AfDB approves €100m facility to boost Côte d’Ivoire cocoa and sustainability

The Board of Directors of the African Development Bank Group (AfDB) has approved a €100 million agricultural commodity financing facility for Sucres et Denrées Côte d’Ivoire (Sucden), one of the country’s leading commodity trading firms. The financing is designed to reinforce Côte d’Ivoire’s position as the world’s largest cocoa producer while promoting sustainability, resilience, and inclusion in the agricultural sector.

Financing structure and partners

The facility includes:

• €25 million from the Africa Growing Together Fund (AGTF), a co-financing initiative of the AfDB and the China Development Bank.

• $10 million from the Agribusiness Small and Medium Enterprise Catalytic Financing Fund (ACFM), a special AfDB fund dedicated to stimulating agribusiness financing.

Structured as a renewable two-year arrangement, the facility aims to expand pre-financing for cooperatives and local suppliers, filling critical liquidity gaps in the cocoa sector. This mechanism will provide timely access to credit for farmers and rural communities, improving resilience against both market volatility and climate-related disruptions.

Cocoa: A pillar of the Ivorian economy

Côte d’Ivoire accounts for more than 40% of global cocoa output, with production estimated at 2.3 million metric tons in the 2022–2023 season. Despite adverse weather affecting yields in recent years, the country remains the backbone of global chocolate supply chains and a key player in international commodity markets.

The cocoa industry provides income for millions of Ivorians, particularly smallholder farmers. However, the sector faces persistent challenges, including:

• Low liquidity among cooperatives and producers.

• Vulnerability to climate change, such as erratic rainfall and rising temperatures.

• Exposure to global price fluctuations, which often leave farmers with reduced earnings.

Advancing sustainability and resilience

The new AfDB facility is designed not just to stabilise production, but also to embed sustainability across the value chain. Its objectives include:

• Supply chain traceability: Enhancing monitoring systems to ensure ethical sourcing.

• Climate resilience: Supporting adoption of sustainable farming methods and climate-smart agriculture.

• Inclusive employment: Generating rural jobs, with an emphasis on youth and women.

• Diversification: Complementing the Ivorian government’s National Development Plan 2021–2025, which prioritises agro-industrial development and targets GDP growth of 6.5% in 2025.

By linking financing with sustainability benchmarks, the facility aims to build a more transparent and equitable cocoa ecosystem.

Benefits for farmers and communities

The AfDB expects the programme to:

• Boost export volumes by up to 10% annually.

• Benefit more than 50,000 smallholder farmers through expanded pre-financing, technical assistance, and access to markets.

• Strengthen cooperatives by providing better liquidity, allowing them to compete more effectively in global supply chains.

These interventions are expected to reduce the reliance of farmers on informal credit arrangements, which often come with high costs and risks, while ensuring that more value remains within local communities.

Broader regional implications

Although focused on cocoa, the initiative also addresses broader liquidity constraints in West African agricultural markets. By demonstrating investor confidence in the sector, the AfDB facility could catalyse further private investment into agricultural value chains across the region, from cashew and cotton to emerging high-value crops.

The AfDB noted that this deal signals to international investors that West African agribusiness is an increasingly attractive sector, both economically and strategically, as countries diversify beyond raw commodity exports toward value-added processing.

Strategic importance

The financing represents a win-win for development and commerce: securing Côte d’Ivoire’s leadership in cocoa exports while pushing forward reforms for sustainability, gender inclusion, and climate resilience. As the global chocolate industry faces growing scrutiny over supply chain practices, this initiative positions Côte d’Ivoire to remain competitive and future-ready.