The Ivorian government is set to significantly increase its financial support for small local cocoa exporters, aiming to more than double their annual purchasing volumes.
This move comes as a response to the challenges faced by these exporters in securing financing and competing with larger international players.
Ivory Coast, the world’s leading cocoa producer, has seen a significant portion of its cocoa exports controlled by multinational corporations.
To address this imbalance, the government will provide subsidies of 10 billion CFA francs ($16.75 million) per year over the next four years to small exporters.
This is a substantial increase from the previous annual subsidy of around 3 billion CFA francs.
The goal of this increased support is to foster the development of national champions in the cocoa sector and to boost the purchasing power of small exporters.
By providing these subsidies, the government hopes to encourage banks to extend loans to these exporters, making them more financially sound.
Additionally, this initiative comes at a crucial time as the European Union prepares to implement new regulations on the import of commodities linked to deforestation.
These regulations are expected to intensify competition among exporters, making it even more important for Ivorian companies to be competitive.
While the subsidy is a positive step, experts argue that more substantial and sustainable financial support is needed to truly level the playing field for Ivorian cocoa exporters.
As the government seeks to achieve its goal of increasing the purchasing volumes of small exporters, it will be essential to provide the necessary resources to ensure their long-term success.