The CEO of Ohene Cocoa is optimistic Ghana can take advantage of the trade agreement and export processed cocoa to more African countries
Nana Aduna II, chief executive of Ohene Cocoa, believes Ghana can leverage on the African Continental Free Trade Area (AfCFTA) to refine and export cocoa products to more African countries.
Speaking to Prince Moses on Business PM on Tuesday, Aduna II said Ghana stands to rake in more revenue from exporting refined cocoa rather than in its raw state.
“One of the big advantages we have, rather than sending the product to Europe for them to redistribute to other parts of the world, we have the opportunity to sell to ourselves right on the continent,” he said.
He also added: “We were not doing enough with our raw cocoa that we have and the true real money is actually in the processing and the value addition, not in the raw beans.”
Justification for value addition
The CEO of Ohene Cocoa is optimistic Ghana can increase the value it gets from the raw beans if there is enough commitment to get most of the raw cocoa processed for export under AfCFTA.
“So just imagine that we are producing hundred percent of these stuff, somebody takes it from us and put in a little of just of it into something and then marks it up by so much, so how come we won’t complain that we get only 5% of the total value?”
“Just go to any restaurant or hotel and go and ask for a cup of hot chocolate, you will not get it less than GHS10 or GHS15. So, just look at the mark up from sachet that contain less than 5% of cocoa to the mark up price of GHS20 for a cup of hot chocolate,” he remarked.
Huge continental market
On 17 August last year, President Akufo-Addo commissioned and handed over a fully furnished African Continental Free Trade Area Secretariat to the chair of the African Union Commission, Moussa Faki Mahamat, and the AfCFTA secretary general, Wamkele Mene, in Accra.
The Commission will administer the free trade agreement, which has created a single market of 55 members with a combined population of 1.2 billion and total gross domestic product of roughly US$2.5 trillion.
All 54 sovereign nation states of Africa have signed the agreement and 30, including Ghana, have ratified the deal.
Stay tuned to Asaase Radio throughout the month of February as we bring you reports, documentaries and insightful interviews on personalities and developments in the cocoa sector as part of our month-long celebration of chocolate: the Cocoa Affair.