Ivory Coast To Expand Cocoa Processing with Asian Expertise

Ivory Coast is seeking to further increase its cocoa processing capabilities by leveraging Asian expertise. The country may sell an additional stake in its Transcao cocoa processing facility to Malaysian cocoa group Guan Chong Berhad (GCB), according to the nation’s cocoa industry regulator. This move aligns with Ivory Coast’s strategy to attract more investments and expertise in the sector.

On Wednesday, Guan Chong Berhad announced that its Singaporean subsidiary had secured a 25% stake in Transcao from the Ivory Coast’s Coffee and Cocoa Council (CCC). The head of Ivory Coast’s cocoa regulatory body expressed a strong desire to deepen its presence in the Asian market, suggesting that GCB’s stake could grow further, subject to government approval.

“We aim to go beyond our current capabilities and master all aspects of cocoa processing, and GCB will be instrumental in helping us reach this goal,” said Yves Brahima Kone, CCC Director. “Our partnership with GCB not only helps us expand into Asia but also enhances our technical knowledge and skills,” he added.

Despite being the world’s largest cocoa producer, Ivory Coast exports most of its cocoa in raw bean form. Transcao is a key part of the nation’s broader plan to transform itself into a leading cocoa-processing hub. Currently, Transcao operates one processing plant with a capacity of 50,000 metric tons, with plans to launch a second plant by the end of 2024, which will boost its total capacity to 190,000 tons by the end of 2025.

In recent years, the Ivorian government has implemented policies to make local cocoa processing more appealing, offering incentives like tax breaks to encourage investment. According to Kone, the collaboration with GCB will provide valuable technical expertise and training opportunities for Ivorian workers.

Overall, Ivory Coast currently boasts over 800,000 tons of cocoa processing capacity, with projections to reach 1 million tons within the next two years as new facilities become operational.