agro processing

Agro-Processing Units

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Agro-Processing Units

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Decent Work and Economic Growth (SDG 8) Zero Hunger (SDG 2)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Reduced Inequalities (SDG 10)

Business Model Description

Invest in processing high value agricultural goods such as cotton, shea, cashew, baobab, rice, and mango sourced from smallholder farmers and cooperatives. Operators provide inputs like seeds, tools, and utilities to ensure steady supply, with potential for ECOCERT certification to increase value. Products include food, oils, textiles, and cosmetics branded “Made in Mali.” Powered by renewable energy, units sell domestically and export to West Africa, Asia, Europe, and North America. This model may qualify for support from GAFSP and the Subnational Climate Fund.

Expected Impact

Increase the market integration of smallholder farmers, reduce the reliance on imports, and improve local value chains and food security.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Mali: Sikasso
  • Mali: Koulikoro
  • Mali: Kayes
  • Mali: Ségou
  • Mali: Mopti
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
In 2024, 13.2 million Malians experienced insufficient food consumption, with 1.4 million facing severe food insecurity. By 2025, 2.9 million people, including refugees and internally displaced persons, will require food security assistance. Climate change and a population expected to double by 2045 will further strain food supplies (2, 8, 12).

Policy priority
Politique Nationale de la Sécurité Alimentaire et Nutritionnelle, 2019 targets: 1) sustainable food availability to meet national demand by 2030; 2) enhanced capacity to prevent, mitigate, and reduce climate risks; 3) improved food accessibility; and 4) better nutritional status for the population (14).

Gender inequalities and marginalization issues
The 2025 INFORM Index, a global risk assessment for humanitarian crises and disasters, ranks Mali as the 14th most vulnerable country to humanitarian crises and natural disasters. As of September 2024, 378,500 people were internally displaced—57% women and girls, and 66% children—mainly due to conflict and flooding. These pressures severely impact food security, underscoring the urgent need for agricultural investment to support vulnerable populations (8, 9, 10, 11).

Investment opportunities introduction
Mali's economy relies heavily on small-scale subsistence and family agriculture, which contributes 35.1% to GDP growth. Investing in climate-resilient technologies, modernization, and market integration offers high returns and development impact, boosting food availability, value-added products, and income (18).

Key bottlenecks introduction
Transportation costs, limited road networks, lack of cold storage, and security risks pose major barriers for investors, restricting supply chain development and weakening food system resilience (16).

Sub Sector

Food and Agriculture

Development need
Malian farmers face limited access to quality inputs and infrastructure, leading to just 4.5% of arable land being cultivated and agro-food processing contributing only 6.1% of GDP. Climate change is expected to reduce agricultural productivity by over 40% by 2040, threatening the livelihoods of 80% of Malians, or about 15.3 million people (3, 4, 5, 6, 7, 20).

Policy priority
Plan National d’Investissement dans le Secteur Agricole, 2015-2025 aims to position Mali as one of West Africa's top agricultural producers and an agro-industrial powerhouse, leveraging its agricultural raw materials. This will be achieved through modernizing production systems while preserving the environment and natural resources (15).

Gender inequalities and marginalization issues
In Mali, only 3.7% of women own agricultural land, compared to 44.8% of men, despite women making up 60% of the agricultural workforce and contributing to 80% of food production. On average, women own 0.6 hectares of land, 1.1 hectares less than men, limiting their capacity to generate income (1, 19).

Investment opportunities introduction
Mali has an annual deficit of over USD 648.4 million in agro-food, but it ranks among the top 4 cotton-producing countries in Africa, has the second largest livestock in West Africa, and produces more than 10 million tons of cereals. This offers the potential for the development of a sound agro-processing industry (35, 36, 37, 42).

Key bottlenecks introduction
High competition from imported goods and limited technology adoption by smallholder farmers may constrain the development and scaling up of local private sector-led initiatives in Mali's food and agriculture sector, slowing growth and innovation (17).

Industry

Processed Foods

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Agro-Processing Units

Business Model

Invest in processing high value agricultural goods such as cotton, shea, cashew, baobab, rice, and mango sourced from smallholder farmers and cooperatives. Operators provide inputs like seeds, tools, and utilities to ensure steady supply, with potential for ECOCERT certification to increase value. Products include food, oils, textiles, and cosmetics branded “Made in Mali.” Powered by renewable energy, units sell domestically and export to West Africa, Asia, Europe, and North America. This model may qualify for support from GAFSP and the Subnational Climate Fund.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

Market Size (USD)
Describes the value in USD of a potential addressable market of the IOA.

USD 100 million - USD 1 billion

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

97% of seed cotton remains unprocessed, Mali produces 1.3M liters of milk and 2.3M tons of surplus dry cereals.

Mali ranks among the top 4 cotton-producing countries in Africa, with 690,000 tons produced during the 2023/2024 season. The country also has the second largest livestock in West Africa, with an estimated production of 1.3 million liters of milk in 2023. Finally, Mali has an excess in dry cereals, with a surplus evaluated at 2.3 million for the 2020/2021 season (31, 36, 37, 42).

Mali transforms only 3% of the seed cotton produced locally and agro processing represents only 3.5% of the GDP. The country therefore imports more than USD 648.4 million on average in agro-food annually to cover its production deficit (31, 35).

Indicative Return

IRR
Describes an expected annual rate of growth of the IOA investment.

10% - 15%

The financial analysis of a benchmark project on special agro-industrial processing zones in Koulikoro and semi-urban Bamako, Mali, indicates an IRR of 25.21%. A conservative range of 10% - 15% for the IRR should be appropriate for individual agro-processing companies in the ecosystem (22).

A study by Food and Agriculture Organization for the 2023 Hand in Hand Investment Forum indicates an IRR of 25.6% for 12 medium-size tomato processing units in Koulikoro agropole, valued at USD 6.5 million (30).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Medium Term (5–10 years)

Consultations with cash crop processing operators in Mali, in January 2025, indicate that an initial investment of USD 8 million generate positive returns within 5 years. Based on the various operation costs of processing factories, a conservative range of 5-10 years should be appropriate (24).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Capital - CapEx Intensive

Investment in agroprocessing units require a minimum of USD 2 million in Mali , and can reach up to USD 11 million for large-scale factories (22, 24, 45).

Market - High Level of Competition

Locally produced goods are exposed to high levels of competition from imported goods, despite periodic restriction measures applied to the latter (24).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

Less than 3% of agricultural products were processed in 2020, and the value added by food processing industries fell from 6.7% in 2018 to 5.7% in 2019. This supply deficit results in average annual agrifood imports exceeding USD 648.8 million (20, 35).

Despite producing 1.3 million liters of milk, local dairy companies rely on imported powdered milk for production. This limits market integration for livestock breeders, who depend on informal sales or operate through minimally equipped, non-modern mini dairies (37).

Calf mortality reaches 17% in the first year and 5% during the perinatal period, largely due to pneumonia, digestive diseases, and parasites. In Gao and Tombouctou, risks are compounded by feed shortages and feed price inflation of up to 28% between October and November 2024 (23, 52).

Gender & Marginalisation

In Mali, 72.2% of the poor are farmers, 87.8% of whom are independent. Limited access to diversified markets—especially in rural areas—restricts their ability to generate stable and sufficient income, leaving them vulnerable to the poverty trap (33).

46.49% of Mali's productive units were concentrated in Bamako in 2021, limiting the expansion potential in other regions (53).

The cost of nutritious food is only USD 1.84 per household per day in Mali, but 1 in 2 households (49% or 13 million people) cannot afford it. This cost is twice higher in conflict-afflicted and semi-arid Menaka, Kidal, and Mopti, where the road network is also limited (16).

Expected Development Outcome

The local processing of agricultural products increases the value added generated by the sector, improves the food systems' resilience by reducing the reliance on imports and the vulnerability to supply shocks, and improves food affordability in local markets.

The processing of raw milk improves the market integration of livestock breeders, increasing their revenue, nutrition, food security, and poverty status.

The local production of animal feed and feed complements ensures a constant access to high-quality inputs. This reduces the cost of access, and improves animal quality, productivity, health, and life expectancy.

Gender & Marginalisation

Partnerships between smallholder farmers or farmers' associations and agro processing companies diversify the source of revenue of the former, increasing their resilience to limited local demand and to income shocks.

The establishment of agro processing units in regions other than Bamako fosters the development of local economies, generating multiplier effects on innovation, poverty, income, employment, and inequality.

Primary SDGs addressed

Industry, Innovation and Infrastructure (SDG 9)
9 - Industry, Innovation and Infrastructure

9.2.1 Manufacturing value added as a proportion of GDP and per capita

9.2.2 Manufacturing employment as a proportion of total employment

Current Value

The average processing rate of agricultural products was less than 3% in 2020 (35).

10% in 2023; 10% among men and 11% among women (40).

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth

8.5.2 Unemployment rate, by sex, age and persons with disabilities

Current Value

5.4% in 2023; 4.2% among men, 7.1% among women, 14.4% among youth aged 15-24, 6.1% among youth aged 25-34, 2.3 among those aged 35-44, and 4% in rural areas (33).

Target Value

Matrix of Agenda 2063 results at the national level targets 1) a national unemployment rate lower than 6%, 2) a reduction of youth unemployment (aged 15-35) to less than 6%, 3) and a total elimination of unemployment in rural areas by 2063 (33).

Zero Hunger (SDG 2)
2 - Zero Hunger

2.1.1 Prevalence of undernourishment

2.1.2 Prevalence of moderate or severe food insecurity in the population, based on the Food Insecurity Experience Scale (FIES)

Current Value

9.6% in 2021; 5.8% in urban areas and 8.8% in rural areas (43).

19.9% in 2021; 14.4% in urban areas and 21.5% in rural areas (43).

Target Value

Plan National d’Investissement dans le Secteur Agricole, 2015-2025 targets nutritional security for all Malians by 2025 (15).

Plan National d’Investissement dans le Secteur Agricole, 2015-2025 targets food security for all Malians by 2025 (15).

Secondary SDGs addressed

No Poverty (SDG 1)
1 - No Poverty
Reduced Inequalities (SDG 10)
10 - Reduced Inequalities

Directly impacted stakeholders

People

Smallholder farmers and livestock breeders benefit from increased income streams and market access.

Gender inequality and/or marginalization

Women, youth, unemployed people, and communities located in regions other than Bamako benefit from employment opportunities with various skills in production, logistics, and commercialization.

Planet

Animals benefit from improved health and life expectancy due to the sustainable access to quality feed.

Corporates

Road transportation companies benefit from the increased demand for their services.

Public sector

The government benefits from more taxes and revenue on the export of agrifood products. It also benefits from reaching its food security targets indicated in Plan National d’Investissement dans le Secteur Agricole 2015-2025 (15).

Indirectly impacted stakeholders

People

In the medium- to long-term, consumers benefit from reduced prices and improved nutrition and food security. Smallholder farmers benefit from improved poverty status.

Gender inequality and/or marginalization

In the medium- to long-term, poor youth who tend to emigrate clandestinely due to financial reasons reduce their exposure to this deadly risk and benefit from downstream employment opportunities.

Planet

In the medium-term, decentralized agro processing units reduce greenhouse gas emissions from imports and from intranational road transportation.

Corporates

Companies providing processing equipment, technology and maintenance, and those downstream the agricultural value chain, such as bakeries, benefit from the expansion of their activities.

Outcome Risks

If not monitored adequately, operations of agro-industrial units may cause water pollution from liquid waste, soil fertility loss from chemical discharges, and solid waste pollution (22).

If not regulated adequately, the construction of agro processing units may lead to social tensions from land disputes and potential involuntary economic resettlement (22).

If the partnerships with smallholder farmers lead them to produce exclusively cash crops over subsistence crop, the pressure on food security could increase.

Impact Risks

If the in-kind support to smallholder farmers is not effectively distributed or utilized, they may struggle to meet production targets, limiting the efficiency of this business model.

Climatic variations could disrupt the agricultural production and yields, limiting the expected impacts on food security.

Insecurity in major regions with high cereal production such as Mopti, Gao, Ségou and Koulikoro could disrupt the supply chain by reducing the effective cultivated area (41).

Impact Classification

C—Contribute to Solutions

What

Local agro processing improves the market integration of smallholder farmers, reduces the reliance on imports, improves local value chains and food security.

Who

Smallholder farmers, livestock breeders, women, unemployed people, youth at risk of clandestine emigration, and solar PV, transportation and agro-based downstream companies are impacted.

Risk

Inadequate distribution and utilization of farming inputs, climatic variations, and insecurity could limit the expected impacts of this business model.

Contribution

Local agro processing units increase the domestic supply of quality agrifood products, which are otherwise imported.

How Much

Local agro processing companies could compensate the agrifood deficit, which stands at more than USD 648.8 million each year (31).

Impact Thesis

Increase the market integration of smallholder farmers, reduce the reliance on imports, and improve local value chains and food security.

Enabling Environment

Explore policy, regulatory and financial factors relevant for the investment opportunity.

Policy Environment

Plan d'Action de la Réfondation de l'État, 2022-2026: prioritizes the creation of processing units to organize production chains and develop well-connected, interdependent and internationally competitive value chains (44).

Cadre Stratégique pour la Relance Économique et le Développement Durable, 2019-2023: outlines the development of agropoles to stimulate economic growth and employment in sector of harvested products (shea butter, gum arabic, etc.), fruit and vegetables, animal products, and cereals (51).

Phase 2 of Programme de Développement de l’Irrigation dans le Bassin du Bani et à Sélingué: builds the foundation for a strong and competitive agro-industrial sector in Mali by developing over 34,000 hectares of irrigated farmland in the Maninkoura, Moyen Bani and Djenné zones, promoting the production of rice and vegetables (38, 39).

Politique Nationale de Sécurité Alimentaire et Nutritionnelle, 2019: outlines government's support to improve food availability from the livestock sector through a better exploitation of the dairy potential (14).

Politique Nationale de Développement de l'Élevage, 2004: outlines the priority investments to increase the livestock value added, including the improvement of local milk collection and preservation facilities (51).

Financial Environment

Financial incentives: Investisseurs & Partenaires and Zira Capital provide up to USD 324,585 in seed funding to small-scale agro-processing companies in Mali. ABC Fund provides up to USD 865,561 in working capital loans (47, 48).

Financial incentives: International Finance Corporation (IFC) and African Development Bank provide up to USD 16 million in senior secured loans for the expansion of agro processors in Mali. IFC financing is under the Global Agriculture and Food Security Program's Private Sector Window (25,28,32,46).

Fiscal incentives: Investment projects with a capital greater than USD 1.6 million benefit from tax exemptions during the first 8 years. Companies that source at least 60% of their raw materials locally are subject to a 25%-reduction on profit and income taxes for a further three (3) years (49).

Other incentives: Subnational Climate Fund and International Finance Corporation provide technical assistance to mid-size sustainable agrifood processing projects in Mali (32).

Regulatory Environment

Law No. 2012-016 on Investment Code, 2012: grants equal rights to foreign and local investors and offers tax incentives for investments (49).

Law No. 06-045/AN-RM on agricultural orientation, 2006: promotes the development of local production units for livestock and poultry feed (50).

Marketplace Participants

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Private Sector

Naturex, Sahel Industries, Toguna, Sukula, Zabban Holding, Comatex, Modern Mill of Mali M3, Aliment Bétail du Mali, Grands Moulins du Mali, Cediam, Mali Shi, Groupe Diakhate, Karit'Or, Investisseurs & Partenaires, Zira Capital, ABC Fund, Fonds de Garantie pour le Secteur Privé.

Government

Ministère de l'Industrie et du Commerce, Direction Nationale des Productions et Industries Animales.

Multilaterals

International Finance Corporation, African Development Bank, Subnational Climate Fund.

Non-Profit

Fédération nationale des producteurs de lait, Union nationale des coopératives de planteurs et maraîchers du Mali, Coordination nationale des organisations paysannes du Mali.

Target Locations

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country static map
semi-urban

Mali: Sikasso

Sikasso is the largest producer of fruits in Mali, with 465,382 tons of mangoes produced in 2022. Other key resources include cotton, shea, cashew, and over 5 million heads of livestock. 4.05 million liters of fresh milk were produced in 2022. Poverty stood at 60.1% in 2023 in the region (33, 34).
semi-urban

Mali: Koulikoro

Koulikoro had the highest poverty rate in 2023 at 64%. African Development Bank targets the region and peri-urban Bamako for the development of a special agro-industrial processing zone by 2027 (22, 33).
semi-urban

Mali: Kayes

Kayes is a region rich in baobab, shea, and arabic gum production. Its geography makes it ideal for dryland agro processing industries, supporting its 30.8% of poor inhabitants (33, 34).
semi-urban

Mali: Ségou

Segou hosts 250 ha of industrial area (zone AZI), with 52.8% of poor in 2023. The region offers potential for sugarcane and arabic gum processing. The government identifies post-harvest equipment for fonio and sesame as priority investments in the region (33, 34).
semi-urban

Mali: Mopti

With 39.4% of poor in 2023, Mopti hosts 40% of the national area cultivated with rice and over 1.5 million ha of arable land. The crop employs 35% of its labor force. Mopti also has 4.5 million ha of pastoral area, 22.1% of the cattle herd, and 26% of the sheep and goat herd (33, 34).

References

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