Ivory Coast to Bolster Small Cocoa Exporters with Increased Subsidies

Ivory Coast's government will boost its support for small local cocoa exporters, aiming to more than double their purchasing volumes. This initiative includes an annual subsidy of 10 billion CFA francs over the next four years to enhance their competitiveness against major multinational players.

Ivory Coast's government will increase its support for small local cocoa exporters to help them more than double their annual purchasing volumes, according to two government sources.

Struggling to secure financing from local banks, Ivorian exporters face tough competition from financially secure international players. With an average production of 2.2 million tons of cocoa beans over the past three years, big multinationals account for around 80% of purchases and exports.

The government will grant small exporters subsidies of 10 billion CFA francs ($16.75 million) per year over the next four years starting from the new cocoa season in October. This aims to increase purchasing volumes to 500,000 metric tons, compared to the previous subsidy of 3 billion CFA francs per year, which supported purchasing volumes of 150,000 to 200,000 tons per season.

'Our aim is to have national champions in the cocoa sector to increase their purchasing volumes, which represent less than 10% of our annual production,' said a source from the prime minister's office. An agriculture ministry official indicated that this financial support should encourage banks to offer loans to small exporters, making them more financially sound.

This aid is timely as the European Union plans to implement new regulations on the import of commodities linked to deforestation, intensifying competition among exporters. Yves Brahima Kone, managing director of the Ivory Coast Coffee and Cocoa Council, urged the government to provide more substantial and sustainable financial support to make Ivorian companies competitive globally.

(With inputs from agencies.)