IVORY COAST: Prices shoot up in Abidjan markets -- as political crisis spills into economy

Record ID: 181847

  • Title: IVORY COAST: Prices shoot up in Abidjan markets -- as political crisis spills into economy
  • Date: 25th December 2010
  • Summary: ABIDJAN, IVORY COAST (DECEMBER 23, 2010) (REUTERS) VARIOUS OF WOMEN BUYING TOMATOES IN ADJAME MARKET VARIOUS OF PEOPLE IN MARKET PILE OF POTATOES IN MARKET VARIOUS OF MARKET TRADER AMADOUN DAHOGO WITH CABBAGES
  • Embargoed: 9th January 2011 12:00
  • Keywords:
  • Location: Cote d'Ivoire
  • Country: Ivory Coast
  • Topics: Economic News
  • Reuters ID: LVA6IRBYVVN2PA0MOC351MDYWUWD
  • Story Text: Prices are soaring skywards in Ivory Coast, as a violent political power struggle in the West African nation has begun to take its toll on the country's economy.
    On Thursday (December 24) West Africa's central bank cut funds to Ivory Coast's incumbent Laurent Gbagbo, adding to pressure on the defiant leader to step down after a disputed poll that world powers and neighbours say he lost.
    An election on November 28 was meant to end the debilitating crisis that has plagued the world's top cocoa grower since a 2002-3 war split it in two, deterring investment and hampering growth.
    Instead, it has merely deepened it.
    The power struggle between Gbagbo and his rival, Alassane Ouattara, over who won the election has escalated into a dangerous standoff -- shutting down business and disrupting transport.
    "Since the crisis the market is strange, all the prices have risen like that, in an instant, everything is now expensive. We can't even buy in the produce anymore. One kilo of cabbage now costs 800 FCFA ( 1.8 USD), really, we can't even do our market shopping anymore, and there are no more trucks bringing in the produce," said Amadoun Dahogo, a cabbage seller in Abidjan's Adjame market.
    While some shops have tentatively re-opened since protests and lethal gun battles between supporters of each camp erupted last week, many shop owners and residents are still too scared to leave their homes.
    "We'd like the crisis to be over, that's our problem, because if the country is not stable we can't come here to sell our produce. Who will come out to buy things? There aren't even any clients," said another market trader, Binta Traore, who earns her living selling pineapple.
    World powers and African states have thrown their support behind Ouattara who has set up a parallel government based in a lagoon-side Abidjan hotel, heavily guarded by U.N. peacekeepers.
    The United Nations General Assembly has recognised the challenger as the legitimate president.
    And a statement from the West African Central Bank, issued after a meeting of ministers in Guinea Bissau, said that only appointed members of the "legitimate government" would be permitted to access funds held in the central bank's accounts.
    Heads of state of the West African regional body ECOWAS plan to hold an emergency meeting in Abuja on Friday - the second in two weeks.
    Before the crisis, Ivory Coast was a haven of peace and prosperity in a troubled region.
    Its multi-lane highways, tall buildings and hotels, all surrounded by forests of palm trees, were the envy of neighbouring countries.
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