Ivory Coast, Ghana Cancel Cocoa Sustainability Schemes Run by Hershey

Ivory Coast, Ghana Cancel Cocoa Sustainability Schemes Run by Hershey By Ange Aboa and Maytaal Angel

IVORY COAST AND GHANA are cancelling all cocoa sustainability schemes that U.S.-based Hershey runs in their countries, accusing the chocolatemaker of trying to avoid paying a

cocoa premium aimed at combating farmer

poverty.

In a letter addressed to Hershey and seen by Reuters, the Ivorian and Ghanaian cocoa regulators accuse Hershey of sourcing unusually large volumes of physical cocoa on the ICE futures exchange in order to avoid the premium, known as a living income diff erential (LID).

The letter, which also accuses Fuji Oil Holdings' Blommer subsidiary of aiding Hershey, was verifi ed as authentic by spokespeople for the regulators.

Ivory Coast and Ghana, which produce two-thirds of the world's cocoa, said they are also barring third

party companies from running sustainability

schemes in the West African nations on behalf of Hershey.

The schemes certify cocoa as sustainably sourced - meaning its production is free of environmental and human rights abuses, such as using child labour or being grown in a protected forest.

This allows companies to market their chocolate as ethical and charge a premium for it.

Hershey, makers of such popular candy items as Hershey chocolate bars, Hershey's Kisses and Kit Kat, said it is fully participating in the LID and will continue to do so. It sources substantial volumes of supply from West Africa, it added. "Our concern is that by cutting off industry sustainability programs, cocoa farmers will no longer receive the benefi ts provided by our programs... (like) the price premium for certifi ed cocoa," the company said in a statement.

Blommer had no immediate comment.

Several market sources said Hershey had recently struck a deal with the ICE exchange to take physical delivery of a large amount of cocoa, allowing it to buy less from Ivory Coast and Ghana and so avoid the premium.

The West African nations last year introduced a $400 a tonne LID on cocoa sales for the 2020/21 season, but have since struggled to sell their beans as chocolate demand has been hit by the coronavirus-induced recession.

In a separate document seen by Reuters, the world's top cocoa producers said they had withdrawn from membership of a U.S. cocoa industry association, accusing the body of helping companies including Hershey avoid paying the LID.

The Cocoa Merchants Association of America (CMAA http://cocoamerchants.com) is "condoning and conniving with American companies against poor West African cocoa farmers", the document, also verifi ed as authentic by the Ivorian and Ghanaian regulators, read.

The CMAA did not respond to Reuters requests via email and phone for comment.

Ivory Coast and Ghana also said they are reviewing their membership of the Federation of Cocoa Commerce (FCC www.cocoafederation.com), a UK-based international organisation that aims to promote, protect and regulate the cocoa trade. https://fi nance.yahoo.com/news/ivory-coast-ghana-cancelcocoa-145601805.htm Image credit: www.walmart.com/HERSHEY'S

Rwanda Recruits Tidjane Thiam to Boost Kigali’s Finance Off er

AFTER HIS HASTY DEPARTURE from the Credit Suisse bank, Tidjane Thiam confi rms his African ambition. The Franco-Ivorian banker has just been appointed by the Rwandan government to head the Board of Directors of Rwanda Finance Limited.

The appointment, which comes at the same time as six other members, was signed by Rwandan Prime Minister Edouard Ngirente at the end of a cabinet meeting chaired by Head of State Paul Kagame on Wednesday, 11 November, at Village Urugwiro, headquarters of the Rwandan presidency.

Since February 7, when he resigned as managing director of the Swiss banking group, Thiam was fi rst reported to the board of directors of the French luxury holding company Kering, before making a name for himself again on the continent.

Two months later, he became involved in the economic response to the crisis caused by the COVID-19 pandemic, joining the African Union task force – alongside Ngozi Okonjo-Iweala, Trevor Manuel and Donald Kaberuka – in charge of fi nding a coordinated and continental solution to the health crisis. On this occasion, he chaired a working group on the fi ght against COVID-19 with the Rwandan president on 5 June.

Then he made a return, fi rst unoffi cial, then more clearly in politics in Côte d’Ivoire, more than 20 years after leaving the country where he was Minister of Planning and Development.

And he offi cially chose the ranks of the opposition in the Ivorian presidential race, won on November 3 by Alassane Ouattara in a third term.

Promoting the fi nancial sector

A return to business, therefore, for what some consider to be an African fi nancial prodigy. The banker who is credited with the turnaround and restructuring of the second largest Swiss bank, as well as the earlier development of the British insurer Prudential.

Tidjane Thiam is once again extricating himself from the torments of Ivorian politics. And to integrate, in contrast to the continent, a recently created public structure. The Rwanda Finance Limited is the counterpart of the Rwanda Development Board (RDB) – the public agency responsible for attracting foreign investment to the country – and has a mandate to develop the Kigali International Financial Centre (KIFC). The KIFC is a worldclass fi nancial center designed to promote foreign investment and the creation of highly skilled jobs in fi nance for the benefi t of Rwanda and the African continent. www.bansoro.com/rwanda-recruits-tidjane-thiam-toboost-kigalis-fi nance-off er www.theafricareport.com/50498/rwanda-recruitstidjane-thiam-to-boost-kigalis-fi nance-off er Image credit: CEO Tidjane Thiam of Swiss bank Credit Suisse addresses the bank's annual shareholder meeting in Zurich, Switzerland April 27, 2018. REUTERS/Arnd Wiegmann.