ABIDJAN, Côte d’Ivoire – An Africa Cocoa Exchange would revolutionize cocoa marketing in Africa and bring positive impact to achieving a sustainable world cocoa economy. Recognizing that a “commodity exchange is an inclusive but market-friendly and financially sustainable solution for imposing structure on Africa’s often fragmented agricultural value chain”, the International Cocoa Organization (ICCO) commissioned a study to assess the technical feasibility and financial viability of establishing an Africa Cocoa Exchange (or AfCX for short).
The feasibility study was split into two phases (Phase I and Phase II) to allow for a constructive stakeholders’ engagement and a systematic and logical approach to identifying a suitable exchange model that is appropriate for Africa.
Phase I of the study involves:
- A detailed analysis of the cocoa value chain and sectoral regulations in Côte d’Ivoire, Ghana, Nigeria, and Cameroon
- A detailed assessment of the Africa commodity exchange experience through a survey of Africa’s currently operational commodity exchanges
- Identification of a limited set of institutional design options of a commodity exchange with three components of spot, derivative and finance
- Engaging stakeholders for selection of an appropriate model of an Africa Cocoa Exchange (AfCX) for a deep dive analysis in Phase II of the study
Phase II of the study involves:
- Defining the interfaces between spot, derivatives, and financing components of the AfCX
- Specifying the functional and infrastructural scope, resources, workflows, and frameworks of the AfCX
- Articulating the role of AfCX with respect to the wider environment (sectoral regulations, institutional regulations, physical markets, and terminal markets)
- Pilot testing of the AfCX to demonstrate proof of concept.
The Phase I of the study has been completed and the reports are now available to the public for download here. The main report of the feasibility study commissioned by the ICCO should be read together with its five appendixes.
