Sustainability, value addition and women's potential in Africa's cocoa industry

Côte d'Ivoire and Ghana are the leading global cocoa producers, accounting for more than 60 percent of the world's cocoa supply, but the sector faces challenges such as climate change, income inequality, and limited value addition. Joy Wanjiru Machugu-Zenz, the CEO of African Women in Trade (AWT), recently sat down with CNBC Africa to discuss efforts underway to address these challenges and the significant role women play in improving the local processing and supporting smallholder farmers in the cocoa value chain. In 2024, global cocoa prices surged significantly, with reports indicating an increase of up to 105 percent since the beginning of the year. This spike is primarily due to supply shortages caused by various weather conditions in West Africa, particularly in major producers like Côte d'Ivoire and Ghana. Climate change-induced droughts and reduced yields have led to the lowest cocoa production levels in 22 years. Despite these challenges, global demand for cocoa production remains robust, exacerbating the supply-demand imbalance and driving prices higher. To retain more value from their cocoa exports, African countries can adopt strategies to enhance local processing and manufacturing. By investing in local processing facilities to produce semi-finished products like cocoa butter, paste, and powder, countries can capture more value than exporting raw cocoa beans. Implementing favorable policies, providing incentives for private investments, and supporting infrastructure growth in the local cocoa industry can lead to job creation and increased revenues. Women play a crucial role in the cocoa industry, with 70 percent of traders being women. However, women often face barriers such as limited access to land, credit, market, and decision-making roles within the value chain. To support women's participation in high-value activities, government organizations should implement gender-sensitive policies, provide targeted market programs, facilitate access to financial services, and create a conducive environment for women and their children. Initiatives like offering childcare facilities and healthcare services can further support women in the industry. Sustainability is essential in the cocoa industry, with certifications like Rainforest Alliance working to improve farmers' livelihoods and promote ethical cocoa production. While these programs aim to ensure fair prices, better labor conditions, and environmental protection, their effectiveness may vary due to certification costs and limited market access. Continuous evaluation and adoption of such programs are crucial to address the needs of cocoa farmers and promote sustainable production practices. Joy Wanjiru Machugu-Zenz also highlighted the upcoming Intra-Africa Cocoa and Chocolate Coffee Trade Week in Nairobi, where traders, buyers, sellers, and investors will convene to discuss intra-trade solutions within the continent. The event aims to promote trade among African countries and explore opportunities for selling cocoa and coffee products within the region. Given the impact of climate change on cocoa production, efforts are underway to help farmers adapt to the evolving challenges. Measures such as developing climate-resilient cocoa varieties, implementing agroforestry practices, and providing training on sustainable farming techniques are being pursued. Organizations and governments are investing in research and infrastructure to support farmers in building resilience against the diverse effects of climate change on cocoa production.