Agriculture forms a crucial percentage of the Ivorian GDP, while providing employment opportunity to a huge population. However, the low processing rate of bulk of these agricultural products has led to import dependence. This brings immense opportunities for investors seeking to setup their agriculture processing business in Côte d’Ivoire. Read on to learn more about the different industries in Côte d’Ivoire that holds huge potential:
Cashews
Between 2020-2025, the global raw cashew market is estimated to increase at the rate of 4.27% per annum, owing to increasing consumer demand in countries like Vietnam and India which together make for more than 98% of total demand. Côte d’Ivoire currently ranks number 1 in terms of Cashew exports with its integrated production systems that rely on sustainable agricultural practices. Certain factors are becoming a roadblock in its attempt to further optimise production capacity and increase exports. These include:
- Limited infrastructure facilities.
- Local processors who often lack knowledge regarding certification procedures to thrive in a globally competitive market.
ZIC’s primary aim is to strengthen the existing cashew supply chain by removing these obstacles using strategic infrastructure solutions and incentives to upscale production.
Cotton
Cotton processing is a lucrative opportunity in the world trade market, with the demand for cotton-based products increasing steadily year after year. As one of the top producers of cotton in Africa, Côte d’Ivoire is well placed to take advantage of this growing trend. The country has a rich history in cotton production and is known for producing high-quality cotton that is in high demand globally. With a well-established infrastructure and a favorable business environment, Côte d’Ivoire to become a key player in the cotton processing industry, providing employment opportunities and contributing to the country’s economic growth.
Despite the opportunities presented by the cotton processing industry, Côte d’Ivoire has not been processing as much cotton as it could. There are two main issues that have contributed to this:
Despite the opportunities presented by the cotton processing industry, Côte d’Ivoire has not been processing as much cotton as it could. There are two main issues that have contributed to this:
- Infrastructure challenges: Côte d’Ivoire’s infrastructure, especially in rural areas, is often inadequate, which makes it difficult to transport cotton from the fields to processing plants.
- Limited investment: While the government of Côte d’Ivoire has made some efforts to promote the cotton processing industry, there has been a lack of significant investment in the sector.
The development of the industrial zone will provide a platform for increased investment, attracting local and foreign investors to establish cotton processing plants. The infrastructure within the zone will be built to meet modern standards, with well-paved roads, access to electricity, and storage facilities that will make it easier to transport raw cotton from the fields to processing plants.
Rubber
The global rubber market is projected to reach $51.21 Bn by 2027, with a Combined Annual Growth Rate (CAGR) of 5.3% during the forecast period. Côte d’Ivoire is currently Africa’s largest producer of rubber and 7th largest in the world, making it a crucial export commodity. Most of the country’s rubber exports is registered as Technically Specified Natural Rubber (TSRN) which matches the global demand. However, the sector receives much lower prices for their rubber products, when compared with the global average, due to:
- High processing cost because of tedious logistics and manpower requirements.
- Unsustainable rubber procurement practices inducing environmental damage.
With responsible partnerships with rubber producers and knowledge of cleaner rubber processing practices, ZIC is clamoring for result-oriented rubber production that meets demand without compromising the environment.
Cassava
In 2020, Côte d’Ivoire exported $387k worth Cassava to countries like France, Belgium, Canada, and the United Kingdom. An ongoing increase in the global demand for Cassava starch gives further push to the sector to improve the yield, which currently stands largely under processed. The lack of adequate storage facilities also restricts the sector’s ability to expand further. Current obstacles of the sector include:
- Obstacles to storage and secondary level processing because of lack of precision based industrial solutions.
- Absence of reliable markets.
ZIC has been driving towards strategic partnerships that provide stable pricing and access to market innovations to upscale the sector. We are augmenting the supply chain to reduce costs while giving our partners more time to strengthen their partnerships with their end customers.
Shea seeds
Consumers around the world are much more careful of the ingredients used in their favorite cosmetic products. Shea butter, being a plant-based ingredient extensively grown in West Africa, has gained surging popularity. The increase in vegan lifestyled population and a booming retail industry are further going to increase Ivorian shea seed exports in the future. However, the ongoing increase in demand have not experienced a similar reaction from the supply side in the Ivorian production system due to reasons such as:
- Lack of processing zones to transform karites or shea seed into high value shea butter.
- Lack of awareness about certification to promise competitiveness.
ZIC’s central processing zones are built with the mission to ease the processing of shea butter while ensuring quality standards that match criteria set up developing markets.
Fruit processing
Côte d’Ivoire grows a huge quantity of fruits like Mango, banana, coconut, and pineapple. Despite being the leading fruit producer of West Africa, there is a significant requirement for local processing units to attain self-sufficiency and value addition.
Current problems faced by the sector include:
- Lack of critical storage units to ensure the longevity of fruits and vegetables is hurting the ability of manufacturers to take over larger production volumes
- Unsustainable farming methods leading to low yield per hectare.
ZIC is committed to improving yield and contributing efficiently to stakeholders’ growth. Our dedicated clusters are poles of agro-growth with integrated farm facilities to increase output and efficiency.
Coconuts
Côte d’Ivoire is the leading producer of coconut in West Africa, having exported 11,028 tonnes of coconut oil in 2019 alone. The country produces both varieties including crude coconut, unrefined and refined fractions, and sends it to countries like Burkina Faso, Switzerland, Spain, and Mali.
Mangoes
The production of Mangoes in the country was more than 98,000 tonnes in 2019 with an estimated area of 163,059 hectares under cultivation. More than 90% of the total production comes from small scale farmers. The year-on-year effects of climate change have impacted the yearly yield with the maximum range hovering between 3-7 tonnes.
Pineapples
Côte d’Ivoire dominates the world trade of pineapple, having produced 82,302 tonnes in 2019. The country exported 32,064 tonnes of pineapple in 2019, becoming Africa’s #1 exporter of Pineapple. Average per capita consumption of pineapple is also expected to increase by 3.9 Kg in 2029. The global demand for dried pineapple market is also expected to grow at a CAGR of 4.5% during the forecast period, from 2021 to 2028.
Other Industries
The potential for other industries, such as construction, chemicals, logistics, manufacturing, and pharmaceuticals, in Côte d’Ivoire is vast and largely untapped. The rich abundance of natural resources can provide a solid foundation for the development of these industries.
Pharmaceutical Industries
In Côte d’Ivoire, 6% of pharmaceutical products are domestically produced, while 94% is imported, signifying a huge area for improvement.
Shortened delivery times, improved accessibility and reduced costs can add to the attractiveness of local pharma production. Demand for Pharmaceutical products has seen a major uptick with the expansion of Ivorian population, so much so that pharmaceutical imports are increasing at a CAGR of approx. 3% over the last five years. There also exists a lot of space for local production to succeed and meet domestic demand without facing intense competition from imported products as there is massive need for generic and non-generic medicines in Côte d’Ivoire.
Shortened delivery times, improved accessibility and reduced costs can add to the attractiveness of local pharma production. Demand for Pharmaceutical products has seen a major uptick with the expansion of Ivorian population, so much so that pharmaceutical imports are increasing at a CAGR of approx. 3% over the last five years. There also exists a lot of space for local production to succeed and meet domestic demand without facing intense competition from imported products as there is massive need for generic and non-generic medicines in Côte d’Ivoire.
Logistics
Despite businesses wanting the market forces of demand and supply to interact positively, it is no doubt that managing a stable inventory and maintaining a resilient supply chain is a difficult task. The spillover effects of logistics businesses on multiple aspects of the Ivorian economy are one of the main reasons why it is getting tremendous support from authorities in Côte d’Ivoire. Logistics, as an industry, complements other businesses and helps with reducing costs and speeding up expansion plans. As the Ivorian population continues to expand, the demand for goods and services is also shooting up, making it necessary to check existing processes and fill those gaps with the right solutions that can reduce cost while improving competitiveness of Ivorian goods.
With ZIC, you get access to:
With ZIC, you get access to:
- Streamlined transportation network.
- Readymade customer base of business units operating within ZIC
- Designated dry ports and terminals
