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Managing commodity price volatility in Africa

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Publication date
13/09/2011
Number of Pages
8
Language:
English
Type of Publication:
Working Papers & Briefs
Focus Region:
Sub-Saharan Africa
Focus Topic:
Market / Trade
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk coping
Commodity:
Crops
Author
Thouraya Triki, Youssef Affes
Organization
African Development Bank (AfDB)
  • Africa’s exposure to different commodity classes require differentiated strategies to address the problem of commodity price volatility. The “onesize-fits-all” approach should be avoided. More attention should also be given to the problem of speculation and to non-oil commodities.
  • Management of commodity price volatility should not be restricted to a single strategy in order to fully benefit from all available options while reducing their limitations to a minimum.
  • Interventions should not be limited to the supply side but also cover the demand side: capacity building and technical assistance are as important as the development of derivatives markets.