CGD in the News

The Swiss Commodities Connection in African Poverty (Reuters)

June 27, 2014

From the article:

On Switzerland's opaque influence in Africa and the billions it could be costing the continent in commodity trade:

"A platinum price rise would have benefited South Africa's economy ultimately, at least to the extent that South Africa's export prices - and related declarations for profit tax and royalties - reflect actual market prices," said Alex Cobham of the Centre for Global Development.

He said there were two ways in which prices might have been depressed during the strike.

"If Switzerland's freezones contain major but uncertain platinum holdings then the market price may not reflect the true nature of supply and demand," he said.

"And second, if as we have shown, commodity exporters appear to receive systematically lower prices when trading with Switzerland than other partners, which Swiss opacity facilitates," he said.

Read the article here