
Business Advisor with ignitia Ghana, Miranda Osei Agyemang explained how ignitia’s services are helping farmers in these critical times.
“ignitia offers farmers an affordable SMS service which is just costing the farmer 20 Ghana Pesewas a day.
“One of the significant advantages of our SMS weather alert system is the provision of real-time weather updates; instead of relying on outdated forecasts, our users receive up-to-date information directly on their mobile device and they do not need internet connectivity or smart phones, which makes them accessible to a wider audience even in the rural communities.
“This enables them to stay informed about rapidly changing weather conditions and adjust their plans accordingly.
“ignitia empowers farmers to sustainably grow and improve yield, income, and family livelihoods by enabling better decision making for their farming activities, while promoting regenerative agriculture” she added.
Agric Extension Agent with the Ministry of Food and Agriculture, stationed at Abrewankor and Nkurakan Operational Area, Ernest Amanor – Larbi explained that farmers in these communities received training on how to use the SMS Services.
“Our farmers have learnt how to make decisions based on the information received and understand the uncertainties.
“ignitia’s SMS weather alert service has come to play a vital role in enhancing safety and preparedness at our community level.
“We are now receiving timely weather alerts, individuals can take necessary precautions and make informed decisions to protect themselves and their farms.
“Traditional methods of weather alerts, such as radio or television broadcasts, may not always reach us in a timely manner and that is why I am excited about ignitia’s SMS weather alert service for my farmers” he added.
Appreciation
The over 60 farmers who joined in the field visit to have a look at the demonstration farm were grateful to ignitia Ghana for introducing this new SMS weather alert service to them and their Agriculture extension officers in the Yilo Krobo District.
“We are excited that this SMS weather alert service delivers real-time weather updates and emergency notifications directly to our mobile phones via text messages, which is very easy for us farmers to read and understand based on your location and preferences.
“We have learnt in our training that users can select the types of alerts they wish to receive, such as severe weather warnings, temperature fluctuations, or air quality alerts.
“This customization ensures that individuals receive alerts relevant to their specific location and interests” said 2022 Best farmer for Yilo Krobo, John Kwame Mautsuemi and Regina Nartey Atta a Maize farmer in the Obawale community.
The African Platform for Sustainable Cocoa, which brings together civil society cocoa platforms from Cote d’Ivoire and Ghana, has learned from the press of discussions between the main cocoa producing countries (Cote d’ivoire and Ghana) and the main buyers of cocoa futures. According to public reports, the industry is refusing to pay contracts at the current market price plus the Living Income Differential (LID), despite promising to do so.
The Ivorian Platform for Sustainable Cocoa (PICD) and the Ghana Cocoa Civil Society Platform (GCCP], grouped together within the African Platform for Sustainable Cocoa, denounce this latest breach of the industry’s commitment to the fight against poverty and the right of farmers to a decent income.
In Cote d’Ivoire and Ghana, the market situation had raised hopes of a higher price at last for producers, after years of low prices. But the farm gate price of cocoa for the 2023 2024 season announced in the two countries did not reflect the price rise on the world market: 1,000 FCFA in Cote d’Ivoire and 1,308.99 Cedi in Ghana, prices appreciated in different ways but not much higher than last season, when the world price of cocoa was lower. What’s more, these farm gate prices are still well below what is needed to enable farmers to earn a decent income, a commitment that all stakeholders must make.
As the PICD pointed out in its communication No. 3 published on 7 October 2023, this situation is also due to the cocoa market, which operates in such a way that all the risks fall on the shoulders of producers, who are already very badly off in terms of sharing the profits generated by the sector.
The statement in the media by a company representative that it will not be able to buy cocoa at the moment because “it creates too much risk for us if the market turns and prices fall”, illustrates precisely this situation where the large multinationals have the power to pass on all the risks of price variations to the producers, who are people living in extreme poverty.
We say: this is not acceptable. Because the farm gate price for the 2024 2025 marketing year is at stake right now. There is no point in having high prices in 5 6 months if all the contracts are sold at a low price today. The farm gate price for next season will be set on the basis of the contracts sold.
We call on the industry to buy cocoa now, and put an end to this practice of forcing prices down, which goes totally against their commitments to sustainability and the fight against extreme poverty among producers.
We are calling on the governments of consumer countries, particularly the European Union, to address this situation, which is likely to jeopardise all the efforts made to create a climate conducive to the sustainability of cocoa, which necessarily involves better remuneration for producers. The European Union must impose regulatory obligations on companies to force them to pay producers a price that is high enough to provide an adequate standard of living.
We would like to draw the attention of the authorities of Cote d’Ivoire and Ghana to the fact that it is absolutely necessary to open discussions on the management of the stabilisation fund financed by the Living Income Differential.
So that all opinions can be called to witness the unfair behaviour of the industry at a time when organisational efforts are underway for a systemic and sustainable improvement in the living conditions of cocoa producers. We say that it is at the price of this transparency that we can collectively be in a position to fundamentally change the situation.
About the African Platform for Sustainable Cocoa (APSC)
The African Platform for Sustainable Cocoa was created in July 2022 in Grand Bassam. It currently comprises the Ivorian Platform for Sustainable Cocoa (PICD) and the Ghana Cocoa Civil Society Platform (GCCP}.
The Africa Agribusiness Excellence and Leadership Awards 2023 to be held alongside agrofood & plastprintpack Ghana 2023 promises to be another one of the biggest Agribusiness events on the continent as we welcome international participation.
The Chamber of Agribusiness Ghana CAG and partners organises the Africa Agribusiness Excellence and Leadership Awards alongside the 6th edition of Ghana’s most important sectoral trade show agrofood & plastprintpack Ghana 2023.
This year’s Leadership Awards will be held on 22 November 2023 at the Accra International Conference Center – Grand Arena. It is organised in collaboration with AHK Ghana – Delegation of German Industry and Commerce in Ghana, and supported by fairtrade Messe, the organisers of agrofood & plastprintpack Ghana 2023 exhibition & conference.
The Africa Agribusiness Excellence and Leadership Awards is a prestigious awards programme that seeks to recognise and reward excellence and leadership across the agribusiness value chain I, food systems and Agro Industry Ecosystem in Africa . The Awards showcase and recognise individuals, agribusinesses and institutions that play significant roles in the growth and development of the agribusiness sector, while recognising the key functions within the areas that promote growth and sustainability.
The Awards scheme equally brings together players in Africa’s Agro Food Systems and the Agribusiness industry, Policy makers, and Financial Institutions, Agtech Industry and Development Partners to recognise achievements from local and international companies involved in promoting the development of the agribusiness sector in Africa.
The benchmarks for company performance would be based on some key performance indicators (KPIs) to derive the criteria of excellence. Key among the criteria is innovation, customer service, corporate social responsibility and competitive products/services. Agribusinesses, who are weighted above the scores, will be entered into the final list. The Awards have a range of categories suited for any successful agribusiness organisation to tell their story; from large private and public agribusiness companies through to thriving entrepreneurial agribusinesses, promising agribusiness start-ups and established Agri-SMEs.
The categories of the awards are:
Agribusiness industry Agribusiness company of the year Promising Agribusiness of company of the year Promising Agripreneur of the Year Agribusiness Social Entrepreneur of the Year CSR Agribusiness company of the Year Agribusiness Customer Service company of the Year Agribusiness Brand of the Year Agribusiness Local Content Award Livestock Company of the year Aquaculture Company of the year Agribusiness Export Company of the year CropLife Company of the year Fruit Value chain Company of the year Vegetable Value chain Company of the year Agribusiness Product of the Year Agribusiness Leadership Personality of the year and more agribusiness industry specific awards.
Africa Agribusiness Excellence and Leadership Awards 2023
Africa’s Agro Industry and Food Systems Most Recognized and Prestigious Awards Event.
Successful farming and agribusiness operations require more than just financial resources. You must be aware of your current situation and plan for the future.
Successful farming and agribusiness operations require more than just financial resources. You must be aware of your current situation and plan for the future. While every farm is different, there are several essential characteristics that set successful farms apart from those that are not.
Patience
There is a process in every procedure, and business is not different. Be patient, nothing good or successful happens overnight. It takes time to develop, so give your company plenty of time to learn about it, comprehend it, and allow it to expand gradually.
Patience is one of the four pillars of entrepreneurship, along with persistence, perseverance and passion. For any farmer, the correct degree of patience enables him or her to make prudent decisions to be emotionally detached from their choices, and to support their choices with reasoning and evidence.
Consistency
As a farmer or business owner in the agricultural industry, it is critical that you maintain consistency in the kind of product or service you offer. The quality of the goods you are selling extends to operational details like opening hours. Follow through on that. When do you close for the day? Be consistent with that, as well as with your processes and procedures so that your customers know what to expect when they visit your shop, business or farm.
Hard work
There is no shortcut around hard work. You need to work hard when you sit down every evening and strategise about your business. You must put in the effort, give your business everything you have got and never sleep like you have nothing to lose. Ask yourself what you can possibly accomplish and what you can change in this situation, in your opinion. Have a daily plan for your company, but even if it is only to keep things going or on an annual basis, put all of your efforts into it and you will watch your company flourish.
Get connected
Who you know can also help you get forward in the farming business. Keeping in touch may assist you in staying on top of market trends. One way is to network with other farms, associations and groups, but another is to interact with specialists through many platforms, including the social media. There are numerous places where you may learn more about your clients, their needs and other interesting business advancements. Make sure that you are present to learn such best ways.
Stay tech savvy
Technology is creating new opportunities. As a result, it is critical to become acquainted with your smart-phone, apps, websites and other internet resources. They can make your life easier and your business run more smoothly.
The CEO of the Chamber of Aquaculture, Mr. Jacob Adzikah has revealed that his office is collaborating with the Volta River Authority to disseminate information to the farmers and the people living along the stretch of the Volta River on further spillage to avert such tragedy in the future.
He said this when the Chamber of Aquaculture, the fisheries commission, and some of the stakeholders of the aquaculture industry paid a visit to the communities to ascertain the level of mayhem caused by the spillage.
According to him, if information had been disseminated earlier, fish farmers would have prepared, emptied their inland ponds, and saved their cages before the spillage. The VRA could have done better by informing the communities of the volume of the river to be spilled as against previous years.
He mentioned that lack of communication on specific times and the volume of the river spilled has aided this effect on the farmers, however, the chamber is key to collaborating with VRA to share the right and the needed information to enhance awareness creation.
The spillage has wrecked a lot of communities leaving the residents homeless, and jobless. This has caused a huge economic crunch leading to hunger among the farmers.
Although this is not the first spillage from the dam, this year’s spillage is disastrous. A lot of homes, inland ponds, and fishing cages have been destroyed leaving the people in a state of penury.
He assured that the Chamber had a discussion with VRA during the incident and analysed the effect and possible ways to avert such a disaster in the near future. Regarding the outcome of the discussion, he said the chamber raised concerns about the delay in information delivery to the residence.
“We are optimistic VRA will cooperate with us on this matter so the needful will be done to avert such disaster. I am dumbfounded to see my colleague farmers in this situation, this could have been managed if information had reached them earlier. As a key stakeholder, the Chamber would make sure the farmers receive the right information at the right time to mitigate this kind of disaster”, he bemoaned.
The Founding President of the Worldwide Miracle Outreach, Dr. Lawrence Tetteh has identified the problem with the spillage of the Akosombo Dam to be purely technical.
According to the televangelist and philanthropist, there is a serious technical deficiency which has been highlighted in the manner in which the dam was spilled.
“The problem with the spillage of the Akosombo Dam is technical. We have to look at it technically otherwise we will be living in a fools paradise. Didn’t we know that after some time the Dam will be full? When the Akosombo Dam was built, my understanding is that there were supposed to be canals that would have kept some of the water like it’s done in Amsterdam, England and other parts of the world but those canals were not done, the London School of Economics Economist stated in an interview on Starr Chat on Starr FM with Bola Ray on Wednesday”, he said.
He added: As we speak today if care is not taken, one day, the whole of Tema will be swept away, remember that water is a heavy thing. So, we need to look at the spillage problem holistically. I have been very concerned about the way we are trying to politicise the situation because people’s lives are at stake.”
Many residents in communities in the North, South, and Central Tongu districts of the Volta region were forced to flee due to floods brought by the overflow from the Akosombo and Kpong hydro dams, and they were left with no alternative but to temporarily relocate into improvised constructions.
The residents displaced by the Akosombo Dam spillage in Asuogyaman District in the Eastern region are calling on the Volta River Authority (VRA) and the government to help resettle them.
The spillage began on September 15, 2023, causing significant damage to several communities along the Volta river. Fish farming on the river which is source of livelihood for residents destroyed incurring huge investment losses.
Experts are warning that due to climate change, over 26,000 residents affected by the Spillage should avoid reoccupying these vulnerable areas.
However, the affected residents in Asuogyaman District are urging the VRA and the government to provide them with lands on higher ground for resettlement.
Torgbe Dusornu II, chief of Abume one of the affected communities told Starr News “those that have been affected should not stay there again so there are places near the town but only VRA can allow to build houses so if they can allow us, there are some places those the water have been affected can move if VRA can allow us to come nearer to the Akosombo township”.
Zikpoto Simon Hitorvi, traditional leader affected in Kokonte Kpedzi also shared similar sentiment “this disaster has never happened before so VRA or government should allow us relocate to high ground so that next time when the dam is spilled we are not affected .The lands around are for VRA so they can give us land to relocate to”.
Gladys Duro one of the victims stated that “We are appealing to government to build houses for us to relocate. Because our buildings have been collapsed as we speak one of my children who was injured during collapse of the building is still on admission so we beg government”
Meanwhile, the Member of Parliament for Asuogyaman, Thomas Ampem Nyarko, has pledged to mobilize fellow Members of Parliament in the affected areas to support the call for the VRA and government to take action in resettling the victims.
“I will continue to remind them that when the water recedes they should not go back to build very close to the river again because today they have seen the extent to which the water can go if VRA decides to spill. So they should find spaces uphill to put up their buildings once they have access to their Canoes and get on the water for their normal businesses that should be enough .With regards to their inability to get land I think we can all facilitate that if they need alternative places we can talk to VRA and ensure that all the affected persons are given places to resettle which will be better than where they are currently”.
It’s worth noting that since the disaster, the victims in the Asuogyaman District have not received any relief support from the state whiles corporate organizations and individual philanthropists turn attention to Volta region specifically North Tongu.
However, there have been some generous contributions, including a donation from Former President Mahama and support from few private companies.
Asuogyaman Company Limited on Friday October 26,2023 donated truckload of food items worth Ghc10,000 to the victims while Vodafone Ghana Foundation also stepped in to provide essential relief items, including food, mattresses, sanitary pads, tents and more, to assist those affected by the dam spillage.
During this challenging time, the Member of Parliament for Asuogyaman Thomas Ampem Nyarko emphasized the need for increased collaboration between the VRA and members of Parliament along the Volta River on decision that affected the people.
He bemoaned that VRA has for many years sidelined MPs in its catchment areas in their activities.
