Cocoa Sourcing, Aggregation and Export — Sucres et Denrées

Project Description

The project supports SUCDEN Côte d’Ivoire in expanding the sourcing, aggregation and export of sustainably produced cocoa. It responds to the limited appetite of commercial banks in Côte d’Ivoire for cocoa-related financing and enables SUCDEN to deepen its support to cooperatives and smallholder farmers.

TACFM financing supports the pre-financing of cocoa purchases and a new asset-acquisition initiative for cooperatives and smallholder farmers. The Bank’s financing supports broader cocoa-purchasing requirements, including forward purchases, price-risk management and the carrying of cocoa stocks.

Through the operation, SUCDEN will provide financing to cooperatives and suppliers sourcing cocoa from approximately 57,000 smallholder farmers.

The project will contribute to a more inclusive, traceable and sustainable cocoa value chain in Côte d’Ivoire while improving access to finance, markets, productive assets and technical support.

Project Objectives

• De-risking CAPEX Financing for cocoa farmers: A strong example of blended finance, through ACFM’s financing, SUCDEN will launch a zero-interest, unsecured asset financing program for smallholders and cooperatives, funded by $430,000 in savings from an ACFM concessional loan, with plans to scale to $1 million annually from SUCDEN’s own resources.
• Promote Sustainability: Provides long-term financing not available from commercial lenders and cascading benefits to smallholders. The expected impact on agricultural value chains is transformative as the CAPEX financing will increase the credit history of the farmers and build trust for future financing.
• Empower Women: Establishing 52 new VSLAs; & financial inclusion and income generating activities to 2,800 women.
• Enhance Climate Resilience: Expansion of cooperative financing and climate-smart investments.

Expected Outcomes

• 10 co-operatives and 7500 farmers, to benefit from the ACFM CAPEX financing scheme.
• 56,000 smallholders, gain increase access to long term financing including 2800 women.
• c.2.5x, of private sector funds to be mobilized towards the CAPEX financing program.
• c.3000 youth, to receive training on income generating activities.
• Increased income for farmers, the new CAPEX financing includes equipment financing,
  warehouse/mini-depot financing which will reduce the transportation hurdles to and from
  farms, improve storage and reduce waste, and also ultimately lead to an increase income
  for the farmers.

ACFM is also considering providing USD 1.5 million in technical assistance to Sucden Côte d’Ivoire to strengthen the organizational, operational, and commercial capacities of 26 cocoa cooperatives, enabling them to comply with evolving market and regulatory requirements while promoting climate-resilient and sustainable cocoa production.