Ghana held an emergency meeting as the price of cocoa plunged to the lowest level in years, highlighting the vulnerability of many African nations to swinging commodity prices.
Cocoa prices rose consistently for half a decade, boosting the fortunes of Ghana and other West African producers. However, softer recent demand has sent prices crashing, dragging regional economies down.
The sudden peaks and troughs highlight how Africa is at the mercy of global commodities markets, Semafor Africa’s managing editor argued. “The wild price swings,” including for metals and minerals, “only serve to hammer home how the continent could ride a commodity boom, or be wrecked by a commodity bust,” Alexis Akwagyiram wrote.
