La Compagnie Cacaoyère du Bandama

Development impacts

• Local economic growth

  Net export effects - Strategic sector and export revenues: Export-oriented company (mainly towards EU market), supporting export revenues and trade balance improvements, in a sector that is crucial for IC economy (providing a living for about one-fifth of the population); Greater domestic value addition: CCB’s cocoa local processing contributes to keep substantial profits from cocoa in the country of origin, as the creation of value added and returns is essentially concentrated in the processing and distribution phases and marginal in primary processes of production and exportation of cocoa beans.

• Private sector consolidation/innovation

  Know-how and technology transfer
  - Enhanced processing: Thanks to BIO’s funding, CCB will be able to process and market an additional grinding derived product i.e. cocoa liquor, thereby further improving efficiency and returns of cocoa transformation
  - Industrial and managerial know-how transfer: Technical and on-the-job trainings is provided by CCB to (future) managers and employees – including on sustainability and certification topics - and CCB will hire dedicated sustainability staff

  Market structuring effects
  - Extent the IC processing capacity: CCB’s cocoa local transformation contributes to the development of the local cocoa processing industry, in line with the government objective to reach the 50% level of grinding cocoa locally by 2030.
  - Local cocoa processing company: As one of the few local champions in a market dominated by international companies, CCB increases competition in a closed and oligopolistic market
  - Upgrading the local cocoa value chain: CCB will contribute to local cocoa transformation into semi-finished products (for export) and to a more sustainable supply chain (i.e. CCB sustainability scheme)
  - Enhanced processing: CCB will be able to process and market an additional grinding derived product i.e. cocoa liquor, thereby further improving efficiency and returns of cocoa transformation "

• Food security & rural development

  Large volumes of cocoa sourced locally: CCB will indirectly provide economic opportunities to tens of thousands of cocoa producers and their family by sourcing large volumes of cocoa (up to 64,000 tons) through local cooperatives and purchasing offices – estimated to 50 suppliers and underlying 20,000 producers in 2020/2021. Doubling the processing capacity will further increase the number of suppliers and farmers reached.

  Capacity to source 'sustainable' cocoa: Depending on market demand, CCB will be capable to source important volumes of certified cocoa.

  Relationships with suppliers and capacity development of cooperatives: As part of its sustainability scheme, CCB is expected to work at formalizing relationships with suppliers and support capacity-building of a selected number of cooperatives with governance, sustainability practices and certification requirements (possibly in cooperation with Enabel).

  Economic opportunities in a small rural town: Current CCB activity and future expansion of the plant capacity in Tiassalé - an agricultural area with only few industrial activities - will provide direct economic opportunities to local workers as well as positive spillover effects on rural development i.e. supply chain effects.