Industrialization remains a major challenge for the ongoing structural transformation of the economy. To meet this challenge, several policies, reforms, strategies, and structural projects have been implemented to ensure the full development of the industrial sector in Côte d'Ivoire, particularly the processing of its agricultural raw materials.

In fact, the agri-food sector is a key component of the manufacturing industries and constitutes the backbone of the structural transformation of the economy. Indeed, the country has significant potential for diversifying its industrial fabric through the processing of its main agricultural raw materials (cocoa, coffee, cashew, sugar, palm oil, mango, pineapple...) which would also stimulate the development of other manufacturing industries (cosmetics, tires, chemicals, textiles, pharmaceuticals, biofuels...).

Based on the potential of the agricultural sector in Côte d'Ivoire, the Ivorian government has identified agri-food as one of the seven (07) industrial clusters to be developed.

The goal is to achieve an integrated development of the agri-food chain to enhance its contribution to growth, the creation of decent jobs, as well as to reduce the import bill for food products, and to diversify and increase exports. This will involve:

  • Upstream, developing the industries for manufacturing inputs (fertilizers and small agricultural production tools);

  • Downstream, developing the industries for processing agricultural products for domestic consumption and for export, and distribution/marketing services for the products;

  • Cross-support, developing research services, financing instruments for production and investment, transport, and distribution of products.

Operationally, the realization of these ambitions will go through (i) increasing production and industrial competitiveness, (ii) developing industrial zones, and (iii) improving quality and strengthening the fight against counterfeiting.

Thus, measures and incentive actions have been taken by the government to increase local agri-food production and stimulate investments. These include, among others:

  • The adoption of Ordinance No. 2020-09 of January 8, 2020, reducing the single exit duty rate applicable to products from cocoa processing companies, which allowed the signing of seven (7) agreements with cocoa grinders accompanied by commitments;

  • The adoption of Ordinance No. 2019-587 of July 3, 2019, instituting tax incentive measures in the cashew processing sector, which allowed the signing of 35 agreements with cashew processors accompanied by commitments;

  • The adoption of Ordinance No. 2019-826 of October 9, 2019, instituting specific tax incentive measures for investments made in the rubber processing sector, which allowed the signing of 28 agreements with processors accompanied by commitments;

  • The adoption and implementation of Ordinance No. 2022-536 of July 16, 2022, instituting specific tax incentive measures for investments made in the agricultural production and processing sectors (food crops and legumes).

  • Agri-food in numbers

The agri-food sector is the leading branch of the secondary sector in terms of value added, with a share of 28.8% in 2015. In 2023, it still holds the top position with a share of 24.8%. Its value added increased from 1,572.1 billion in 2015 to 2,909.9 billion in 2023, with an average growth of 12.2% per year.

 

Source : MEPD/ANStat, MEPD/DGE, MCI

Value added in the secondary sector

 

2015

2016

2017

2018

2019

2020

2021

2022

2023

Secondary Sector

5,450.2

5,972.8

6,040.0

6,212.5

7,656.7

7,510.3

8,922.3

10,341.6

11,744.9

Mining

895.2

911.9

967.6

799.3

1,167.1

1,103.8

1,190.2

1,352.8

1,454.8

Agri-food Industries

1,572.1

1,913.5

1,926.7

1,945.1

2,122.4

2,114.8

2,426.4

2,650.4

2,909.9

Petroleum Products

124.2

273.8

175.9

347.0

595.7

493.3

924.9

1,470.3

1,817.3

Energy (Gas and Electricity)

239.4

318.5

267.2

436.6

541.6

483.1

573.2

638.7

788.4

Construction

1,219.5

1,144.2

1,364.5

1,306.3

1,589.4

1,551.2

1,750.9

2,058.6

2,281.3

Other Manufacturing Industries

1,399.8

1,410.8

1,337.9

1,378.1

1,640.6

1,764.1

2,056.7

2,170.8

2,493.2

Sources :MEPD/ANStat, DGE

The agri-food sector is dominated by four (04) segments, namely cocoa and coffee products (32%); oilseeds (23%); dairy products and products based on fruits and vegetables (21%); as well as beverages (10%), representing more than 85% of the sector's turnover in 2017. The remainder consists of cereal products (7%), processed meat and fish products (5%), and tobacco (2%).

The priority sectors of the government in terms of agri-food processing are cocoa, coffee, cashew, palm oil, fruits and vegetables (mango, pineapple, dessert banana, etc.) and sugar.

  • Cocoa Processing

The government's objective is to locally process at least 50% of cocoa bean production by 2030 and to develop the production of chocolate and other finished cocoa products.

In 2023, the sector has 11 active companies with 13 industrial units, not including projects nearing completion. Thus, from 2017 to 2023, the overall grinding capacity of installed units increased from 730,000 tons to 972,040 tons, representing a growth of 33.2%. This capacity is expected to reach 1,112,040 tons in 2024, with the completion of construction works for the TRANSCAO and JB COCOA factories in Abidjan, the expansion works of TRANSCAO SEWEKE, Atlantique COCOA CORPORATION, and the rehabilitation of the former SUCSO factory by SITC in San-Pedro. These major ongoing industrial projects indeed involve an installed capacity of 140,000 tons.

The main players in the sector are SACO (Barry Callebaut Group, 27%), Olam (22%), CARGILL (17%), Cemoi (10%), Ivory Cocoa Product (3.5%), Choco-Ivoire (3.5%), and others (17%).

The volumes of processed beans increased from 576,994 tons in 2017 to 790,800 tons in 2023, representing an average annual increase of 6.2%. As for the processing rate, it is progressing towards the 2030 target. It increased from 28.6% in 2017 to 38.5% in 2023.

Table 2: Installed capacity and cocoa processing

Designations

2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

2021-2022

2022-2023

Installed capacities (Tons of beans/Year)

730,000

730,000

800,000

850,000

880,000

930,000

972,040

Quantity ground (Tons of beans)

576,994

559,239

604,817

596,388

619,529

750,247

790,800

Processing rate

28.57%

28.47%

27.41%

27.66%

26.37%

31.26%

38.51%

 Sources :Coffee-Cocoa Council 

  • Coffee Processing

The sector for processing robusta coffee cherries into soluble coffee is dominated by NESTLE with an installed capacity of 9,000 tons and the Carré d’or Group. In 2023, the coffee roasting sector has 32 identified roasters. The volume of processed coffee decreased from 18,870 tons in 2022 to 15,795 tons in 2023, a decrease of 16.3% due to the decline in national production.

Table 3: Coffee Processing

Campaigns

2016-2017

2017-2018

2018-2019

2019-2020

2020-2021

2021-2022

2022-2023

Quantity processed (Tons)

9,768

6,224

12,102

12,035

17,014

18,870

15,795

Processing rate (%)

22

21

13

14.43

27.43

19.88

33.65

 Sources :Coffee-Cocoa Council 

  • Cashew Processing

The cashew sector in Côte d'Ivoire is currently one of the most important agro-industrial sectors due to the country's global positioning in terms of production (1st world producer) and its weight in the national economy (2nd agricultural export product). The government's objective is to achieve a processing rate of 50% by 2030.

Côte d'Ivoire has 34 operational processing units, increasing the nominal overall capacity from 77,384 tons in 2014 to 350,000 tons in 2023. About ten installation projects for units are underway and could increase the processing capacity to 500,000 tons/year by 2025.

The main players are Olam Ivoire (50%), Ivoirienne Noix de Cajou (12%), and SITA (10%).

Cashew nut exports reach about fifty countries across all continents. This performance allows Côte d'Ivoire to be the 2nd largest supplier of cashew nuts globally after Vietnam, in addition to being the 3rd largest processing country for cashew nuts in 2023.

The volume of cashew nuts processed locally increased from 37,696 tons in 2014, representing a processing rate of 6.7%, to 265,863 tons in 2023, with a processing rate of 21.7%.

Table 4: Installed capacity and processing rate of cashew nuts

Designations

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Installed capacities (Tons of cashew nuts/Year)

77,384

95,949

104,500

109,500

167,300

199,300

214,500

214,500

214,500

350,000

Quantity processed (Tons of cashew nuts)

37,696

41,012

40,383

44,628

68,515

57,466

103,101

136,854

224,036

265,863

Processing rate

6.7%

5.8%

6.2%

6.3%

9.2%

9.3%

12.2%

14.1%

21.8%

21.7%

 Sources :Cotton-Cashew Council 

  • Production of crude palm oil and refined palm oil

The Ivorian government aims to position palm oil as a very important sector in the country's economic development.

The palm oil sector is highly concentrated and integrated with 16 agro-industrial complexes regulated by the Interprofessional Association of the Palm Oil Sector (AIPH) and involved in the 1st and 2nd transformation. The main players are PALMCI, Palm Afrique, SIPEFCI, and independent oil mills.

All palm oil production undergoes a first transformation. The volume of palm oil produced increased from 447,200 tons in 2015 to 562,600 tons in 2023.

Table 5: Production of crude palm oil (in thousands of tons)

Designation

2015

2016

2017

2018

2019

2020

2021

2022

2023

Crude Palm Oil

447.2

453.2

482

513.9

535.4

514.5

601.3

541.5

562.6

Sources :Rubber-Palm Oil Council

At the level of the 2nd transformation, the refining capacity of crude palm oil is 2,900 tons per day in 2023. However, there remains potential in the manufacture of much more elaborate products.

The second transformation sector is led by the SIFCA group, through its subsidiaries PALMCI and SANIA and the African Refining Company in Côte d'Ivoire (SARCI). These companies are involved from the cultivation of oil palm plantations to the transformation of crude palm oil into refined palm oil.

The national production of refined palm oil increased from 3,320,000 hectoliters (hl) in 2015 to 3,632,000 hl in 2022, representing an average annual increase of 1.34%.

Table 6: National production of refined palm oil

Designation

2015

2016

2017

2018

2019

2020

2021

2022

Refined Palm Oil (In thousands hl)

3,320

3,634

3,321

6,077

4,918

4,032

3,321

3,632

Sources :MEPD/ANStat, DGE

  • The Sugar Sector

The sugar sector is highly integrated and concentrated, with a duopoly consisting of the companies SUCAF and SUCRIVOIRE, each owning two (02) agro-sugar complexes. The domestic sugar market is protected by a ban on sugar imports except for temporary exemptions from the state (Ordinance No. 2021-299 of June 16, 2021, setting the conditions for importing sugar intended for industrial companies using it as an input).

Local production is 203,720.6 tons in 2023 compared to 198,649.7 tons in 2015. The coverage of national needs increased from 70% in 2016 to 83% in 2023 for an estimated need of 240,000 tons in 2023.

The government's objective is to ensure that these two units enable the country to be self-sufficient in sugar. Consequently, the state has signed framework contracts with sugar producers regarding the increase of national production.

Table 7: Sugar Production (in thousands of tons)

Designation

2015

2016

2017

2018

2019

2020

2021

2022

2023

Sugar Production

198.6

188.0

191.6

186.6

190.6

207.2

180.6

189.8

203.7

Sources :SUCAF and SUCRIVOIRE

  • Processing of Fruits and Vegetables

For the development of fruit and vegetable processing, the government has focused on: (i) promoting the preservation and production of fruit juices and dried fruits, (ii) securing the supply of processing units, and (iii) improving storage and preservation capacity.

The fruit industry is dominated by subsidiaries of French groups such as SELECTIMA, Compagnie fruitière, and the Kablan-Joubin Agricultural Company, which locally process and package fruits into juices before exporting them to Europe. In 2021, the arrival of the TRAFULE Company was noted. This sector is characterized by the abundance and availability of raw materials, particularly dessert bananas (1st African producer), plantains (6th African producer), cola (1st African producer), pineapple, and mango (1st African exporter of fruits to Europe) with a local processing rate estimated at less than 5%.

Regarding mango, with a national production of 180,000 tons in 2023, the processing of dried mangoes increased from 89 tons in 2017 to 593 tons in 2023, representing an average annual growth of 66%. Dried mango is the main avenue for valorizing mango in Côte d'Ivoire as it represents 67% of the total volume of processed mangoes. In 2023, Côte d'Ivoire ranks 1st in Africa and 3rd in the world in mango processing.

  • Perspectives

In the short term, the state plans to accelerate the development of the agri-food sector by:

  • Continuing the rehabilitation and development of industrial zones in Abidjan and inland;

  • Continuing the establishment of industrial clusters in agro-industrial sectors;

  • Continuing the implementation of the Industry 4.0 development project including new technologies;

  • Continuing the implementation of the strategy development program for cashew processing;

  • Continuing support actions for the processing of other agricultural products, particularly cocoa, fruits, and vegetables, etc.;

  • Creating and operationalizing the Industrial Development Fund;

  • Establishing Competitiveness and Industrial Development Support Centers (CACDI);

  • Implementing the innovation and technology dissemination policy;

  • Continuing the valorization of local flours with the implementation of the project related to the production of composite bread using local maize and cassava flours (I2T);

  • Continuing actions related to the development of the West African Accreditation System (SOAC), particularly the establishment of the storage system (SRE);

  • Continuing the formulation and implementation of a Program for Inclusive and Sustainable Industrial Development of the PCP.

Table 8: Indicator of the agri-food industry

 

2015

2016

2017

2018

2019

2020

2021

2022

2023

Share in total GDP (%)

5.8

6.7

6.3

6.0

6.0

5.8

6.0

6.1

6.1

Share in GDP of the secondary sector (%)

28.8

32.0

31.9

31.3

27.7

28.2

27.2

25.6

24.8

Sources :MEPD/DGE