Cocoa: SGBCI launches “price risk coverage” offer on the Ivorian market

Jul 24, 2018 | Financial Afrik

SGBCI, the general banking company in Côte d’Ivoire, presented this July 19, through its regional market room based in Abidjan, a new offer on “cocoa price risk coverage” for SMEs and small businesses. exporting cooperatives of coffee and cocoa from the local market.

The objective of this solution is to allow customers to “adapt to the fluctuations of cocoa prices in the global market and thus secure their exports” succinctly explained the bank in a statement.

This offer, which is associated with financing as part of the cocoa campaign, provides an alternative to these small pouches of export, more exposed to the volatility of international prices. Since November 2016, cocoa prices have fallen by around 35% and have not yet reached record levels.

This situation was at the root of the default contracts recorded during the 2016-2017 campaign, partly due to SMEs and exporting cooperatives that were no longer able to honor their commitments.

Defects that had all the same cost the bagatelle of 185 billion FCFA, or 282 million euros, the Coffee Cacao Council according to an audit report of the firm KPMG from last March.

Source: Financial Afrik