Investor Presentaiton

JICA ☐ Agriculture in Côte d'Ivoire: Executive Summary Overview of the Agriculture Sector Agriculture is a major economic sector in Côte d'Ivoire with high production volume across key crops Côte d'Ivoire is the world's largest producer of cocoa (accounting for 40% of total world production) and raw cashew nuts It is the largest exporter of rubber, palm oil, bananas, pineapples and copra in Africa, and the second producer of Robusta coffee on the continent The country is self-sufficient in most major local crops (maize, sorghum, millet, yam, cassava, plantain), rice remaining the exception Given its size and momentum, the sector presents some opportunities for private investors Size and growth: Production grew by 50% between 2011 and 2017 (15.8M to 23.7M tons), 30 percentage points faster than in Sub-Saharan Africa Government: The government has unveiled an ambitious program to improve production and processing in which the private sector will play a key role Private sector: Several large international players including Japanese companies continue to invest in the sector (e.g., Barry Callebaut, Olam, Cargill and CEMOI have 80% of installed cocoa beans processing capacity) Access to markets: Thanks to its modern ports and established routes, Côte d'Ivoire offers access to a larger West African market Despite its importance, the sector still faces some challenges • • • Low land use: less than 60% of total agricultural land is cultivated Crop yields lag peers: 50-70% lower than global average across local and export crops Low local processing: less than 5% of export crops processed locally, which is up to ~50% potential loss in value realization High wastage: 2x of global average (8.2% vs 4.5%), driven by inadequate storage infrastructure, poor post-harvest processes and farm ecosystem Japanese companies' interest in the sector Several Japanese companies are active in the sector and the benefits they could gain from this study depends on their activity We have classified the Japanese players in three groups based on involvement in the sector and potential opportunities highlighted in this study: Rice farming and processing machinery: Opportunities to supply machinery to local dealers or processing players - Cocoa sourcing and processing companies: Consider cocoa processing to Côte d'Ivoire (based on cost implications) Established agri-processing players: Potential to increase processing in cocoa and cashew if the economics are right Japanese players consistently identified three key challenges Difficulties for local players to get financing: high interest rates from financial institutions (over 20%) prohibits purchases of agricultural machinery High processing costs: processing costs are higher in Côte d'Ivoire than other markets due to an accumulation of factors including higher logistics, management hires, security, machinery servicing/maintenance costs Need for improvement in government policies: duration of incentives, import control on rice, and governance of market competition can be improved 40

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