Investor Presentaiton

JICA Cocoa processing Cocoa processing in Côte d'Ivoire: Executive Summary Overview of cocoa processing sector and key players Côte d'Ivoire is the largest producer and exporter of cocoa beans globally, with most of the production being processed abroad • • • 25% of cocoa production goes through first-level processing locally. The remainder is exported, with the key destination being The Netherlands (18%), the USA (9%), Belgium (8%) and Malaysia (7%) Cocoa processing in Côte d'Ivoire is dominated by a small number of global players including Barry Callebaut, Olam, Cargill and CEMOI which account for ~80% of current installed capacity Short to medium-term investment opportunities are in the first level processing given that there is limited opportunity in chocolate manufacturing as only 4% of the global consumption is in Africa Challenges in the market and actions taken by the Government Low local processing in Côte d'Ivoire is caused by high Investment and operational costs when compared to Europe and the US High costs is driven by the accumulation of high costs of labor, utilities, logistics, security, transportation, port logistics and taxes To offset these high processing costs, the government has provided a series of benefits to companies processing cocoa locally • The main incentive is the differentiated export tax (DUS) with lower tax rates for processed products (14.6% for cocoa beans vs 6.0% for cocoa liquor) Already established companies (including Japanese companies) stand to benefit the most from this initiative Some large processors like Barry Callebaut and Cargill have committed to increasing their processing capacities However, many investors are still reluctant due to short duration (3-5 years) of incentives . Expansion of the incentive period could provide reassurance to investors, and help the government achieve its target 76

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