News

Côte d’Ivoire: Audit firm KPMG calls for the establishment of a cash cocoa market to prevent defaults payment

Côte d’Ivoire: Audit firm KPMG calls for the establishment of a cash cocoa market to prevent defaults payment
  • Comments   -   Friday, 27 April 2018 - 19:43

(Ecofin Agency) - In order to stop default in payment in Cote d’Ivoire’s cocoa sector, the international audit firm KPMG is advocating the establishment of a cash market system for local cocoa exporters.

Unlike the futures market, which offers buyers predetermined pre-harvest cocoa contracts, the cash market, also known as the real market, allows for the commodities’ negotiation as well as immediate delivery and payment.

This new system should help limit speculation by small shippers that defaulted on 148,000 tons of cocoa during the 2016/2017 season.

“These defaults in payments occurred when members of SMEX / COOPEX [ed: a major Ivorian coffee-cocoa exporter] tried to compete with largest companies and wanted to increase their revenues by focusing on a rise in cocoa world prices instead of securing contracts,” the firm indicated.

According to KPMG estimates, SMEX / COOPEX‘s members currently purchase 23% of the futures contracts issued by the Coffee-Cocoa Council (CCC).

Espoir Olodo

African Import-Export Bank (Afreximbank) will approve $500 million in financing to Angola, Samuel...
Read more |  16 July 2018
Islamic Development Bank (IBD) committed CFA170 billion to support rice sector in...
Read more |  16 July 2018
Saudi Arabia announces it would invest $10 billion in South Africa. According to...
Read more |  13 July 2018
The Egyptian government awards German Siemens an operation and maintenance contract for...
Read more |  13 July 2018
Senegal’s civil society partnered with the national anti-graft committee (OFNAC) to organize...
Read more |  13 July 2018
The Kenyan government gave the green light to India-based Maharashtra Hybrid Seeds...
Read more |  13 July 2018
The African Development Bank (AfDB) approved July 11 an additional $10 million in...
Read more |  13 July 2018
African Import-Export Bank (Afreximbank) will approve $500 million in financing to Angola, Samuel...
Read more |  16 July 2018
Islamic Development Bank (IBD) committed CFA170 billion to support rice sector in...
Read more |  16 July 2018
Saudi Arabia announces it would invest $10 billion in South Africa. According to...
Read more |  13 July 2018
The Egyptian government awards German Siemens an operation and maintenance contract for...
Read more |  13 July 2018
Senegal’s civil society partnered with the national anti-graft committee (OFNAC) to organize...
Read more |  13 July 2018
The Kenyan government gave the green light to India-based Maharashtra Hybrid Seeds...
Read more |  13 July 2018
The African Development Bank (AfDB) approved July 11 an additional $10 million in...
Read more |  13 July 2018

Copyright Agence Ecofin © 2018. All Rights Reserved.