In a strategic and forward-looking move to enhance its cocoa processing capabilities, Ivory Coast is actively considering the sale of an additional stake in its Transcao processing facility to the Malaysian cocoa company Guan Chong Berhad (GCB). This initiative, revealed by the country’s cocoa industry regulator, is primarily aimed at attracting further expertise and investment into the growing sector, which is critical to the nation’s economy.
Guan Chong Berhad recently announced that its subsidiary based in Singapore has successfully reached an agreement to acquire a 25% stake in Transcao from Ivory Coast’s Coffee and Cocoa Council (CCC). The director of the CCC expressed the nation’s desire to deepen its engagement with the burgeoning Asian market, indicating that the GCB subsidiary may be open to increasing its investment stake, contingent on obtaining the necessary approval from the Ivorian government.
Yves Brahima Kone, the CCC Director, emphasized, “We aim to master all aspects of cocoa processing, and GCB will be pivotal in helping us achieve this goal.” His statement highlights the strategic importance of this partnership in ensuring that Ivory Coast can enhance its processing capabilities and capture more value from its cocoa production. Kone further explained that the agreement with GCB is a key component of a broader strategy to secure a foothold in the Asian market, which is experiencing significant growth in demand for cocoa products.
As the world’s largest producer of cocoa, Ivory Coast predominantly exports cocoa beans. However, the establishment and development of Transcao are integral to the country’s ambition to transform into a significant player in the cocoa processing industry. Currently, Transcao operates a processing plant with a capacity of 50,000 metric tons. Plans are in place to launch a second facility by the end of 2024, with the aim of increasing the total processing capacity to an impressive 190,000 tons by the end of 2025.
To promote local processing and make it more attractive to investors, the Ivorian government has implemented a series of aggressive policies in recent years. These initiatives include offering tax reductions and other incentives for domestic companies looking to invest in cocoa processing. Kone highlighted the potential benefits that the partnership with GCB will bring, particularly in terms of facilitating valuable technical training. He stated, “We will ensure that Ivorians are actively involved in the commercial, sales, and technical teams to learn and master GCB’s expertise,” reinforcing the commitment to building local capacity and knowledge.
Currently, Ivory Coast boasts over 800,000 tons of processing capacity, with aspirations to reach an impressive 1 million tons within the next two years as new facilities become operational. This strategic move underscores the nation’s commitment to developing its cocoa processing sector, thereby enhancing its position in the global market and ensuring that more value is retained within the country’s economy. The focus on expanding processing capabilities aligns with broader efforts to elevate the country’s standing in the cocoa industry, ensuring sustainable growth and economic stability for years to come.
