IVORY COAST – The West African Development Bank (BOAD) has approved a short-term loan of 15 billion CFA francs (US$25.5 million) to support Ivory Cocoa Product (ICP), a major player in Côte d’Ivoire’s cocoa processing industry.
The loan will be used to purchase 7,500 tons of cocoa beans for the 2024-2025 cocoa season, according to the financing institution.
With an annual grinding capacity of 80,000 tons, ICP ranks third among the country’s cocoa processors. The BOAD’s financial backing is expected to help maintain 170 permanent jobs and support around 5,000 indirect jobs within the sector.
Côte d’Ivoire, the world’s largest cocoa producer, has around 2 million producers involved in the cocoa sector, which is a vital source of income for millions of people.
Cocoa contributes approximately 20 percent to the country’s GDP, accounts for 45 percent of export earnings, and supports over 6 million people.
The government is working to strengthen local cocoa processing to add more value to the sector and boost economic growth.
In 2023, Côte d’Ivoire’s cocoa export revenues exceeded 2,000 billion CFA francs (US$3.4 billion), making cocoa the largest source of foreign exchange for the Ivorian economy.
To further support local exporters, the government is considering a 10 billion CFA francs (US$17 million) annual subsidy over the next four seasons, starting in 2024/2025.
The goal is to enhance the capacity of local exporters to handle 25 percent of the cocoa harvest, equivalent to 500,000 tons per year.
This financial boost comes as local operators, who previously received an incentive of 3 billion CFA francs (US$5M) to purchase between 150,000 and 200,000 tons of cocoa annually, aim to expand their role in a market dominated by six multinational companies.
Meanwhile, the Ivorian government has raised the fixed farmgate price paid to cocoa farmers by 20% to 1,800 CFA francs ($3.09) per kg for the main crop of the new season.
The world’s top cocoa grower will begin its 2024/25 cocoa season on Oct. 1.
This follows an earlier move by Ghana as both countries seek to help sustain the sector and boost farmer incomes.
The government has also increased the guaranteed minimum price for coffee farmers to 1,500 CFA francs ($2.57) per kg from 900 CFA francs last season to encourage production amid adverse weather conditions and plant diseases.
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