Opportunities for Financing Farming & Processing in the Cassava, Maize and Plantain Value Chains in Côte d’Ivoire Photography by: Cadel Musala – N’Gol Vision Contents Executive Summary................................................................ 8 9. Cassava processing.......................................................... 31 Introduction...........................................................................12 9.1. Cassava processing systems............................................ 31 Approach Undertaken...........................................................13 9.2. Innovation in cassava processing....................................34 List of Abbreviations............................................................... 4 9.3.  Optimal cassava processing units for small and medium market players.................................................................35 Part 1: Industry Analysis........................................................15 Part 5: Opportunities for Financing in Farming and 1. Maize industry................................................................. 15 Processing.............................................................................. 36 2. Plantain industry.............................................................16 1. Financing gaps for MSMEs in the target value chains...36 3. Cassava industry.............................................................. 17 2. Possible financial products.............................................36 Part 2: Maize Value Chain......................................................18 3. Risks and how to mitigate such risks..............................37 4. Maize farming..................................................................18 Part 6: Business Models for Lending to the Select Value 4.1. Maize farming systems...................................................18 Chains..................................................................................... 38 4.2. Innovations in maize farming.........................................19 1. Farming enterprises........................................................38 4.3.  Optimal maize farming for small and medium market 2. Processing enterprises....................................................41 players............................................................................. 20 Part 7: Opportunities and Constraints for Technology 5. Maize processing............................................................ 22 in the Value Chains............................................................... 44 5.1. Maize processing systems.............................................. 22 Part 8: Financial Feasibility Results..................................... 46 5.2. Innovations in maize processing....................................23 1. Maize value chain............................................................47 5.3.  Optimal maize processing units for small and medium market players................................................................ 24 2. Plantain value chain........................................................ 51 3. Cassava value chain.........................................................55 Part 3: Plantain Value Chain................................................. 25 Appendices............................................................................ 59 6. Plantain farming.............................................................25 References............................................................................. 60 6.1. Plantain farming systems...............................................25 6.2. Innovations in plantain farming.................................... 26 6.3.  Optimal plantain farming for small and medium market players..............................................................................27 7. Plantain processing........................................................ 28 7.1. Plantain processing systems.......................................... 28 7.2. Innovations in plantain processing............................... 28 7.3. Optimal plantain processing units................................ 28 Part 4: Cassava Value Chain................................................. 29 8. Cassava farming............................................................. 29 8.1. Cassava farming systems............................................... 29 8.2. Innovations in cassava farming..................................... 30 8.3.  Optimal farming systems for small and medium market players............................................................................. 30 Executive Summary This Business Model Report has been prepared by Agri Frontier East Africa Limited on behalf of the International Finance Corporation (IFC) in relation to the staple food sector in Côte d’Ivoire, with a focus on the maize, cassava, and plantain value chains. Agriculture in Côte d’Ivoire is mostly subsistence-based. Most farmers in the food crops sector rely on rain, manual family labour, traditional knowledge and practices, and agri- cultural expansion to maintain productivity. They have limited access to various services (financing and insurance services, information) and inputs required for innovative pro- duction, such as post-harvest processing, mechanization, and high-quality crop inputs. This report provides the technical and financial guidelines and tools that financial institutions (FI) could use to make informed decision about funding women led co-op- eratives engaged in farming and processing in the maize, cassava, and plantain value chains in Côte d’Ivoire. The report also outlines guidelines to market players (farmers and processors) which aim to ensure that they develop profitable business models to achieve profitability and viability. The objective of these business models is to increase the technical efficiency of the production units (farming and processing) through appropriate use of the existing innovations. Introduction Background This Business Model Report has been prepared by Agri Frontier East Africa Limited and ONYX Limited on behalf of the International Finance Corporation (IFC) in relation to the staple food sector in Côte d’Ivoire, specifically the maize, cassava and plantain value chains, and with a focus on women-led cooperatives active in these segments. In Côte d’Ivoire, the agriculture sector employs over 50% of the population and accounts for half the country’s export earnings. The country’s staple food sector has not yet attained its full potential, despite its considerable contribution to GDP, the substantial List of jobs generated, and its potential to lower poverty. Abbreviations The staple food sector and its players face various challenges, including limited storage and transportation infrastructure and limited access to financing, which affects its ANADER  Agence Nationale d’Appui primary players, who are primarily women smallholder farmers. au Développement Rural CNRA  Centre National de Furthermore, financial intermediaries have limited knowledge of agriculture and staple Recherche Agricole foods and therefore consider the sector as risky and unpredictable, which reduces the appetite to lend. CSRS  Centre Suisse de Recherche Scientifique This report has been prepared in the context of a joint effort by IFC, AfDB and FI Financial Institution UNWomen to strengthen the technical and business skills of women-led cooperatives in the staple food sector in Côte d’Ivoire, as well as enhance the knowledge and capacities GAP Good Agricultural Practice of financial institutions to improve sector’s the access to finance. I2T  Institut de Technologie Tropical Objective OCPV  Office pour la Commercialisation des The main objective of the report is to develop business models on farming and/or Produits Vivriers processing of cassava, maize and plantain in Côte d’Ivoire that would help financial institutions to gain better knowledge of the above value chains, to design appropriate OPV Open Pollinated Variety financing products and to streamline the loan decision process for women-led SHF Small holder Farmer cooperatives. 1 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing This report has been produced hand in hand with a financial evaluation tool, to assess the profitability of lending to various cooperatives engaged these select value chains. In addition, detailed financial models have been prepared to assess the cash flow projections of the cooperatives, which could be used in the loan decision process. A marketing strategy plan has also been prepared, which aims at guiding financial institutions in their lending initiatives to cooperatives operating in the various value chains. It is vital for financial institutions to have the right marketing approach, so that cooperatives with a suitable profile can enter their pipeline as potential clients for lending. Approach Undertaken Methodology The main approach of the reports is summarised below: • Conducted secondary and primary research. Secondary research included a review of various documents and reports to gain insight into the staple food sector within Côte d’Ivoire, with a focus on women led cooperatives. • Conducted site visits to both primary producers and processors in the three value chains, and institutional value chain players. These include Swiss Centre for Scientific Research in Côte d’Ivoire (CSRS), The National Institute of Tropical Technologies (I2T), the National Centre of Agronomic Research, and financial institutions. • The table below shows the location of the various players that were interviewed: Topic No. Location Innovations and efficient (and profitable) farming models (Research and 3 Abidjan, Dabou, Korhogo Development institutions) Processing technologies and innovations 2 Abidjan Financing mechanisms to agri coops and MSMEs, difficulties 3 Abidjan Primary Production: Cassava 5 Bouake, Daloa, Issia, Toumodi Primary Production: Maize 4 Ferke, Korogho, Boundiali, Bouafle Primary Production: Plantain 4 Azaguie, Akoupe, Daloa, Aboiffoo Processing: Cassava 5 Alepe, Daloa, Bouafle, Bouake Processing: Maize 4 Ferke, Bouafle, Abidjan Processing: Plantain 3 Abidjan, Daloa, Yamoussoukro • Analyzed the data collected and developed the various deliverables with a view to helping financial institutions gain a better knowledge of these value chains. Data Sources and Limitation The findings and recommendations made in this feasibility study draw on numerous data sources and assumptions. These include: 1. Primary data gathered during site visits from primary producers, processing companies, financial institutions and other organizations providing support to agribusinesses. This data informed both the financial modelling (e.g., input and output prices, direct costs, and overhead costs) and development of the business model report. 2. Secondary data (production and cost data) from reports: Usage of several reliable market reports to develop a comprehen- sive understanding of the three value chains and supplement primary data collected. This data informed key market and financing assumptions within the modelling and value chain work Note: The main secondary sources utilized are listed throughout the report and in the financial models’ input tabs. Where sources are not provided, assumptions were made based on information collected during the site visits. The reports contains information that the authors believe to be accurate, but which has not been validated or audited. Any forecast based on current data and past trends comes with its own set of risks and uncertainties. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 2 Part 1: Industry Analysis Overview In Côte d’Ivoire, approximately 17.7 million ha of the total agricultural land is under permanent crop or pasture production, and the re- maining 2.9 million ha is under arable cropping systems. Most agricultural production is subsistence-based, and smallholder farmers rely on rain, manual family labour, traditional knowledge and practices, and agricultural expansion to maintain productivity. Smallholders have very limited access to the services and inputs necessary to innovate, including robust extension services, high-qual- ity crop inputs, information services (e.g., weather, pests, markets), credit and insurance services, mechanization, and good post-har- vest processing, robust transportation infrastructure, and stable markets. The graph below shows a comparison of the food crop production in Côte d’Ivoire with other regions in Africa: Figure 1: Food crop production, Sub-Saharan Africa 10B 80M Production (tons) 60M 40M 20M 0 Yams Cassava Plantain Rice Maize Eastern Africa Middle Africa Western Africa Cote d’Ivoire Source: Data from FAOSTAT 2020 1. Maize Industry Production Maize production in Côte d’Ivoire increased from 280,000 tons in 1971 to 1.18 million tons in 2020 growing at an average annual rate of 3.50%. The average yield between 2016 and 2020 is 2.1 tons per hectare. The figure below shows the maize production between 2016 and 2020 in Côte d’Ivoire. Figure 2: Maize production, Côte d’Ivoire 1.4M 1.2M Production (tons) 1M 80K 60K 40K 20K 0 2016 2017 2018 2019 2020 Production (Tonnes) Area Cultivated (Ha) Source: FAOSTAT 2020 Processing 3 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing Maize processing in the country is carried out at two levels, artisanal and industrial processing units. Maize is mainly processed into 3 forms, namely: • Maize flour and concentrate • Animal feed (poultry farming, pig farming) • Agri-food industries (brewery) 2. Plantain Industry Production Côte d’Ivoire is among the top 5 producers of plantain in Africa. The figure below shows the annual production of plantain in Côte d’Ivoire between 2016 and 2020. Figure 3: Plantain production, Côte d’Ivoire 2M 1.8M Production (tons) 1.6M 1.4M 1.2M 1M 80K 60K 40K 20K 0 2016 2017 2018 2019 2020 Production (Tonnes) Area Planted (Ha) Source: FAOSTAT, 2020 Plantain production in Côte d’Ivoire has grown marginally between 2018 and 2020. This is mainly due to an increase in the area under cultivation, from 491.9 ha in 2018 to 501.7 ha in 2020. Although plantain production in Côte d’Ivoire is much higher than banana production, banana is presently of greater importance in terms of world trade. Whereas banana production is generally more centralized, involving larger production firms and a more structured marketing and transportation system, plantain production is characterized by small-scale, widely dispersed producers. Processing In Côte d’Ivoire, similar to other West African countries, plantain is usually cooked, roasted, boiled, and steamed either when green or very ripe. Only a small fraction is processed into flour, snacks, and animal feed. In addition, ground plantain is used to fortify other processed foods such as wheat flour. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 4 3. Cassava Industry Production Côte d’Ivoire produced about 6.4 million tons in 2020, ranking second behind yams. This accounts 2.1% of the global production and 3.31% of the total production in Africa. The graph below shows the production of cassava in Côte d’Ivoire between 2001 to 2020. Figure 4: Cassava production (2001 to 2020) Production of Cassava in Côte d'Ivoire (2001-2020) 7.000 6.000 Production('000 Tons) 5.000 4.000 3.000 2.000 1.000 0 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Year Source: FAOSTAT data (2001-2013), DSDI/ME MINADER (2014-2020) Production has been increasing continuously with an average annual increase of 104% (FAOSTAT 2020). The main cassava producing zones are in forest areas where rainfall is higher. Processing Cassava processing is widespread throughout the country, dominated by traditional, artisanal methods of production. However, development projects have led to a revival of semi-industrial and industrial processing. Thanks to this transformation, a variety of products can now be obtained at the domestic and industrial level (FIRCA, 2019). There are six major processed cassava products in Côte d’Ivoire i.e., fresh roots: cossettes, placali, garba, attiéké, foufou and starch. Products that can be obtained at the domestic level include attiéké, foufou and placali, at the industrial level they include starch, flour, and bread. These products are mainly for human consumption, since cassava is a major food crop for the Ivorian population. Besides, cassava, is also used in the production of animal feeds. The staple food sector has not yet attained its full potential, despite its considerable contribution to GDP, the substantial jobs generated, and its potential to lower poverty. 5 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing Part 2: Maize Value Chain 4. Maize Farming 4.1. Maize farming systems a) Main farming fodel Small/traditional farming Traditional maize farming is the most prevalent production system in Côte d’Ivoire. This is a monoculture system, especially in the northern part of the country, characterized by small, cultivated areas, ranging between 0.25 to 5 ha. Access to inputs (fertiliser and seeds) remains a major constraint and few farmers apply GAP (Good Agronomic Practices) because of liquidity constraints and/or lack of knowledge (especially for improved seed varieties). Yield level is usually below 2-3 tons/ha, and a large part of the production is allocated to home consumption. This farming system comprises individual farmers and farmers registered in cooperatives. Generally, cooperative members in this farming system only feel compelled to market their produce through their organization if they have received input support. Otherwise, they operate a business model based on their own marketing strategy. Most farmers in women-led cooperatives belongs to this category of farming system. Commercial/large farming According to the National Agronomic Research Center, CNRA, cultivated maize areas above 5 ha can be considered as large farms. This category includes individual farmers, enterprises, and farmers registered in cooperatives. Their production system is more market-oriented, with less than 30% for home consumption. Some farmers in this category practice an intensive farming system with an appropriate use of inputs. b) Production cycle and farming operations Most maize varieties take between 80 to 110 days to mature. Extra early, early, and intermediary varieties usually take 80 to 90 days, 90-100 days, and 105 to 110 days, respectively. The production cycle and the technical process determine when maize producers need inputs and liquidity the most, and when they can repay any external support. Like most farming systems in Côte d’Ivoire, maize production is linked to the rainy seasons. Figure 1 shows the production cycle of maize in the Northern (savannah) and southern part of the country (humid). The southern part records two harvest seasons whereas the Northern part records one season. Planting occurs at the start of the rainy season usually around May/June in the North and April/May in the South (first cycle). Maize farming faces two major external risks, climatic hazards characterized by with erratic rainfall, and fall armyworms. Northern part (Savanah) Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Land preparation: Ploughing and Ridging 1 About 479 of maize farmer organizations Planting were identified in a study by the Ministry of Agriculture (MINADER, 2017). In most cases Weeding (Manual these organizations do not have a formal status, / Chemical) with less than 25% of them being formally registered as cooperatives. the key constraints to Fertiliser the structuration and development of cooperatives application in the food crops sector are analyzed in a report produced by Deloitte (2019a) on behalf of IFC. Harvest Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 6 Southern part (Forest) - First cycle Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Land preparation: The large deficit Ploughing and Ridging in maize supply is expected to Planting increase given the Weeding (Manual growing demand / Chemical) for animal feeds Fertiliser and from agro- application industrial units. Harvest Southern part (Forest) - Second cycle Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Land preparation: Ploughing and Ridging Planting Weeding (Manual / Chemical) Fertiliser application Harvest 4.2. Innovations in maize farming With the growing need to improve farming operations and productivity, various innovations have been developed and are put in place. These include: a) Mechanized land preparation Land preparation consists of making the soil amenable to maize planting through ploughing. This operation is increasingly mechanized using tractor services, and is therefore time and labor force effective. Mechanization contributes to addressing the shortage of labor force experienced in many areas of the country. Mechanized land preparation can cost between FCFA 60,000 - FCFA 70,000 per ha in the North, depending on the distance of the farm from the central location of the tractor services. b) Improved maize seeds Most farmers use their own home-grown grain as seeds over several cycles. This practice results in low yield and disease spread. The adoption of improved seeds could offer farmers with the opportunities to substantially improve their yield. There are two categories of improved seeds, namely, OPV (Open Pollinated Variety) and hybrids seeds. 2 Ministry of Agriculture and Rural Development Farmers can use OPV seeds over a maximum of 2 to 3 years. Known varieties for OPV (MINADER) 2017. Regional identification can be purchased from CNRA and agro-dealers. Whereas OPV seeds yield up to 5 t/ha, of farmer organizations, and GIS location of communities of maize farmers. MINADER & hybrid seeds produce 10-20 t/ha and can only be used for one production cycle. WAEMU, 2017 report OPV and hybrid varieties cost around 1,000 FCFA/kg and 3,000/5,000 FCFA/kg, 3 Yields may become erratic when farmers do not respectively. use the recommended farm practices, making any yield simulation unreliable. 7 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing Table 1. Catalogue of improved maize seeds Agro-ecological zones Variety names Variety type Cycle Main features All areas FMB OPV Extra early (80-90 days) Horny-toothed white grains All areas GMRP 18 OPV Early (90-100 days) Semi-toothed yellow grains, rich in protein Intermediate (105-110 All areas MDJ OPV Light yellow seeds days) Intermediate (105-110 All areas EV8728 OPV Lodging resistant; semi-horny yellow kernels days) Intermediate (105-110 Tropical dry & humid Kabamanoj Hybrid Large yellow-orange and toothed grains days) Humid tropical Bondofa (fill attic) Hybrid Early (90-100 days) Toothed white grains Kadegningue Intermediate cycle (105- Horned yellow kernels (good for processing Humid tropical OPV (yellow corn) 110 days) into flour) Humid tropical Kabawouleni OPV Early cycle (90-100 days) Small horny yellow kernels Horny purple grains. Variety much cultivated Intermediate cycle (105- Forest, transition areas Violet of Katiola OPV by the inhabitants of the center-north of the 110 days) country. Dense moist deciduous Intermediate cycle (105- Obatanpa OPV White horny-toothed grains (rich in protein) forest zone 110 days) Source. CNRA, a study by CORAF/IFDC on compendium of technologies in Côte d’Ivoire, 2020 c) Fertiliser and other inputs (Plant Protection) Fertiliser application is a crucial step in maize farming because of a loss and degradation of soil fertility in many areas. The main fertili- sation recommendation for 1 ha of maize is to apply 4/5 bags of NPK (200-250 kg) and 1 bag of urea (50 kg) 3 weeks after planting, and then 1 bag of urea (50 kg) after 6 weeks (CNRA, 2021). An alternative or complementary fertilization strategy with organic products is using manure, for instance. In addition, other organic fertilisers have been promoted as alternative chemical inputs, especially in the context of the rising cost of fertiliser, which is estimated around 25 000 FCFA for a 50 kg bag, i.e., twice as much as the previous year price (2021). CNRA is also promoting fertilisation using micro-dosages (use of small pockets) that can contribute to reduce the use of chemical fertiliser by about 35%. This technique is, however, labor intensive and can increase the labor cost by 20%. d) Irrigation system Maize production is mostly rainfed, however, irrigation systems hold high potential given the rising demand for maize. Moreover, sea- sonal shortage is becoming an issue especially in the northern part of the country. Several enterprises and entrepreneurs are showing interest in investing in irrigation to seize the opportunity of the increasing demand during the off-season. The inter-seasonal price can rise by 100% during the period April/June. 4.3. Optimal maize farming for small and medium market players The deficit in maize supply is estimated at about 300,000 tons annually and expected to increase given the growing demand for ani- mal feeds (especially poultry) and the agro-industrial (breweries) units2. Two optimal farming models have been identified and can help farmers tap into the maize market. They include a minimum set of practices that may guarantee an optimal yield and technical success3. These include: • Small farms (0.25 - 5 ha) using an improved technical process and operating under the umbrella of cooperatives. This model applies to most farms (especially women-led farms), but it is based on an improvement of agronomic practices and appropriate technologies. • Medium farm (> 5 ha) size using an improved technological process, with option for irrigation during the expansion phase. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 8 Table 2. Optimal maize farming units Criteria Small farms Medium farms Cultivated area 0.25 - 5 ha > 5 ha Preference for OPV but with Preference for Hybrid with option for Seed option for hybrids OPV Focus on organic fertiliser Organic fertiliser coupled with chem- Fertiliser (manure) with option for ical fertiliser chemical Pesticides Preference for biopesticide Alert system Weeding Manual & chemical Manual & chemical Family, Community help with Labor force Permanent & casual labour force option of casual labour force Leasing a tractor service with option Preference for manual with of owning a tractor for at least 10 ha, Mechanization option for leasing a tractor with option to rent it out to surround- service ing farms Irrigation Not applicable Applicable for at least 10 Ha system Harvest Manual Manual or mechanised Technical Contracted through the coop- Contracted directly through public/ assistance/ eratives private providers Advisory Governance Within cooperatives Entrepreneurial 5. Maize Processing 5.1. Maize processing systems a) Products and processes • Animal feed Animal feeds represent about 25% of the national demand in maize and 55% of traded maize (Rongead, 2014). Maize is a key component of animal feeds, amounting to 65%- To fully tap 75% of the composition (Minagri 2021). Poultry animal feed, for instance, is obtained into the maize as a combination of maize (yellow maize preferably), rice bran, protein, soybean, and seashell. The production of animal feeds, especially for poultry, is seasonal since market, farmers many processors cannot hold large maize stocks due to a lack of storage facilities and can leverage working capital constraints. important Major large-scale players of the feed industry that could also represent market outlets for maize farmers include companies such as IVOGRAIN and FACI, and much smaller innovations in market players like Groupe SODIP. These processing units are in Abidjan (FACI, IVO- farming and GRAIN, SODIP) and Yamoussoukro (IVOGRAIN). processing. • Maize flour and concentrate Maize flour is mostly produced for home consumption and used in popular dishes such as kabado and porridge. Mealy and semi-mealy varieties are used to produce maize flour. It can be white or yellow (including potash). There is increasing supply of maize flour in organized markets such as supermarkets, suggesting changing food and purchasing habits. 4 Maize represents an important ingredient of breweries industry. Major players market players • Maize drinks4 comprise Brassivoire (Abidjan), Solibra (Abidjan, The most popular maize drink is the traditionally brewed tchapalo, mostly produced Bouafle). But they rely on well-structured sourcing informally by women. Tchapolo can be considered the primary consumed alcoholic of large quantity mainly from the import markets. 9 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing beverage in rural areas in the North. A limited number of units process maize into soda drinks with the aim to develop a new market segment. Its potential has yet to be proven. b) Processing units • Artisanal processing of maize flour Many women-led cooperatives use artisanal processing technologies to process maize into flour. Equipment is very rarely owned, and, in most cases, they outsource the automatic/mechanised operations by paying for the services in the local market. Most of Picture 1. Maize crush and couscous these processors are exposed to price fluctuations of maize with very few being directly involved in the supply of raw material. Consequently, artisanal processors frequently run out of stock because they are unable to build maize stocks because of a lack of storage facilities and liquidity constraint. Some processors have informal partnerships with retailers in Abidjan to produce unbranded maize flour on order basis. The larger share of their produce is sold in the local markets. • Artisanal processing of alcoholic maize drink Individual women mainly lead this activity, and it is fully artisanal. Picture 2. Maize drinks (soda) • Small processing unit of maize drinks There have been recent initiatives of young entrepreneurs who process maize into drinks assorted with different flavors. The processing stages are quite unsophisticated. Apart from pure maize drinks the brewery industry also uses maize as an ingredient in its production process. Major players include Solibra and Brassivoire. These processing units use a well-structured sourcing process of ingredients of other raw material. They could also represent market opportunities for well-organized farmer cooperatives. Picture 3. Small maize miller (grinder) 5.2. Innovations in maize processing The I2T (Institute of Tropical Technologies) has developed a full set of equipment to produce flour from agricultural products (banana, yam, potato, rice, taro, cassava, millet, sorghum, etc.). It is composed of the following elements: a cooker, a slicer, a dryer, a re- finer. The complete set, composed of these four (4) pieces of equipment, has a capacity of producing 500 kg of flour an hour and costs about FCFA 22 million. Picture 4. Poultry feed processing equipment Alternative equipment is also available from private equipment providers and could cost approximately 10%-20% less than equipment sourced from I2T. This set would be applicable for small scale processing businesses. 5.3. Optimal maize processing units for small and medium market players The demand for maize flour and animal feed is expected to increase. Traditional alcoholic maize drinks have not seen significant production innovations and remain an Picture 5: Medium maize processing unit inorganized market. Soda drink is barely at the stage of concept proof. Two optimal farming models can help farmers tap into the maize market. These optimum models define the minimum set of practices that may guarantee technical success. • Small units of maize flour processing with miller and grinder extended with other improved equipment (dryer and spinner). • Medium size processing unit of animal (poultry feed). Picture 6. Multi-usage (grinder machine) by I2T Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 10 Table 3. Minimum profile for an optimal processor Cooperative-type small Entrepreneurial type- Criteria processing units industrial units Animal feeds, especially Main products Maize flour poultry feeds Owned equipment, Type of Owned, full set of especially miller and equipment equipment grinder Focus on organic fertiliser Organic fertiliser coupled Fertiliser (manure) with option for with chemical fertiliser chemical Source of raw Members produce From private suppliers material Mode of Cooperative type Entrepreneurial type governance Type of labor Employees Employees used Mechanization Greater than 50% Greater than 70% level Wholesale and semi- Wholesale and semi- Type of sale wholesale wholesale Harvest Manual Manual or mechanised Technical Contracted directly Contracted through the assistance/ through public/private cooperatives Advisory providers Governance Within cooperatives Entrepreneurial Effectively structured, women-led farming and processing cooperatives offer important market and financial opportunities. 11 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing Part 3: Plantain Value Chain 6. Plantain Farming 6.1. Plantain farming systems a) Main farming models Rotational or intercropping In Côte d’Ivoire, plantain is farmed as a rotation crop or an intercrop. As an intercrop, it is cultivated with cocoa and more recently with rubber or oil palm. The cultivated areas of a cocoa farm as the cash crop with which plantain is intercropped represents 23% to 50% (Perrin, 2015). In the predominant case of “cocoa + banana”, the area rarely exceeds 2 hectares. The main production purpose is usually home-consumption, with only the production surplus being sold into the market. Farmers use traditional varieties such as Corne 1 (Afoto used for foutou) and French 2 (Angrin used for Aloko in Centre Ouest), Sassi, Big Banga. These are not very productive and susceptible to parasites, pests, and diseases (nematodes, black weevils, and black Sigatoka). Fertilisers and phytosanitary application are very limited in these farming models. However, plantain plants can benefit from fertilisers applied for the cultivation of cocoa or other intercrops. Yields remain low, however, estimated at 3.7 to 4 tons/ha. These farming models are dominated by farmers from women-led cooperatives. Rainfed and irrigated monoculture of plantain The proportion of plantain farms in monoculture (intensive culture) remains low with irrigated farms even lower in numbers. These farms are found in the areas of Akoupe, Azaguie, and Aboisso, i.e., surrounding the main urban city, Abidjan. Planted areas of irrigated monoculture cover at least 10 ha. Farmers still use traditional varieties (Big Banga, Sassi) and to some limited extent improved varieties such as Corne 3/5. Irrigated farms can produce plantain throughout the year and sell the fruits during the off-season (April to September) at around 200/250 F CFA/kg compared 50 F CFA/kg during the on-season. Picture 6. Plantain with irrigation system in Akoupe Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 12 b) Productions areas The production area of plantain covers the southern part of Côte d’Ivoire, the forest zone with rain levels of at least 1300 mm per year, and to a lesser extent the savannah-forest transition zones receiving between 1100 and 1300 mm of rain. Main production regions include Haut-Sassandra, Agnéby-Tiassa, Loh-Djiboua and Marahoué. c) Production cycle and farming operations The growing period of plantain is 12 to 15 months, after which it can be harvested for 3-5 years. Some early varieties can start producing fruits at around 10-11 months. Most plantain farming in the country is rain-fed. Land preparation is done the during dry season (February/March). The planting season for a new plantain cycle starts at the beginning of the rainy season, usually around March/April. Then, early harvest begins October/November with the peak harvest season being December to February. Once the production of the first cycle is completed during the dry season, the second cycle can start with the offshoot plants. Traditional plantain varieties can be harvested over 3 consecutive cycles whereas hybrid varieties can reach 5 cycles, with their full potential obtained after the second cycle. Besides erratic rainfall, the main production risk is the disease cercosporin for which a chemical treatment coupled with agronomic practices are available. Year 1 Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Land Preparation Planting Weeding Harvesting - - + Year 2 Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Land Preparation Planting Weeding Harvesting + + - - - - - - + + The market potential for Year 3 staple foods is Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec strong, especially Land Preparation during the off- Planting season given Weeding seasonal price Harvesting + + - - - - - - + + increases. Plantain production cycle (source, Rongead and authors) 13 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing 6.2. Innovations in plantain farming With the growing need to improve farming operations and productivity, various innovations have been identified and put in place. These include: a) New varieties Researchers have developed improved varieties, but these have only recently been promoted. These hybrid varieties such as FHIA 21 and PITA 3 have several advantages over traditional varieties: • Resistance to diseases such as cercosporin • Shorter production cycle of 10 to 11 months • Higher yields of between 25 and 30t/ha • Require less fertiliser application. Their adoption rate however remains low as farmers find them unsuitable for home consumption products such as pounded plantain (foutou). Instead, they are more appropriate for processing plantain into flour and chips. Improved varieties cost about 300 F CFA a plant. Table 4. Catalogue of improved plantain varieties Cycle (in Average/Max yield Agroecological zones Variety names Variety type Main uses days) (t/ha) Batard Intermediate 340 8/25 Foutou & Alloco 3 vert Intermediate 387 10/27 Foutou & Alloco Areas with more than 1100 mm annually (humid forest, Savannah Forest Corne 1 (sensitive False horn 331 12/25 Foutou & Alloco to cerrcos) Orishele False horn 345 15/31.5 Foutou & Alloco b) Intercropping with vegetables and legumes CNRA has developed a new technological package to produce plantain with vegetable and legumes in intercropping systems. By intercropping vegetables and/or legumes with banana, farmers can realise cashflows before the banana harvest. Plantain can be inter- cropped with vegetables such as cabbages, okra, and soybean. c) Irrigation system Production of plantain under irrigation offers farmers better returns since seasonal price variation can increase by up to 4 - 5 times the price during peak production. While irrigation systems are not an innovation per se, their application in plantain farming has been limited. Availability of water, is however, a pre-condition to implement this farming model. 6.3. Optimal plantain farming for small and dedium market players The market potential for plantain is huge, especially during the off-season given seasonal price increases. The two potential optimal farming models to tap into this market include: • Small farms using improved technical package, intercropped with vegetables, under the umbrella of cooperatives. • Medium farm size of pure banana farming using irrigation. Table 5. Optimal plantain farming units Criteria Small scale Medium scale Cultivated area 0.25 - 5 ha > 5 ha Plant variety Preference for local varieties (offshoot or vitroplants) Vitroplants (PIITA 3, FIA 21, Corne 3/5, Big banga) Intercrop Cabbage, okra, soybeans None Fertilisers Organic (manure) with an option of use of chemical fertilisers Combined organic and chemical fertilisers NPK (20-10-10) and Urea Cooperative type Entrepreneurial type Mostly through agronomic crop management (such as Alert system, with fungicide, coupled with Pest and disease control removal of damaged leaves) and pesticides agronomic crop management Weeding Manual Manual and chemical Labor force Family, community help with an option of casual labor force Permanent & casual labor force Irrigation Not applicable Yes Technical assistance/ Through a cooperative Contracted with private providers advisory Governance Within cooperative Entrepreneurial Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 14 7. Plantain Processing 7.1. Plantain processing systems a) Products and processes Plantain flour The plantain and banana processing industry in Côte d’Ivoire is limited to a few initiatives that are still at product development/proof of concept. The most common processed plantain products are flour for pounded plantain (foutou) or pastries, semo- lina, crisps or infant foods. Plantain flour allows the consumption of pounded plantain, foutou, even during periods of banana shortage. There is a high demand of flour from unripe plantain among diabetic people. Plantain chips Plantain chips are a popular product sold across the streets of urban cities. Their pro- cessing remains traditional and unsophisticated. Commercial packaging and branding are slowly growing, and new products can increasingly be found in supermarkets. Picture 7. Sample of plantain flour products b) Processing units Processing units are mostly small units processing plantain flour and other crop flour such as from cassava. There are a couple of entrepreneurial initiatives in plantain pro- 5 The interviewed cooperative had stopped processing plantain at the time of the interview. cessing, especially of young entrepreneurs producing plantain flour5. 7.2. Innovations in plantain processing There are no major innovations in plantain processing in the country. Technologies for the artisanal processing of plantain exist but require further promotion in the market. I2T’s multi-crop technology can also be used for processing plantain into flour. 7.3. Optimal plantain processing units The development of urban lifestyles creates good market prospects for plantain flour. Growing initiatives indicate a nascent market segment and industry. The optimal process- ing model is a medium-size industrial unit that uses semi-modern processes and is run as a cooperative of plantain producers (suppliers) or as an individual entrepreneurial project. Table 6. Optimal plantain processing units Criteria Cooperative-type small processing units Entrepreneurial type-industrial units Type of equipment Shared or owned equipment : miller, grinder, slicer, crusher, Owned equipment : miller, grinder, slicer, crusher Mode of governance Cooperative Entrepreunarial Source of supply Member producers Private suppliers Plantain flour (potentially coupled with other Main products Plantain flour (potentially coupled with other products) products) Type of labor used Employees Employees Mechanization level Greater than 50% Greater than 70% Type of sale Wholesale Wholesale 15 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing Part 4: Cassava Value Chain 8. Cassava Farming 8.1. Cassava farming systems a) Main farming model Small and traditional farming Most areas cultivated with cassava range from 0.25 to 5 hectares in size. Cassava is cultivated in a monoculture system in rotation with maize and rice or yam. Smallholder farmers use self-produced cassava cuttings and only a few rigorously follow technical processes, especially the planting density. The average yield level is low, less than 10 t/ha for traditional cassava varieties. b) Production areas Cassava is adaptable to different types of soil and climate. Thus, almost all regions in Côte d’Ivoire can produce cassava except the very dry areas in the North. There is significant cassava production in central and southern parts of the country, except for the coast and the southwest, which is more dedicated to export crops. The central part of the country has a large supply due to the cultivation and food habits of local populations, for whom cassava and yams are a key part of the diet. The center-west also produces a great quantity of cassava for self-consumption, local trade and the supply of cassava paste to urban cities. c) Production cycle and farming operations The growing period of cassava is 12 to 24 months, depending on the variety, the avail- ability of labour and the use of the produce. For home consumption, it is recommended to harvest cassava 12 months after planting, and after 15 to 20 months for processing (CNRA, 2022). For new, improved varieties, harvest can start at around 9-10 months. As with other crops, planting is done at the start of the rainy season but can be extended to June/July. Weeding is done when needed, either manually and/or by use of chemi- cals. Cassava can grow with limited or no chemical fertilisation. Fertiliser may however be applied, especially in monocultures without crop rotation, at a rate of 300 kg/ha for NPK (10-18-18), 150 kg/ha for urea and 250 kg/ha for KCL, 60 days after planting (CNRA, 2022). Cassava farming is a labor-intensive activity, requiring in most cases hired labor for operations such as clearing, ploughing, manual weeding and harvesting. Family labour is mainly involved in light-duty operations such as phytosanitary treatment or planting. Innovations Year 1 in varieties Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec and technical Land Preparation processes Planting benefit farming operations and Weeding productivity. Harvesting - Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 16 Year 2 Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Land Preparation Planting Weeding Harvesting - + + + + + + + + + - - Year 3 Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Land Preparation Planting Weeding Harvesting - + + + - - - - - + + Cassava production cycle 8.2. Innovations in cassava farming With the growing need to improve farming operations and productivity, various innova- tions have been identified and put in place. These include: a) Improved varieties and technical process Cassava varieties are divided into two main groups, sweet and bitter cassava. The difference between these two groups is that bitter cassava contains a substance called hydrocyanic acid. Yavo is the most promoted variety, but adoption remains quite limited. Newly released varieties can reach 35-40 t/ha. Many farmers prefer older varieties such as Yace, but its yield has been declining due to the impact of diseases. Improved cuttings can cost between 50,000-60,000 F CFA/ha (About 5 F CFA/plant). Cassava is also promoted as a monoculture instead of a rotation crop. Table 7. Sample of improved maize varieties Cycles Average Production Variety names Taste Main uses (months) Yield (t/ha) areas Bitter/Sour South & Yace 11-20 20 Sensitive to Attiéké center mosaic disease Sweet, sensitive Bonoua 12-20 15 All areas Foutou to mosaic disease Sweet, sensitive Foutou & IM 84 12-20 30 All areas to mosaic disease Attiéké Center, South, Sweet/resistant Attiéké & Yavo 12-20 30 Est to mosaic disease Foutou Sweet/ resistant Attiéké & Bocou 12-24 20 All to mosaic disease Foutou 17 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing 8.3. Optimal farming systems for small and medium market players Two potential optimal farming models can be used to tap into this market: (1) Cooperative model of small cassava farms with improved technologies and GAP (2) Entrepreneurial model of medium-sized modern cassava farms. Table 8. Optimal cassava farming system Criteria Small Farm with GAP Medium farm Size 0.25 - 5 ha > 5 ha Varieties Improved varieties Improved varieties Density 10 000 plants/ha 10 000 plants/ha Fertilisation Focus on manure Manure (with option for chemical fertiliser) Pesticides Not applicable Alert system Weeding Manual Chemical, and manual if needed before 6 months Shared tools through the cooperative and/or renting in Rent in service providers, but can own tractors during Mechanisation service providers for land preparation the expansion phase and then with option to rent out Technical advisory Contracted through the cooperative Contracted technical advisory service service on farming Labor force Family and community help Permanent and casual workers Governance Cooperative Entrepreneurial 9. Cassava Processing 9.1. Cassava processing systems a) Products and processes • Cassava paste (Placali) Cassava paste, also called placali, is semi-finished product, obtained after pressing the crushed and fermented root. It is a ground, fermented and pressed uncooked paste. The lactic fermentation acidifies the cassava paste, which allows it to be preserved for up to several weeks. Placali also refers to a common dish in Côte d’Ivoire. It can be made from pressed root tubers or from cassava flour (pressed and dried fermented mashed potato). The dried paste is then mixed with water and filtered to eliminate the fibre. • Cassava semolina (Attièkè) Attièkè is a traditional product of Côte d’Ivoire. It is a fermented semolina made from steamed cassava. Good quality attiéké is white or cream coloured, with a slightly acidic taste, a floury smell, and a texture that is not sticky (Sahoré Drogba A, Jean N.G., 2012). About 200 kg of fresh cassava is needed to obtain 100 kg of fresh attiéké (Kouakou J, 2015). • Cossette Cossettes are dried cassava roots prepared by washing, peeling, and cutting the roots into pieces, which are then dried in the sun. To obtain 250 kg of cossettes one ton of fresh cassava roots are needed (Kouakou J et al, 2015). A soaking process is sometimes used to re- move fiber from the product before drying. The product can be used as livestock feed or ground into flour to produce other local dishes such as kodonde, a cooked paste like placali but prepared from the flour obtained after grinding the cossettes. • Cassava starch & flour Starch is used in food and non-food industries (pharmaceuticals, paper industry, etc.). The country satisfies most of its starch demand through imports. To extract starch from cassava roots, they are washed, peeled, and grated to release starch granules. The “starch milk” is then separated from the pulp (cellulose fibres) by filtration. Starch is also a by-product of attiéké processing in artisanal processing units. It is extracted by collecting the liquid from the pressing of the fermented cassava paste. The whitish liquid is left to decant. The solid phase deposited at the bottom of the container is sundried, resulting in starch. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 18 This starch also called “cassava flour”, is sold on the markets to produce tapioca, which is used in children’s food, or as laundry product (washing, ironing). But in most small units, the starch-rich pressing water is considered as a waste product, because of low quality compared to imported industrial starch and the limited quantity produced. Since the early 2000s, the company NESTLE has been implementing a strategy of local sourcing of products derived from cassava (to starch), cereals (corn, sorghum, millet, rice). NESTLE produces starch from fresh cassava which represent about 8.000 t annual- Picture 8. Cassava semolina 40 kg (attiéké) ly. About 80% of the company’s cassava supply comes from a 200 km perimeter around Abengourou where a suitable variety has been promoted and adopted by farmers. The remaining 20% comes from Bouaké and other areas (University FHB and CIRAD, 2017). b) Processing units Small-scale/artisanal processing units Most processing cassava units are artisanal. There 4 categories: Picture 9. Cassava paste 1. Processor groups producing fresh cassava, 2. Processors groups not producing fresh cassava, 3. Individual processors not producing cassava, and 4. Platforms of industrial unit carried out on a toll basis (by service providers). Women-led cooperatives fall in categories 1 and 2 and are the most common organi- zations. Cooperative-type artisanal units are formed by the grouping of several women with sociological ties (origin, place of residence, etc.) or simply professionals (producers Picture 10. Cassava Cossette and/or processors) and working collectively for their own account. None of these women work there as employees. In this model, the fresh cassava is distributed among women members who are each responsible for all operations for their batch of roots, without specialization of tasks. Deliveries of processed products are generally made twice a week, with the other days devoted to processing tasks into paste or Attiéké. There are also entrepreneurial-type craft units made up of one or more associated wom- en who employ daily worker for the various tasks. This does not exclude the involvement of the female owner(s) in the activity. Picture 11. Cassava grinding In artisanal processing units, the first operations are made with paring knives or grating instruments. The grinding is carried out by small electric or diesel units (Picture 12), installed in the villages or in the urban markets. The pressing stage is provided by small presses (Picture 13). Cooking to make attiéké is done with wood in traditional hearths (Picture 16). Semi-industrial processing units There are two categories of semi-industrial processing units, the cooperative type and Picture 12. Artisanal pressing machine entrepreneurial type. Semi-industrial units are existing artisanal units that use improved production tools and innovative equipment in processing. These include electric grind- ers, crumblers, semolina- calibrators, improved traditional stoves or ovens with a biogas production system, electric or solar-type dryers in greenhouses. These units most often work below their installed capacity, because of challenges to develop regular sourcing of raw materials and to mobilize financial resources for their activities. 9.2. Innovation in cassava processing I2T has developed a complete set of equipment for cassava processing. The complete Picture 13. Crumbling stage set for processing cassava into semoulina (attiéké) has a capacity of processing 100 kg of fresh attiéké per hour and costs about 12 million FCFA. Additional equipment (dryer using gas) to produce dry semoulina (attiéké) with a capacity of up to 250 kg per hour costs around 11 million FCFA. The complete set for processing cassava into paste can cost up to 14 million FCFA. Other private equipment providers can provide the same equipment at a cost that is 15- 20% lower, but likely with lower quality standards. Picture 14. Drying stage of cassava semolina 19 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing 9.3. Optimal cassava processing units for small and medium market players There are two potential optimal models that can be used to tap into this market, consid- ering current constraints linked to the sector: 1. Cooperative model 2. Entrepreneurial model. Picture 15. Cooking stage of cassava semolina Table 9. Optimal models of cassava processing units Cooperative-type small Entrepreneurial type Industrial Criteria processing units Units Type of Shared or owned equipment Owned equipment equipment Picture 16. Pressing stage (hydraulic press) 0.25 - 1 t/h of fresh roots of Installed capacity 1.5 – 2 t/h of fresh roots of cassava cassava Automatic (Mechanization) Greater than 50% Greater than 70% level Sourcing of raw Member producers Partner farmer organisations materials Cassava flour (including for baking), Main products Fresh attiéké, Placali flour attiéké (including dehydrated), Picture 17. Grinding stage- semi-industrial industrial starch Mode of Cooperative type Entrepreneurial type governance Type of labor Employees Employees used Wholesale and semi- Type of sale Wholesale and semi-wholesale wholesale Large markets and secondary Main markets Major cities and export markets towns Picture 18. Cooking stage on an improved stove Picture 19. Improved cooker for cassava semolina by I2T Picture 20. Improved pressing (250 kg/h) by I2T Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 20 21 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing There are strong opportunities and benefits for financial institutions in funding women-led cooperatives in the staple food sector in Côte d’Ivoire. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 22 Part 5: Opportunities for Financing in Farming and Processing 1. Financing Constraints For MSMEs In The Target Value Chains Current opportunities for financing are more prevalent for traders and marketers. Farmers and processors, on the contrary, only have access to limited support. Some mi- crofinance institutions have been involved in lending in this space, but financing is not adapted to the food crop sector. Financing constraints include: For farming: i. The seasonality of activities is not accounted for in current financing models. As a result, the process and procedure to analyze loan requests are inappropriate ii. Limited involvement by some financing institutions (microfinance) in financing SHFs iii. The limitation of bank loans to short term funding (working capital), with limited CAPEX funding for long-term investments such as irrigation systems, tractors iv. Limited information about farming activities v. High and punitive collateral requirements vi. Buyer contract requirements or need to provide evidence of secured market outlets vii. Lack of data on the value chains. For processing: A range of loan i. Seasonality of most produce coupled with limited storage facilities and/or products would high product perishability be applicable ii. Limited information on opportunities in processing for the target value chains. to the three For example, there are very few players in plantain processing while the asso- value chains, ciated funding opportunities are vast alongside funding iii. Available bank loans limited to short-term funding (working capital), limited CAPEX funding for long-term investments such as processing equipment. and financing Women processors rely heavily on subsidies or grants to acquire equipment. programmes with iv. High and punitive collateral requirements other ecosystem v. Buyer contract requirements or need to provide evidence of secured market players. outlets. 23 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing 2. Possible Financial Products Taking into account the gaps identified in the market and information on current products offered by financial institutions to agri enterprises, we recommend the following loan products. These would be applicable to the three value chains. Products for farming Products for processing Input financing Stock financing Long-term CAPEX loans (3-year tenure) Long-term CAPEX loans (3-year tenure) Equipment leasing loans Equipment leasing loans Invoice discounting Invoice discounting Contracted crop loans LPO financing Project savings loans (2 or 3 times the amount saved as collateral) In addition to the products above, financing institutions can leverage funding and financing programs with other ecosystem players to reduce the risks of lending to agri enterprises. Some options that can be explored include: - Financing with guarantees through donor guarantee programmes - Leveraging or creating add-on services, both financial and non-financial, such as business mentorship/coaching programs, agro- nomic advisory, crop insurance etc. 3. Risks and How to Mitigate Such Risks Risks Mitigation proposals Categories Details • Evidence for land ownership (titles, leasing contract, etc.) for both farmers and processors Issues with land tenure rights • Few SHFs have land titles. Recourse to cooperatives as a third party can be envisioned to attest the ownership Risks in primary production activities • Crop insurance requirements Harvest loss due to climatic hazards • Agronomic advisory requirements or experience in the value chain Harvest loss due to pests and diseases • Agronomic advisory requirements or experience in the value chain • Ensure that processors have a clear maintenance plan with Equipment down times equipment providers and well-trained machine operators Risks in processing activities • Ensure that some workers have basic training in quality insurance Food safety • Ensure obtaining national certifications to sell in formal targeted market segments • Good management through training and support Management risks Unreliable management of operations • Contract all relationships with suppliers and customers • Keep financial accounts, even if simplified • Ensure that farmers/processors have a formal contract with buyers Market risk Price risks • Exploit secondary data of national sources of market projections (OCPV, Ministry of Agriculture, Anader) Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 24 Part 6: Business Models for Lending to the Select Value Chains 1. Farming Enterprises During the evaluation of lending decisions, intensive farming systems with the potential to increase yields and reduce cost per unit of production, as well as businesses with the ability to farm through irrigation should be considered specifically. They offer less risky opportunities for funding due to the ability to generate cash throughout the year. To improve the lending process to farming cooperatives, financial institutions need to develop a scoring tool to evaluate target clients based on their characteristics and financing needs. This tool could be a combination of qualitative and quantitative criteria that enable a financial institution to classify a cooperative according to their risk profile, e.g., as high risk, medium risk or low risk based on their level of technical skills and expertise with different crops, frequency, and regularity of their cash flows, among other factors. The quantitative assessment of farming operations of a cooperative can be performed using the Financial Evaluation Tool (which has been prepared together with this report. More information is available on request. The tool provides indicative gross margins based on certain parameters, for example, land size, use of low yield or high yield varieties and use of manual or mechanized operations. Maize farming The criteria in the table below are useful to develop a scoring model for the qualitative assessment of maize farming business models: Table 10. Guidelines for analysing maize farming models Category Criteria to check References for Financial Institutions Farming Products • Sale of maize grain operations Cooperatives’ agro- • The location determines the planting season : Preference for North, Center, West ecological location Minimum farm size • At least 0.25 ha for smallholder farmers • At least 5 ha for medium scale farmers Planting Seasons • June/July in the North • March/April in the South; the second season (short) might be a riskier proposition Seed type • OPV (5-10 t/ha) with less than 3 years for re-use • Hybrid (10-15 t/ha) • Traditional ; NB : traditional varieties may provide erratic yield and are a riskier proposition Land/fertility • Preference for pure cropping in rotation with legumes preservation • Fallow system Fertiliser used per ha • OPV and hybrid will require fertiliser use for optimal production • 4 bags of NPK for 1 Ha • 2 bags of Urea for 1 Ha • Manure use as complement or to replace fertilizer, especially for SHFs Disease and pest control Check for pesticide use especially for the control of the fall armyworms Risk management of • Insurance coverage to mitigate risks, especially in the North erratic rainfall Type of labour force • Family labour force for small farms, hired labour force for medium scale and large scale farms used Harvest period September/October in the North 25 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing Governance Cooperative vs Individu- • Membership of cooperatives over the past 3 years, with sales through the cooperative type al (medium scale farms) • Individual sale might bear a higher price risk for SHF Years in farming • Given the level of production risk, preference for at least 3 production cycles for a smallholder farmer. Start-ups bear higher risks. Technical assistance/ • Check if farmers have technical expertise (education) and/or access to advisory services Advisory (ANADER, private advisory, consultants, etc.) that provide knowledge and skills transfer on best agricultural practices to improve yields, increase income, reduce costs, with the overall objective of reducing production risks. Marketing Sale period • Check if farmers plan to sell at harvest, or during the lean season. strategy Storage technologies • Assess risk of post-harvest losses due to insufficient storage technologies, if farmers plan to sell months after harvest. Good storage practices include the use of biopesticides and hermetic bags hermetic containers (bags, silos, etc.). Market access • Preference for group sales through cooperative for SHF • Individual or group sales for medium/large scale farms Expected sale price • Linked to sale period. High prices during the lean season. Historic prices may be available from OCPV, ANADER, Ministry of Agriculture to cross-check projections and reliability Contract arrangement • Check if any contract arrangements exist with buyers Plantain farming As described in Section 7.3 of this report, growers should prioritise the increase in production during the lean season. The criteria in the table below can be useful to develop a scoring model for a qualitative assessment of plantain farming business models. Table 11. Guidelines for analysing plantain farming models Category Criteria to check References for financial institutions Farming Farms’ agro-ecological • High potential regions: Haut-Sassandra, Agnéby-Tiassa, Loh-Djiboua and Marahoué, Sud- operations location Comoe Minimum farm size and • Preference for irrigated plantain farming (5 ha or more) farming system • Rainfed plantain could be considered if intercropped with legumes and vegetables Planting season • Preference for lean season harvesting for irrigated plantain (May/July) Seed type • Vitroplants should be preferred instead of traditional plants (PIITA 3, FIA 21, Corne 3/5, Big banga) Fertiliser used per ha • Manure as complement to fertilizer Disease and pest control • Check practices for cercosporia disease Risk management of • Not applicable to irrigated farms, insurance coverage to mitigate risks for rainfed plantations erratic rainfall Type of labour force • Family labour force and hired labour force depending on the scale and intensity of production used Governance Cooperative vs Individu- • Cooperative vs Individual type al (medium scale farms) Year in farming • Can include start-up if technical assistance exists, given the market potential Technical assistance/ • Check if farmers have technical expertise (education) or benefit from advisory services Advisory (ANADER, private advisory, consultants, etc.) Marketing Sale period • Lean season is preferable for sales strategy Contract arrangement • Contracts with large distribution networks (Carrefour, Socofrais, Prosuma, CDCBI, etc.) or with buyers women groups (wholesalers in central markets) • Individual sales or group sales depending on the farming system Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 26 Cassava farming As described in Section 8.3 of this report, intensive production systems that use improved planting material and good agronomic practices offer a better value proposition for lending. The criteria in the table below can be used to develop a scoring model for the qualitative assessment of cassava farming business models. Table 12: Guidelines for analysing cassava farming models Category Criteria to check References for financial institutions Farming Products • Whole cassava roots in a crate of about 20 kg each operations Farms’ agro-ecological • Almost everywhere in Côte d’Ivoire, with preference for South, West, Central regions location Minimum farm size and • At least 0.25 ha for SHF farming system • At least 5 ha for medium to larger scale farmers Planting season • April/July in the North • Preference for March/April in the South; the second (short) season might be a riskier proposition because of the high sensitivity of young plants to water deficits Seed type • Improved varieties: 25-45 t/ha with high resistance to plant diseases (Yavo, etc.) • Traditional varieties might provide erratic yields and are a risky business model Fertiliser used per ha • NPK : 300 Kg/ha preferably Soil fertility concerns • Preference for pure cropping in rotation with cereals such as rice and maize or legumes Disease and pest control • Non-selective herbicide used before planting • Pest control with good agronomics practices, such as the use of good quality seeds Risk management of • Less risky since cassava is less water demanding erratic rainfall Type of labour force • Family labour force and community help for SHF used • Hired labour force (may include community help) especially for medium to large scale farms, but also option for SHF • Some operations can be mechanised Governance Cooperative vs Individu- • Preference for SHF who are members of a cooperative type al (medium scale farms) • Individual or members of cooperative for medium to large scale farmers Year in farming • Can include start-ups if technical assistance exists, given the market potential Technical assistance/ • Check if farmers have technical expertise (education) or benefit from advisory services Advisory (ANADER, private advisory, consultants, etc.) through own funding, a project, or the cooperative Marketing Storage technologies • Preference for harvest sales strategy • Possibility to store for 2 weeks to 1 month in crates with wood pounder Sales • Individual sales or group sales depending on the farming system • Preference for SHF selling in groups through cooperatives, showing evidence of contract arrangements with customers • Individual sales or group sales Market • Small individual/processing groups • Industrial cassava processors • Women groups (traders) aggregating and selling fresh cassava 27 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing 2. Processing Enterprises The evaluation of lending decisions should put a specific focus on effective and efficient processing systems with the potential to reduce cost per unit of production and increase productivity (output). To improve the lending process to processing cooperatives, financial institutions need to develop a scoring tool to evaluate target clients based on their characteristics, financing needs. This tool should be a combination of qualitative and quantitative criteria that enable a financial institution to classify cooperatives according to their risk profiles, such as high risk, medium risk or low risk based on their level of technical skills and expertise in processing and regularity of their cash flows, among other criteria. Quantitative assessment can on processing cooperatives can be conducted using the Financial Evaluation Tool (which has been pre- pared together with this report. More information is available on request. Which provides indicative gross margins based on certain parameters, for example, processing capacity per day and the unit’s utilization rate. Maize processing The criteria in the table below could be useful to develop a scoring model for the qualitative assessment of maize processing business models. Table 13. Guidelines for analysing maize processing models Category Criteria to check References for financial institutions Farming Main products Preference for : operations • Maize flour (small to medium scale) • Animal feed (medium to large scale) Location of the Location determines ease of access to key raw material (maize) and markets: processing units • Maize flour: North, center, South • Animal feed: Center, South, West, East Ownership of • Leasing equipment for main operations such as grinding, and milling might be a riskier equipment business model Strategy for raw • Contracts with farmer organizations or sourcing from large scale farmers material sourcing • Sourcing period: During lean season (May-July) might be a riskier business model Labour force • Hired labour force or cooperative members (for processing units) • Check if machine operators are well trained by equipment providers • Check if workers are trained on food safety (basic to advanced, depending on the size of the processing unit) Governance Cooperative vs • Cooperative of maize farmers also involved in processing type Individual • Individual medium scale processing unit • Corporate type processor for medium and large-scale industrial operations Management • Cooperative or enterpreneurial Years in processing • Start-ups are riskier than businesses with several years of experience (at least 2 years ideally) Technical assistance/ Improved value proposition with technical assistance in: Advisory • Maintenance of Equipment • Training and support in product quality & certification, if necessary Marketing Products • Small scale processors: Unbranded/branded maize flour depending on main buyers strategy • Medium and large-scale processors: Branded products preferred Contract arrangement • Animal feeds: Contract arrangement with poultry farmers with buyers • Maize flour: Contract arrangement with wholesalers in large urban cities (Abidjan, Bouake, Yamoussoukro, San Pedro), and local wholesalers; contract arrangements with supermarkets and distribution networks for branded products Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 28 Plantain processing Business models for plantain processing are yet to be proven since the market is still nascent. Financial institutions need to assess evidence of secured market access. Relevant criteria are provided in the table below and can be used to develop a scoring model for the qualitative assessment of plantain processing business models. Table 14. Guidelines for analysing plantain processing models Category Criteria to check References for financial institutions Farming Main products • Preference for plantain flour (ripe and unripe) operations • Processing equipment can be used to process other products, such as maize and cassava flour, to increase equipment utilisation Location of the • In plantain production areas or major consumption markets (Haut-Sassandra, Agnéby-Tiassa, processing units Loh-Djiboua and Marahoué, Sud-Comoe, Abidjan, Bouake, Yamoussoukro) Ownership of • Processors need to own the grinding and milling machines equipment • Leasing equipment for main operations such as grinding, and milling might be a riskier business model Strategy for sourcing • Contracts with farmer organizations or sourcing from large scale farmers (and securing) of raw • Sourcing period: On-season (November-December) material • Sourcing during the lean season might be a riskier business model Labour force • Hired labour force • Check if machine operators are well trained by equipment providers • Check if workers are trained on food safety Governance Cooperative vs • Cooperatives of plantain farmers that are also involved in processing type Individual • Individual/corporate entrepreneurs Management • Cooperative vs Individual Year in processing • Start-ups can be considered, especially if they have experience with other products (cassava, maize) Technical assistance/ • Maintenance of equipment Advisory • Training and support in certification/quality Marketing Products • Branded plantain flour strategy • Products certified by national standard organizations (especially for the niche market children’s food) Contract arrangement • Target markets: Small/medium scale distribution networks and supermarkets, since products with buyers are still at early stage 29 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing Cassava processing Cassava processing is a competitive market given the large number of market players. For businesses, the value proposition lies in processing cassava into semi-finished and finished products with a strategy to supply to integrated market segments (formal and informal markets). Relevant criteria are provided in the table below and can be used to develop a scoring model for the qualitative assessment of plantain processing business models. Table 15: Guidelines for analysing cassava processing models Category Criteria to check References for financial institutions Farming Main products Preference for : operations • Fresh cassava semolina (attiéke) with an option for dried semolina • Cassava paste (placali) and cassava flour Processing capacity • At least 250 kg/h of raw cassava processed for small scale processing units • Larger processing units may reach 1.5 to 2 tons/h Location of the • Main cassava producing areas or large urban markets due to perishability concern processing units Ownership of • Contracts with farmer organizations or sourcing from large scale farmers equipment • Sourcing period: On-season (March-September) • Sourcing of raw material might include storing semi-finished products (cassava paste) Strategy for sourcing • Hired labour force (and securing) of raw • Check if machine operators are well trained by equipment providers material • Check if workers are trained on food safety Labor force • Hired external labor or members of the cooperative (paid) • Check if machine operators are well-trained by equipment provider Governance Cooperative vs • Cooperatives of cassava farmers also involved in processing type Individual • Cooperatives of cassava processors (e.g. women groups) • Individual entrepreneurs or companies for medium to large processing units Management • Cooperative vs Individual Year of experience • At least 3 years, taking into account traditional processing Technical assistance/ • Clear strategy for equipment maintenance Advisory • Training and support in product quality & certification, if necessary Marketing Products • Branded plantain flour strategy • Products certified by national standard organizations (especially for the niche market children’s food) Target market • Target markets: Small/medium scale distribution networks and supermarkets, since products are still at early stage Sale period • All year round Distribution • Individual sales at cooperative or the entrepreneur level Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 30 Part 7: Opportunities and Constraints for Technology in the Value Chains The table below summarises some of the local suppliers of the technologies required for the mechanisation of farming and processing activities in the staple food sectors maize, cassava, and plantain: Category Name of institution/ Person of contacts E-mail company Processing I2T Konate Namory info@i2t.ci Agro-industrial +225 05 56 977 999 Engineer bakayoko.namory@i2t.ci Head of Roots, Tuber, and Cereal Sem enterprises Pangni Paul ppangni@sementreprises.ci CEO +225 01 03 31 31 34 Head of the platform of private equipment suppliers Conceptor Industrie Kouakou Alexis +225 0709825220 SOMEG Kone Brama +225 0707017011 SOTIC Bakayoko +225 0708756100 Aboubacar Irrigation ASFA Narcisse Adou systems Ou Tanguy Kouakou IRRIPRO Sarl Zeanny Rigob +225 01 401 459 16 Ivoire Irrigation +225 07 47 14 40 76 Financial institutions can It is also possible for enterprises to import equipment and machinery from international improve financing suppliers based in the UK, China, South Africa, India, among others. Entrepreneurs need decisions with to obtain quotations from different suppliers for cost comparison, as well as to ensure the purchase and use of appropriate and the most efficient technologies. scoring tools that comprise qualitative and quantitative criteria. 31 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing There are various constraints and opportunities related to the proposed technologies used in the maize, cassava and plantain value chains. These are summarised in the table below: Category Constraints Opportunities Maize • Suitable equipment for drying operations remains • The full set of equipment to process maize into flour processing a constraint. Even with the technological expertise is readily available, such as by I2T (public entity). equipment available from public entities such as I2T, drying • Private equipment providers have also developed equipment (with gas) is quite expensive for small and expertise in providing grinding and mixing machines medium processors (in the early stage). A few private that can be used in the production process. equipment suppliers can provide large capacity drying units. Cassava • Suitable equipment for drying operations (for dried • Cassava processing equipment is quite well processing cassava semolina) remains a constraint. developed and many providers are present. equipment • Even with the technological expertise available • Institutional players such as I2T have developed full from public entities such as I2T, drying equipment sets of equipment to process cassava to semolina (with gas) is quite expensive for small and medium (dried and fresh). processors (in the early stage). • There are also private providers with expertise, given • Few private equipment suppliers can provide large the growing demand. Private providers are more capacity drying units. flexible in adjusting their service to the request of their customers. Plantain • There are no major innovations in plantain • Multi-crop technologies developed by I2T can be processing processing in the country. used for processing plantain into flour. equipment • Technologies for the artisanal processing of plantain exist but require further promotion in the market. Irrigation • Profitable irrigation systems require an optimal land • There are several providers of irrigation systems system size, which is usually above the average land size suitable for different farming systems. These owned by smallholder farmers, especially women. suppliers can also provide maintenance services. • The implementation of an irrigation system requires a viable water source. If this source is not readily available, there is a need for water drilling that might be expensive for smallholder farmers and is therefore only suitable for large farm sizes to be profitable. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 32 Systematically assessing a variety of profile criteria complements the financial evaluation of potential clients. 33 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 34 Part 8: Financial Feasibility Results A financial evaluation tool has been developed to assist financial institutions in carrying out a high-level assessment of clients operating within the maize, cassava, and plantain value chains. The tool provides a quantitative analysis that can support lending decisions. The financial models can be used for a detailed evaluation of the viability and profitability of funding enterprises in the three value chains in question and provide indicative cash flow projections of respective cooperatives. They comprise various assumptions that can vary over time. Users of these models can adjust the assumptions to assess the level of risk and compare performance. For a comprehensive evaluation, detailed 5-year financial models has been prepared to evaluate the viability and estimate the funding requirements by enterprises operating in the three value chains. Revenues and associated costs would be expected to reach a steady state growth after 10 years, however, this is not covered in the financial models. Financial institutions need to complement the financial evaluation tool and financial models with the quantitative/qualitative assessment of the profile of potential clients. The screening of client profiles may include criteria such as the availability of historical records, sound management structures etc. When assessing the feasibility and viability of offering financial products and services within the three value chains, a focus should be placed on high margin businesses whilst also considering results from additional assessment undertaken. Methodology and global assumptions The assumptions used in the financial models are as follows: Inflation Underlying inflation is assumed to be 4.10% per annum for the projected period. Exchange rates The financial model is based on a conservative estimate, assuming an average rate of 588 XOF/1 USD. The model further assumes that the US dollar will gain value compared to the XOF and as such a devaluation of 10% has been used in the projections. Corporate tax & tax Allowances Corporation tax in Côte d’Ivoire is 25%. The model computes tax on the income earned by the enterprises and assumes capital allowances on certain capital expenditure items. The results of the financial feasibility study on each of the three value chains are presented below: 35 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing 1. Maize Value Chain A. Farming enterprises Small-scale operations The table below summarises the indicative performance of a small-scale farming enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 3,040,452 3,165,111 3,294,880 3,429,970 3,570,599 EBITDA 459,831 478,830 498,589 519,142 540,524 Net Profit 24,234 287,045 314,128 342,218 370,714 Ratios Gross Profit Margin 21% 21% 21% 21% 21% Net Profit Margin 1% 9% 10% 10% 10% Debt to EBITDA 407% 43% 16% 5% 0% Cash Flow Margin 3% 11% 11% 11% 11% Balance Sheet Total Non-Current Assets 175,000 153,125 133,984 117,236 102,582 Total Current Assets 49,234 321,472 612,995 924,453 1,255,756 Total Shareholder Funds 44,234 331,279 645,407 987,625 1,358,338 Total Current Liabilities - - - - - Total Non-Current Liabilities 180,000 143,318 101,573 54,065 0 Cash Flow Items Cash Flow from Operations 102,618 359,971 371,339 382,759 394,764 Closing Cash Balance 49,234 321,472 612,995 924,453 1,255,756 Financing Requirements Working Capital 602,426 627,125 652,838 679,604 707,468 Capex 200,000 - - - - Source: Detailed Small Scale Maize Farming Model Summary key drivers • Total area planted in each planting period is assumed to be 5 ha. • Assumes the farm relies on rainfall and as a result, has only one cropping cycle in a year and a crop yield of 3 tons per ha. Assumes a crop loss of 20% in any given season. • Assumes 100% of maize grain is sold at farm gate and in markets. Selling price of maize grain per kg is assumed to be an average of XOF 250 in Year 1, thereafter increases in line with inflation. • Direct cost assumptions include cost of maize seed, fertiliser, chemicals, labour costs, post-harvest management etc. • Assumes that the farm is not fully mechanised and largely relies on manual cultivation techniques. As such, the business has minimal capital expenditure requirements. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 36 Medium-scale operations The table below summarises the indicative performance of a medium scale farming enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 62,900,053 65,478,955 68,163,592 70,958,299 73,867,589 EBITDA 14,907,869 15,675,203 16,446,299 17,226,820 18,021,461 Net Profit 3,393,438 6,150,471 6,378,592 7,902,710 10,066,561 Ratios Gross Profit Margin 51% 51% 51% 51% 51% Net Profit Margin 5% 9% 9% 11% 14% Debt to EBITDA 234% 178% 120% 61% 0% Cash Flow Margin 24% 24% 20% 19% 19% Balance Sheet Total Non-Current Assets 32,595,850 27,514,432 23,325,709 19,851,788 16,954,230 Total Current Assets 9,623,171 13,739,797 16,209,610 18,370,916 20,847,585 Total Shareholder Funds 7,273,438 13,423,909 19,802,501 27,705,211 37,771,772 Total Current Liabilities 25,583 26,632 27,723 28,860 30,043 Total Non-Current Liabilities 34,920,000 27,803,689 19,705,096 10,488,633 0 Cash Flow Items Cash Flow from Operations 14,933,452 15,676,252 13,844,952 13,463,715 13,736,382 Closing Cash Balance 9,623,171 13,739,797 16,209,610 18,370,916 20,847,585 Financing Requirements Working Capital 23,937,024 24,918,442 25,940,098 27,003,642 28,110,791 Capex 38,800,000 - - - - Source: Detailed Medium Scale Maize Farming Model Summary key drivers • Total area planted in each planting period is assumed to be 15 ha. • Assumes the farm relies on rainfall for cultivation but is supplemented by irrigation and as such, has two cropping cycles in any given year. Crop yields are estimated at 5 tons per ha if rainfed and 8 tons per ha if irrigated. Assumed crop loss of 10% in any given season. • Assumes 100% of maize grain is sold to wholesalers and aggregators. Selling price of maize grain per kg is assumed to be an average of XOF 350 in Year 1, thereafter increases in line with inflation. • Direct cost assumptions include cost of maize seed, fertiliser, chemicals, labour costs, post-harvest management etc. • Assumes that the farm is mechanised and therefore requires expenditure in installation of irrigation infrastructure and the purchase of farm equipment. 37 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing B. Processing enterprises Small-scale operations The table below summarises the indicative performance of a small-scale processing enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 170,833,163 339,507,615 381,477,223 397,117,789 413,399,619 EBITDA 30,199,976 81,075,099 94,514,518 98,389,613 102,423,587 Net Profit 23,376,867 55,994,258 66,922,492 70,691,840 74,612,441 Ratios Gross Profit Margin 20% 25% 26% 26% 26% Net Profit Margin 14% 16% 18% 18% 18% Debt to EBITDA 78% 24% 15% 8% 1% Cash Flow Margin 15% 17% 19% 19% 19% Balance Sheet Total Non-Current Assets 21,879,180 19,088,733 16,665,607 14,557,715 12,721,539 Total Current Assets 27,581,118 82,214,674 146,319,331 213,149,782 282,800,065 Total Shareholder Funds 25,911,967 81,906,225 148,828,717 219,520,557 294,132,999 Total Current Liabilities 732,431 1,230,911 1,281,378 1,333,915 1,388,605 Total Non-Current Liabilities 22,815,900 18,166,271 12,874,842 6,853,024 (0) Cash Flow Items Cash Flow from Operations 24,981,573 57,885,203 71,063,897 73,773,869 76,577,233 Closing Cash Balance 22,262,847 72,802,929 136,521,704 202,950,452 272,182,563 Financing Requirements Working Capital 5,036,255 8,977,280 9,349,222 9,732,540 10,131,574 Capex 25,100,000 - - - - Source: Detailed Small Scale Maize Processing Model Summary key drivers • Assumes processing capacity is 0.5 tons per hour, based on equipment provided by I2T, as well as other global equipment providers. • Equipment utilisation is capped at 85% in the base case scenario. • Assumes the following selling prices in Year 1, thereafter increases in line with inflation: - Grade 1 Maize Meal: XOF 500 per kg - Grade 2 Maize Meal: XOF 450 per kg - Maize Gran (by product): XOF 220 per kg - Maize Germ (by product): XOF 235 per kg. • Direct cost assumptions include cost of maize grain, packaging, power, electricity, transport, labour costs, etc. • Assumes that the enterprise will require equipment intended for small-scale production of maize flour, thus minimal capital expenditure requirements. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 38 Medium-scale operations The table below summarises the indicative performance of a medium scale/industrial processing enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 450,714,128 901,194,653 1,012,599,478 1,054,116,057 1,097,334,815 EBITDA 30,412,332 181,474,155 218,848,893 227,821,697 237,162,387 Net Profit (99,616,053) 60,130,723 121,581,094 157,478,729 141,715,974 Ratios Gross Profit Margin 29% 32% 32% 32% 32% Net Profit Margin -22% 7% 12% 15% 13% Debt to EBITDA 1746% 260% 139% 63% 7% Cash Flow Margin -9% 14% 21% 21% 17% Balance Sheet Total Non-Current Assets 459,583,350 400,659,744 349,476,295 304,969,879 266,234,805 Total Current Assets 78,360,144 138,673,947 144,359,578 185,320,326 238,412,936 Total Shareholder Funds 6,938,947 67,069,670 188,650,764 346,129,493 487,845,467 Total Current Liabilities 104,784,547 132,902,960 64,672,343 16,140,514 16,802,275 Total Non-Current Liabilities 426,220,000 339,361,061 240,512,767 128,020,198 0 Cash Flow Items Cash Flow from Operations (39,283,918) 127,390,614 213,773,921 222,538,652 184,144,183 Closing Cash Balance (96,120,653) (118,008,804) (49,167,526) 35,042,004 81,973,204 Financing Requirements Working Capital 69,722,069 123,825,810 128,941,861 134,228,478 139,731,845 Capex 527,500,000 - - - - Source: Detailed Medium Scale Maize Processing Model Summary key drivers • Assumes processing capacity is 1.25 tons per hour, based on equipment provided by I2T, as well as other global equipment providers. • Equipment utilisation is capped at 85% in the base case scenario. • Assumes the following selling prices in Year 1, thereafter increases in line with inflation: - Grade 1 Maize Meal: XOF 500 per kg - Grade 2 Maize Meal: XOF 450 per kg - Maize Gran (by product): XOF 220 per kg - Maize Germ (by product): XOF 235 per kg. • Direct cost assumptions include cost of maize grain, packaging, power, electricity, transport, labour costs, etc. • Assumes that the enterprise requires equipment for medium scale production of maize flour, thus significant capital expenditure requirements. Financial models can be used for a detailed evaluation of the viability and profitability of agri enterprises. 39 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing 2. Plantain Value Chain A. Farming enterprises Small-scale operations The table below summarises the indicative performance of a small-scale farming enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 11,875,000 13,255,253 13,798,718 14,364,465 14,953,408 EBITDA 64,021 6,797,865 7,203,158 7,757,236 8,188,841 Net Profit (660,310) 5,263,887 5,371,475 5,793,872 6,124,065 Ratios Gross Profit Margin 7% 57% 58% 59% 60% Net Profit Margin -6% 40% 39% 40% 41% Debt to EBITDA 1538% 2% 1% 1% 0% Cash Flow Margin -1% 41% 39% 41% 41% Balance Sheet Total Non-Current Assets 175,000 153,353 134,611 118,386 103,732 Total Current Assets 169,521 4,619,502 9,968,040 15,730,699 21,815,134 Total Shareholder Funds (640,310) 4,623,578 9,995,053 15,788,925 21,912,990 Total Current Liabilities 804,830 5,959 6,026 6,095 5,875 Total Non-Current Liabilities 180,000 143,318 101,573 54,065 0 Cash Flow Items Cash Flow from Operations (89,870) 5,443,791 5,405,235 5,819,304 6,141,026 Closing Cash Balance (789,201) 4,588,986 9,936,274 15,697,630 21,780,709 Financing Requirements Working Capital 153,891 24,557 25,741 26,974 28,549 Capex 200,000 - - - - Source: Detailed Small Scale Plantain Farming Model Summary key drivers • Total area planted is assumed to be 5 ha. • Assumes the farm relies on rainfall and crop yield is estimated at 10 tons per ha for hybrid variety. Assumes a crop loss/ wastage of 20%. • Selling price per ton is assumed to be XOF 250,000 in Year 1, thereafter increases in line with inflation. • Direct cost assumptions include cost of suckers, fertiliser, chemicals, labour costs, post-harvest management etc. • Assumes that the farm is not fully mechanised and largely relies on manual cultivation techniques. As such, the business has minimal capital expenditure requirements. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 40 Medium-scale operations The table below summarises the indicative performance of a medium scale farming enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 67,500,000 71,578,364 74,513,077 77,568,113 80,748,406 EBITDA 21,832,592 43,235,410 45,836,241 48,984,434 52,752,010 Net Profit 8,443,203 27,553,965 27,872,958 31,829,360 36,057,663 Ratios Gross Profit Margin 45% 72% 73% 74% 74% Net Profit Margin 13% 38% 37% 41% 45% Debt to EBITDA 162% 65% 44% 22% 0% Cash Flow Margin 31% 53% 47% 48% 49% Balance Sheet Total Non-Current Assets 33,033,350 27,972,205 23,855,762 20,485,370 17,551,175 Total Current Assets 14,779,596 40,137,749 63,924,397 89,789,127 118,157,085 Total Shareholder Funds 12,373,203 39,927,168 67,800,126 99,629,486 135,687,149 Total Current Liabilities 69,744 20,802 21,005 21,214 21,112 Total Non-Current Liabilities 35,370,000 28,161,984 19,959,027 10,623,796 (0) Cash Flow Items Cash Flow from Operations 20,895,384 37,586,984 35,166,554 37,244,360 39,747,299 Closing Cash Balance 13,772,644 39,972,966 63,752,858 89,610,555 117,971,192 Financing Requirements Working Capital 937,208 143,981 150,534 157,358 164,782 Capex 39,300,000 - - - - Source: Detailed Medium Scale Plantain Farming Model Summary key drivers • Total area planted is assumed to be 15 ha. • Assumes the farm relies on rainfall and crop yield is estimated at 15 tons per ha for hybrid variety. Assumes a crop loss/wastage of 10%. • Selling price per ton is assumed to be XOF 300,000 in Year 1, thereafter increases in line with inflation. • Direct cost assumptions include cost of suckers, fertiliser, chemicals, labour costs, post-harvest management etc. • Assumes that the farm is mechanised and requires expenditure in installation of irrigation infrastructure, purchase of tractors and other farm equipment. 41 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing B. Processing enterprises Small-scale operations The table below summarises the indicative performance of a small-scale processing enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 54,516,000 69,255,648 84,110,984 100,068,040 130,213,537 EBITDA 20,123,514 29,774,073 40,159,643 51,346,779 73,315,508 Net Profit 13,936,627 19,404,127 26,156,336 35,409,715 52,781,382 Ratios Gross Profit Margin 66% 66% 68% 69% 70% Net Profit Margin 26% 28% 31% 35% 41% Debt to EBITDA 113% 61% 32% 13% 0% Cash Flow Margin 36% 36% 36% 39% 42% Balance Sheet Total Non-Current Assets 21,879,180 19,088,733 16,665,607 14,557,715 12,721,539 Total Current Assets 17,408,447 34,953,392 58,241,425 89,737,214 137,501,748 Total Shareholder Funds 16,471,727 35,875,854 62,032,190 97,441,905 150,223,287 Total Current Liabilities - - - - - Total Non-Current Liabilities 22,815,900 18,166,271 12,874,842 6,853,024 (0) Cash Flow Items Cash Flow from Operations 19,353,657 24,679,971 30,422,955 38,615,122 54,683,103 Closing Cash Balance 16,638,590 33,973,439 57,051,273 88,321,273 135,659,254 Financing Requirements Working Capital 769,857 979,953 1,190,153 1,415,942 1,842,494 Capex 25,100,000 - - - - Source: Detailed Small Scale Plantain Processing Model Summary key drivers • Assumes processing capacity is 0.25 tons per hour, based on equipment provided by I2T, as well as other global equipment providers. • Equipment utilisation is capped at 85% in the base case scenario. • Assumes the following selling prices in Year 1, thereafter increases in line with inflation: - Plantain Flour: XOF 2,000 per kg • Direct cost assumptions include cost of plantain, packaging, power, electricity, transport, labour costs, etc. • Assumes that the enterprise requires equipment intended for small-scale production of cassava flour, thus minimal capital expenditure requirements. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 42 Medium-scale operations The table below summarises the indicative performance of a medium scale/industrial processing enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 446,040,000 566,637,120 688,180,782 818,738,508 1,065,383,483 EBITDA 253,633,315 337,097,678 428,784,158 527,422,268 717,809,252 Net Profit 123,381,990 221,525,772 334,440,433 365,859,460 491,865,453 Ratios Gross Profit Margin 77% 76% 77% 77% 77% Net Profit Margin 28% 39% 49% 45% 46% Debt to EBITDA 190% 114% 64% 28% 0% Cash Flow Margin 52% 58% 61% 53% 50% Balance Sheet Total Non-Current Assets 459,583,350 400,659,744 349,476,295 304,969,879 266,234,805 Total Current Assets 198,001,844 381,196,264 655,978,557 940,179,603 1,327,483,996 Total Shareholder Funds 176,659,490 398,185,262 732,625,694 1,098,485,154 1,590,350,607 Total Current Liabilities 1,428,204 1,889,553 2,252,295 2,641,605 3,368,194 Total Non-Current Liabilities 479,497,500 381,781,194 270,576,863 144,022,722 0 Cash Flow Items Cash Flow from Operations 230,111,341 331,186,885 422,428,220 431,348,695 528,034,982 Closing Cash Balance 173,051,666 349,873,944 617,937,558 894,921,646 1,268,592,022 Financing Requirements Working Capital 23,564,835 29,491,194 35,858,124 42,697,568 55,626,961 Capex 527,500,000 - - - - Source: Detailed Medium Scale Plantain Processing Model Summary key drivers • Assumes processing capacity is 1.5 tons per hour, based on equipment provided by I2T, as well as other global equipment providers. • Equipment utilisation is capped at 85% in the base case scenario. • Assumes the following selling prices in Year 1, thereafter increases in line with inflation: - Plantain Flour: XOF 2,000 per kg. • Direct cost assumptions include cost of plantain, packaging, power, electricity, transport, labour costs, etc. • Assumes that the enterprise requires equipment for medium scale production of cassava flour, thus significant capital expenditure requirements. 43 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing 3. Cassava Value Chain A. Farming enterprises Small-scale operations The table below summarises the indicative performance of a small-scale farming enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 4,143,144 4,313,013 4,489,846 4,673,930 4,865,561 EBITDA 677,300 705,069 733,977 764,070 795,397 Net Profit 394,283 396,746 444,016 492,392 539,098 Ratios Gross Profit Margin 27% 27% 27% 27% 27% Net Profit Margin 10% 9% 10% 11% 11% Debt to EBITDA 25% 19% 13% 7% 0% Cash Flow Margin 14% 13% 13% 13% 13% Balance Sheet Total Non-Current Assets 161,875 141,641 123,936 108,444 94,888 Total Current Assets 417,408 800,458 1,223,565 1,687,504 2,190,147 Total Shareholder Funds 412,783 809,529 1,253,545 1,745,938 2,285,036 Total Current Liabilities - - - - - Total Non-Current Liabilities 166,500 132,569 93,955 50,010 0 Cash Flow Items Cash Flow from Operations 571,690 564,922 578,869 593,525 609,878 Closing Cash Balance 389,268 771,163 1,193,069 1,655,758 2,157,100 Financing Requirements Working Capital 28,141 29,295 30,496 31,746 33,048 Capex 185,000 - - - - Source: Detailed Small Scale Cassava Farming Model Summary key drivers • Total area planted in each planting period is assumed to be 5 ha. • Assumes one cropping cycle in any given year. • Assumes the farm relies on rainfall and crop yield is estimated at 20 tons per ha. Assumes a crop loss/wastage of 20%. • Assumes 100% of cassava tubers are sold at farm gate and in markets. Selling price of tuber per ton is assumed to be XOF 50,000 in Year 1, thereafter increases in line with inflation. • Direct cost assumptions include cost of stem cuttings, fertiliser, chemicals, labour costs, post-harvest management etc. • Assumes that the farm is not fully mechanised and largely relies on manual cultivation techniques. As such, the business has minimal capital expenditure requirements. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 44 Medium-scale operations The table below summarises the indicative performance of a medium scale farming enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 19,576,354 20,378,984 21,214,522 22,084,318 22,989,775 EBITDA 4,645,436 5,107,654 5,328,610 5,558,665 5,798,191 Net Profit (1,019,399) 301,599 1,367,866 2,948,665 4,686,604 Ratios Gross Profit Margin 64% 66% 66% 66% 66% Net Profit Margin -5% 1% 6% 13% 20% Debt to EBITDA 301% 218% 148% 76% 0% Cash Flow Margin 22% 25% 25% 28% 30% Balance Sheet Total Non-Current Assets 14,395,850 11,917,557 9,924,538 8,310,333 6,993,884 Total Current Assets 2,086,665 2,013,590 2,127,698 2,995,622 4,793,698 Total Shareholder Funds 2,480,601 2,782,200 4,150,066 7,098,731 11,785,335 Total Current Liabilities 1,914 1,992 2,074 2,159 2,247 Total Non-Current Liabilities 14,000,000 11,146,954 7,900,096 4,205,065 0 Cash Flow Items Cash Flow from Operations 4,381,418 5,096,829 5,317,342 6,090,396 6,976,757 Closing Cash Balance 1,820,733 1,736,755 1,839,513 2,695,621 4,481,397 Financing Requirements Working Capital 264,018 274,843 286,112 297,842 310,054 Capex 17,500,000 - - - - Source: Detailed Medium Scale Cassava Farming Model Summary key drivers • Total area planted in each planting period is assumed to be 10 ha. • Assumes one cropping cycle in any given year. • Assumes the farm relies on rainfall and crop yield is estimated at 35 tons per ha. Assumes a crop loss/wastage of 15%. • Assumes 100% of cassava tubers are sold to wholesalers, aggregators etc. Selling price of tuber per ton is assumed to be XOF 60,000 in Year 1, thereafter increases in line with inflation. • Direct cost assumptions include cost of stem cuttings, fertiliser, chemicals, labour costs, post-harvest management etc. • Assumes that the farm is mechanised and therefore requires expenditure in the installation of irrigation infrastruc- ture, purchase of tractors and other farm equipment. 45 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing B. Processing enterprises Small-scale operations The table below summarises the indicative performance of a small-scale processing enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 60,503,134 120,048,355 134,739,844 140,264,178 146,015,009 EBITDA 12,488,559 40,843,323 47,730,772 50,299,076 52,967,811 Net Profit 6,302,568 29,634,595 31,849,933 34,633,764 37,524,263 Ratios Gross Profit Margin 25% 37% 38% 38% 39% Net Profit Margin 10% 25% 24% 25% 26% Debt to EBITDA 183% 45% 28% 14% 1% Cash Flow Margin 19% 29% 27% 27% 27% Balance Sheet Total Non-Current Assets 21,879,180 19,088,733 16,665,607 14,557,715 12,721,539 Total Current Assets 9,811,117 37,794,865 66,844,305 97,639,816 130,231,792 Total Shareholder Funds 8,812,568 38,447,163 70,297,096 104,930,860 142,455,123 Total Current Liabilities 287,730 450,028 465,447 481,498 498,207 Total Non-Current Liabilities 22,590,000 17,986,407 12,747,369 6,785,173 (0) Cash Flow Items Cash Flow from Operations 11,547,261 34,313,425 36,232,796 37,975,216 39,767,881 Closing Cash Balance 8,582,091 35,623,118 64,583,517 95,286,335 127,781,819 Financing Requirements Working Capital 941,297 1,721,719 1,795,341 1,871,983 1,951,766 Capex 25,100,000 - - - - Source: Detailed Small Scale Cassava Processing Model Summary key drivers • Assumes processing capacity is 0.5 tonstonstons per hour, based on equipment provided by I2T, as well as other global equipment providers. • Equipment utilisation is capped at 85% in the base case scenario. • Assumes the following selling prices in Year 1, thereafter increases in line with inflation: - HQCF: XOF 330 per kg - Cassava Fibre (by product): XOF 130 per kg. • Direct cost assumptions include cost of cassava, packaging, power, electricity, transport, labour costs, etc. • Assumes that the enterprise requires equipment intended for small-scale production of cassava flour, thus minimal capital expenditure requirements. Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 46 Medium-scale operations The table below summarises the indicative performance of a medium scale/industrial processing enterprise: Summary Financials Year 1 Year 2 Year 3 Year 4 Year 5 Figures in XOF, except as indicated Estimates as at June 2022 Income Statement Revenue 437,554,985 868,182,400 974,430,355 1,014,382,000 1,055,971,662 EBITDA 48,569,869 288,137,383 342,933,691 359,734,572 377,069,061 Net Profit (86,584,468) 168,832,572 246,695,019 204,643,177 236,387,105 Ratios Gross Profit Margin 29% 42% 44% 44% 44% Net Profit Margin -20% 19% 25% 20% 22% Debt to EBITDA 1122% 136% 83% 44% 4% Cash Flow Margin 2% 29% 35% 27% 27% Balance Sheet Total Non-Current Assets 459,583,350 400,659,744 349,476,295 304,969,879 266,234,805 Total Current Assets 51,350,645 127,051,418 315,400,248 439,845,891 572,992,979 Total Shareholder Funds (33,834,468) 134,998,105 381,693,124 586,336,301 822,723,406 Total Current Liabilities 70,018,463 14,711,876 15,285,535 15,882,714 16,504,378 Total Non-Current Liabilities 474,750,000 378,001,182 267,897,884 142,596,755 (0) Cash Flow Items Cash Flow from Operations 6,947,001 253,670,749 337,462,218 273,406,394 281,948,943 Closing Cash Balance (60,290,685) 36,250,041 220,876,015 341,446,165 470,558,864 Financing Requirements Working Capital 41,622,867 76,089,501 79,238,698 82,517,012 85,929,737 Capex 527,500,000 - - - - Source: Detailed Medium Scale Cassava Processing Model Summary key drivers • Assumes processing capacity is 1.5 tons per hour, based on equipment provided by I2T, as well as other global equipment providers. • Equipment utilisation is capped at 85% in the base case scenario. • Assumes the following selling prices in Year 1, thereafter increases in line with inflation: - HQCF: XOF 350 per kg - Cassava Fibre (by product): XOF 150 per kg. • Direct cost assumptions include cost of cassava, packaging, power, electricity, transport, labour costs, etc. • Assumes that the enterprise requires equipment intended for medium scale production of cassava flour, thus significant capital expenditure requirements. 47 Farming and Processing in the Staple Food Sector in Cote d’Ivoire - Potential for Financing References Maize • ANADER (2017). Economic and Technical Note on Cassava farming. • CNRA (National Agronomic Research Center) (2020). Compendium of Technologies in Côte d’Ivoire, a study funded by CORAF/IFDC. • CNRA (2005). Good OPV seeds production in Côte d’ Ivoire. • FIRCA. (2021). Strategic plan for the development of the maize sector maize (2021-2026). Agricultural Inter-professional organization of the maize value chain and Firca, May 2021. • Heaven Agro Consulting (2019 a). Business plan- Mechanized and irrigated production of cereals (Maize, rice seed) and soja. • Ministry of Agriculture and Rural Development (MINADER) 2017. Regional identification of farmer organizations, and GIS location of communities of maize farmers. MINADER & WAEMU, 2017 report. • Rongead (2014). Diagnosis of the maize sector in Côte d’Ivoire”. Plantain • CNRA (National Agronomic Research Center). (2005). Good plantain farming in Côte d’Ivoire. • CNRA (2015a). Produce the vivo plants for reliable plantain production. • CNRA (2015b). Improve your income by intercropping vegetables in your plantain farming. • RONGEAD (2015). The plantain sector in Côte d’Ivoire. “Promotion and marketing of plantain and cassava in Côte d’Ivoire” a project financed by the French Committee French for International Solidarity (CFSI). Cassava • ANADER (2022). Economic and Technical Analysis of Cassava farming. • National Agronomic Research Center, CNRA (2013). Good cassava farming in Côte d’ Ivoire. • University F. H.B and CIRAD (2017). Analysis of cassava value chain in Côte d’Ivoire. • IITA (2014). Assessing Cassava Value Chains in West Africa. • MINADER. 2016. Agricultural Value chains in Côte d’Ivoire, Root and Tubers. • RONGEAD. (2015). Cassava value chain in Côte d’Ivoire. • FIRCA. (2020). Note on the integrated system and implementation methodology for the establishment and management of management committees in the framework of PRO2M. • FAO 2021. Methodological Guide for the design of an Agro industrial pole in the South -East region of Côte d’Ivoire. All crops • BNETD (2022)- Optimal Taxation of the agricultural value chain: Yam, Cassava, Plantain, Shea nuts and Cola. • Deloitte (2019a). Analysis of key barriers to women-led cooperatives in food crops sector. • Deloitte (2019b). Deep Dive Market Study of cassava, maize and plantain. • MINAGRI/DPAS (2014). National Strategy National for the Development of Food Crops other than rice (SNDV). Opportunities for Financing - Farming & Processing in the Staple Food Sector in Cote d’Ivoire 48 Contacts IFC Cote d’Ivoire Office Margarete O. Biallas Sekongo Kolognin Sonja Astfalck Rue Washington Agri-Finance Practice Lead Operations Officer Project Lead Abidjan, Côte d’Ivoire mbiallas@ifc.org ksekongo@ifc.org sastfalck@ifc.org IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org Copyright © IFC. 2023. All rights reserved. July 2023 IN PARTNERSHIP WITH: