News / Africa

Ivory Coast Crisis Puts a Chill on the Economy

A vendor arranges cucumbers at a market in Abidjan (file photo)
A vendor arranges cucumbers at a market in Abidjan (file photo)

The violent political showdown that has gripped Ivory Coast since last month's disputed presidential election is taking its toll on the country's citizens and its economy.

For residents of Ivory Coast's commercial capital, Abidjan, celebrating Christmas this year, an atmosphere of caution and vigilance has replaced typical holiday cheer.

Last month's presidential poll was meant to heal more than a decade of internal division and restore the world's top cocoa grower to its former prosperity.

Instead, it is has led to a violent political power struggle that has only deepened economic troubles and looks dangerously close to reigniting a 2002-2003 civil war.

Incumbent president Laurent Gbagbo refuses to cede power to Alassane Ouattara, who the United Nations and much of the international community recognize as the winner of the Nov. 28 presidential run-off.

Reuters reports that the crisis has shut down businesses, disrupted transport and pushed up prices.

Amadoun Dahogo, who sells cabbage at an Abidjan market, says everything is more expensive and there are no more trucks bringing in produce.

Dahogo says there is a lot of movement in the country at the moment, some say they have two presidents, others say they only have one president. As long as the elections are not finished properly, he says, we do not know how we are going to sell our produce.

Since opposition protests against Mr. Gbagbo last Thursday turned violent, the United Nations says more than 170 people have been killed.

In the country's commercial capital, Abidjan, Reuters reports that many shop owners are still too scared to resume work.   

Pineapple seller, Binta Traore, says they would like the crisis to be over. She says if the country is not stable, they cannot sell their produce. She says there are not even any clients. Who will come out to buy things, she asks.

U.N. endorsed election winner, Alassane Ouattara, remains holed up in an Abidjan hotel under the protection of U.N. peacekeepers and former rebel fighters.

Mr. Ouattara's prime minister has called for the international community to consider removing the increasingly defiant incumbent by force, though that is not the former IMF official's only strategy. Mr. Ouattara and the international community are also dialing up the financial pressure on Mr. Gbagbo.

The World Bank froze $800 million in committed financing for Ivory Coast Wednesday.

On Thursday, the West African Central Bank granted Mr. Ouattara's request to block Mr. Gbagbo's access to funds. The 7-member regional bank said it would allow only Mr. Ouattara's government to access the money, calling Mr. Ouattara the "legitimately elected president."  

Some speculate that Mr. Gbagbo will soon no longer be able to pay the salaries of civil servants and government troops who currently support him, though salaries for the month of December were, in fact, paid in time for Christmas.

Africa security analyst, J. Peter Pham of the New York-based National Committee on American Foreign Policy, says it remains to be seen whether the international community has the political will to hit Mr. Gbagbo's pursestrings with more drastic, and perhaps more uncomfortable, measures. For example, a cocoa embargo.

The Ivorian government taxes cocoa heavily, Pham said, and most of the country's supply is grown in the southern and western regions under the control of forces loyal to Mr. Gbagbo.

"That being said however, prices are very volatile. The market is very tight. Most of the companies -- European and American are the major consumers of the Ivorian production -- won't thank their governments for cutting them off from the supply which puts them at a commercial disadvantage with competitors," said Pham.

Ivory Coast produces 40 percent of the world's cocoa supply. The current political crisis has pushed cocoa prices to recent four-month highs but has so far not dramatically interrupted delivery.

You May Like

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the US are seeing gas prices dip below $3 a gallon More

Afghan Women's Soccer Team Building for the Future

A four-team female league was recently set up in Kabul; It will help identify players for the national team More

Video Koreas on Edge Amid Live-fire Drills

Pyongyang threatens nuclear test as joint US, S. Korean exercises show forces’ capabilities More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
New Skateboard Defies Gravityi
X
November 21, 2014 5:07 AM
A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video New Skateboard Defies Gravity

A futuristic dream only a couple of decades ago, the hoverboard – a skateboard that floats above the ground - has finally been made possible. While still not ready for mass production, it promises to become a cool mode of transport... at least over some surfaces. VOA’s George Putic reports.
Video

Video Falling Gas Prices Impact US Oil Extraction

With the price of oil now less than $80 a barrel, motorists throughout the United States are benefiting from gas prices below $3 a gallon. But as VOA’s Kane Farabaugh reports, the decreasing price of petroleum has a downside for the hydraulic fracturing industry in the United States.
Video

Video Tensions Build on Korean Peninsula Amid Military Drills

It has been another tense week on the Korean peninsula as Pyongyang threatened to again test nuclear weapons while the U.S. and South Korean forces held joint military exercises in a show of force. VOA’s Brian Padden reports from the Kunsan Air Base in South Korea.
Video

Video Mama Sarah Obama Honored at UN Women’s Entrepreneurship Day

President Barack Obama's step-grandmother is in the United States to raise money to build a $12 million school and hospital center in Kogelo, Kenya, the birthplace of the president's father, Barack Obama, Sr. She was honored for her decades of work to aid poor Kenyans at a Women's Entrepreneurship Day at the United Nations.
Video

Video Gay Evangelicals Argue That Bible Does Not Condemn Homosexuality

More than 30 U.S. states now recognize same-sex marriages, and an increasing number of mainline American churches are blessing them. But evangelical church members- which account for around 30 percent of the U.S. adult population - believe the Bible unequivocally condemns homosexuality. VOA's Jerome Socolovsky reports that gay, lesbian, bisexual and transgender evangelicals are coming out. Backed by a prominent evangelical scholar, they argue that the traditional reading of the bible is wrong.
Video

Video Ebola Economic Toll Stirs W. Africa Food Security Concerns

The World Bank said Wednesday that it expects the economic impact of the Ebola outbreak on the sub-Saharan economy to cost somewhere betweenf $3 billion to $4 billion - well below a previously-outlined worst-case scenario of $32 billion. Some economists, however, paint a gloomier picture - warning that the disruption to regional markets and trading is considerable. Henry Ridgwell reports from London.
Video

Video Mexico Protests Escalate Over Disappearances

Protests in Mexico over 43 students missing since September continue to escalate, reflecting growing anger among Mexicans about a political system they view as corrupt, and increasingly tainted by the drug trade. Mounting outrage over the disappearances is now focused on the government of President Enrique Pena Nieto, accused of not doing enough to end insecurity in the country. More from VOA's Victoria Macchi.
Video

Video US Senate Votes Down Controversial Oil Pipeline - For Now

The U.S. Senate has rejected construction of a controversial pipeline to transport Canadian oil to American refineries. The $5 billion project still could be approved next year, but it faces a possible veto by President Barack Obama. As VOA’s Michael Bowman reports, the pipeline has exposed deep divisions in Congress about America’s energy future.
Video

Video Can Minsk Cease-fire Agreement Hold?

Growing tensions between government troops and separatists in eastern Ukraine further threaten a cease-fire agreement reached two months ago in the Belarusian capital of Minsk. Critics of U.S. policy in Ukraine say it is time the Obama administration gives up on that much-violated cease-fire and moves toward a new deal with Russia. VOA's Scott Stearns has more.
Video

Video Chaos, Abuse Defy Solution in Libya

The political and security crisis in Libya is deepening, with competing governments and, according to Amnesty International, widespread human rights violations committed with impunity. VOA’s Al Pessin reports from London.
Video

Video US Hosts Record 866,000 Foreign Students

Close to 900,000 international students are studying at American universities and colleges, more than ever before. About half of them come from Asia, mostly China. The United States hosts more foreign students than any other country in the world, and its foreign student population is steadily growing. Zlatica Hoke reports.
Video

Video Ferguson Church Grapples with Race Relations

Many white residents of Ferguson, Missouri, say they chose to live there because of the American Midwest community's diversity. So, they were shocked when a white police officer killed an unarmed black teenager in August – and shaken by the resulting protests and violence. Some local churches are leading conversations on how to go forward. VOA’s Ayesha Tanzeem reports.

All About America

AppleAndroid