Photo by UNDP Côte d'Ivoire

Biofertilizer Production

Photo by UNDP Côte d'Ivoire

Biofertilizer Production

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).
20% - 25% (in ROI)
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.
Short Term (0–5 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.
613,000 metric tons in 2021
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Life on Land (SDG 15) Good health and well-being (SDG 3)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8)

Business Model Description

Source biowaste from cocoa, cotton, cashew, coffee, seaweed, and other agricultural products to create biofertilizers, which are then sold to farmers and cooperatives. Agricultural companies and cooperatives can also produce biofertilizers by recycling their own biowaste, reducing input costs.

Expected Impact

Help boost agricultural productivity, improve farmers' health, lead to soil restoration and limit biodiversity loss from agriculture.

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.
Region
  • Côte d'Ivoire: Lacs
  • Côte d'Ivoire: Vallée du Bandama
  • Côte d'Ivoire: Sassandra-Marahoué
  • Côte d'Ivoire: Bas-Sassandra
  • Côte d'Ivoire: Lagunes
Learn more

Sector Classification

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

Food and Beverage

Development need
Agriculture and deforestation driven by agricultural expansion are the primary contributors to greenhouse gas emissions in Côte d'Ivoire. From 2010 to 2022, the intensive cultivation of cash crops (cocoa, rubber, palm oil, and coffee) on forested lands led to the degradation of 11% of the land, resulting in significant productivity losses (1, 11).

Policy priority
The National Agricultural Investment Program II seeks to elevate agriculture as Côte d'Ivoire's economic powerhouse, as Côte d'Ivoire remains dependent on imports to meet its nutritional needs. It targets 7.8% annual growth in agricultural production, supported by new agricultural clusters. In addition, the Pacte pour l'Alimentation et l'Agriculture aims to achieve national self-sufficiency in rice and fish by 2025, improve mechanization, reach 70% of private investment in the agricultural sector, and transform locally half of the crops (4, 8, 16).

Gender inequalities and marginalization issues
Agricultural production, including market gardening, cocoa, and rice, remains male-dominated, with access to land and credit for women remaining difficult. Women are underrepresented among farm owners, representing 10% of the total but accounting for almost 80% of food production. They are often employed as unpaid labor (2, 3, 5).

Investment opportunities introduction
Accounting for 28% of Côte d'Ivoire's GDP, the agricultural sector is one of the driving forces behind the economy. Côte d'Ivoire is the world's largest producer of cocoa and cashew nuts, 5th producer of palm oil, 7th producer of natural rubber and 4th producer of cotton. In addition, agriculture has forward linkages with the manufacture sector by providing inputs, including the agro-industry (e.g. chocolate) and textiles (cotton), thereby playing a key role for structural transformation (7).

Key bottlenecks introduction
Climatic hazards can have a major impact on food prices, as can logistical difficulties. The 2022/2023 season was affected by a rise in fertilizer prices due to the war in Ukraine. The amplitude of variations is set to increase with global warming (9, 17).

Sub Sector

Food and Agriculture

Development need
Climate change poses risks to labor productivity and forest cover, threatening agricultural sustainability, notably cocoa, which contributes 40% to export earnings. Additionally, the degree of transformation is low - over half of cocoa beans are exported unprocessed, while the country depends on imports of fish and rice to cover its consumption (1, 10, 13).

Policy priority
The government aims to increase local processing of key crops (100% of cocoa beans by 2030, 2 MT of rice per year). It supports sustainable production under the National Agricultural Investment Plan II (2017-2025), promoting climate-smart agriculture. In its NDCs, it targets a 30.4% reduction in greenhouse gas emissions between 2021 and 2030 compared to a reference scenario (12, 14, 15).

Gender inequalities and marginalization issues
There are significant spatial inequalities in Côte d'Ivoire, with agricultural districts such as Montagnes having extreme poverty rates largely superior compared to urban areas, such as San Pedro and Abidjan (17).

Investment opportunities introduction
Côte d'Ivoire is the world's leading cocoa and cashew producer, with 2.4 million tons of cocoa to be produced by 2022. However, climate change is likely to cause major disruptions, cocoa production is expected to drop by 30% in the early 2023/2024 season. Further investments in staple food production are needed to reach self-sufficiency (6).

Key bottlenecks introduction
Agriculture requires increasing investment as soils are degraded in many regions, undermining productivity and posing a major environmental problem. In addition, the country's taxation system applicable to agriculture is complex and can inhibit the entry of new players (1).

Industry

Agricultural Products

Pipeline Opportunity

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

Biofertilizer Production

Business Model

Source biowaste from cocoa, cotton, cashew, coffee, seaweed, and other agricultural products to create biofertilizers, which are then sold to farmers and cooperatives. Agricultural companies and cooperatives can also produce biofertilizers by recycling their own biowaste, reducing input costs.

Business Case

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

Market Size and Environment

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

613,000 metric tons in 2021

Côte d'Ivoire's imported more than 613,000 MT of fertilizers in 2021 while the five-year import average was above 472,000 MT. There is no production of inorganic fertilizers in the country. The production of local fertilizers is limited to organic fertilizers and covers only around 1% of the imports (56).

Indicative Return

ROI
Describes an expected return from the IOA investment over its lifetime.

20% - 25%

A biofertilizer processing investment in Benin, operating in the Economic Community of West African States region (ECOWAS), including Cote d’Ivoire, indicates a Return on Investment of 25%, with four years to pay back investment (37, 55).

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.

Short Term (0–5 years)

A biofertilizer processing investment in Benin, operating in the Economic Community of West African States region (ECOWAS), including Cote d’Ivoire, scaled up investment four years after it became operational (55).

Ticket Size

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

< USD 500,000

Market Risks & Scale Obstacles

Business - Supply Chain Constraints

Supply can prove challenging when production sites are located far from the agricultural areas generating the biowaste. Roadworks have been reported to slow down transit and lead to supply chain disruptions (45).

Market - High Level of Competition

The market for biofertilizers is nascent in West Africa, but some large groups such as Elephant Vert have already set up production facilities. Therefore, new actors may face competition from local SMEs and foreign multinationals alike (28, 30, 43).

Impact Case

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

Sustainable Development Need

Côte d'Ivoire produces only 0.1% of West Africa's fertilizers' total output, importing almost all its consumption. This exposes the country to supply shocks - endangering its agricultural production capacity, and leads to higher expenses (19).

The production of cocoa, vegetables, and cotton, all crucial to Côte d'Ivoire, relies heavily on pesticides and fertilizers. This intensive use has adverse effects on farmers' health, causing respiratory issues, skin disorders, and chronic conditions (22).

Soil degradation linked to the use of chemical leads to lower yields over the long-term, constituting a threat to food security and poverty eradication (22).

Côte d'Ivoire consumes an average of 50 kilograms of fertilizer per hectare against an average of 100 to 200 kilograms in western and Asian countries. This leads to lower food production, negatively impacting food security and export capacity (49).

Gender & Marginalisation

Women form 68% of the labor force in the cocoa production, and are responsible for 80% of the food production. They are critically exposed to chemical-related contamination (24, 25).

Expected Development Outcome

Biofertilizers can be produced locally, hence reducing the trade deficit while also being more affordable for farmers compared to conventional products (54).

Biofertilizers pose fewer health risks to farmers, especially those working closely with agricultural inputs on a daily basis over extended periods (57).

Biofertilizers offer a safer alternative to synthetic fertilizers, causing less soil deterioration by promoting nutrient availability and microbial activity. They reduce erosion, support long-term soil fertility, and maintain or even enhance crop yields (50).

Producing biofertilizers contributes to increasing the quantities of fertilizer used per hectare, contributing to higher yields, a reduction in food imports, and the fight against food insecurity (50).

Gender & Marginalisation

Increased supply of biofertilizers would diminish exposure to toxic chemicals, especially for women farmers, with expected positive outcomes including fewer cancer and intoxication cases.

Primary SDGs addressed

Zero Hunger (SDG 2)
2 - Zero Hunger

2.4.1 Proportion of agricultural area under productive and sustainable agriculture

Current Value

Only 15% of farmers use fertilizers, relying primarily on conventional products (58).

Target Value

N/A

Life on Land (SDG 15)
15 - Life on Land

15.3.1 Proportion of land that is degraded over total land area

Current Value

11.84% of the total land area was degraded in 2019 (59).

Target Value

Côte d'Ivoire has made commitments to the African Forest Landscape Restoration Initiative to restore 5 million hectares of deforested landscapes by 2030 (14).

Good health and well-being (SDG 3)
3 - Good Health and Well-Being

3.4.1 Mortality rate attributed to cardiovascular disease, cancer, diabetes or chronic respiratory disease

Current Value

The probability of dying from any of CVD, cancer, diabetes, CRD between age 30 and exact age 70 was 22% in 2019 (40).

Target Value

At the global level, the objective is to reduce by one third by 2030 the rate of premature mortality due to non-communicable diseases and promote mental health and well-being (24).

Secondary SDGs addressed

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

Directly impacted stakeholders

People

Farmers benefit from improved health outcomes (lower rates of respiratory, chronic, and skin diseases), higher yields resulting from lower soil degradation, and potentially cheaper fertilizers.

Gender inequality and/or marginalization

Women, largely over-represented in agricultural production, would largely benefit from the use of less toxic inputs.

Planet

Nature and animals benefit from biofertilizers, as they are a more sustainable alternative than conventional fertilizers, which are responsible for biodiversity loss and soil degradation.

Corporates

Firms benefit from the sale of biofertilizers, tapping from the extensive supply of inexpensive biowaste and the country's growing demand for fertilizers.

Public sector

The Government makes progress on its ambition to promote agroforestry and its international engagements against deforestation.

Indirectly impacted stakeholders

People

The population at large benefits from safer and healthier agricultural output, notably vegetables.

Planet

Nature and animals benefit from biofertilizers, which avoid negative consequences associated with conventional fertilizers, notably feedback loops in the nitrogen and phosphate cycles (air and soil) (23).

Corporates

Agricultural cooperatives and firms generate additional revenues from the sale of their biowaste, thereby also reducing waste treatment costs.

Outcome Risks

If biowaste is not stored properly, nor production of biofertilizers adequately supervised, biofertilizers can be contaminated with harmful pathogens such as heavy metals or other pollutants, leading to negative health outcomes for farmers and consumers. This is especially true if the source materials (e.g., fish waste or seaweed) are not properly treated (60).

While biofertilizers are generally more sustainable than chemical fertilizers, improper production processes or overuse could still lead to environmental harm, such as nutrient run-off into water bodies, leading to eutrophication (61).

If biofertilizer production disrupts the existing market for traditional fertilizers, retailers and farmers who rely on established suppliers and practices may face challenges adapting.

Gender inequality and/or marginalization risk: Women and marginalized individuals involved in the manual aspects of biofertilizer production might face exposure to biohazards.

Impact Risks

If the cost of chemical fertilizers falls, farmers may be less inclined to adopt biofertilizers. The social and environmental benefits of biofertilizers would therefore be impacted.

If the production of biofertilizers is insufficiently controlled, traditional fertilizers could be labelled as ‘organic’, which would constitute unfair competition and would complicate the identification of truly organic fertilizers.

Unregulated biofertilizer production and output quality could lead to inconsistent nutrient profiles, leading to either under-supply or oversupply of nutrients like nitrogen or phosphorus, thereby impacting agricultural production (62).

Gender inequality and/or marginalization risk: If biofertilizer production is commercialized or controlled by larger agricultural enterprises, small-scale women farmers and marginalized groups might struggle to access these products due to high costs or distribution limitations.

Impact Classification

C—Contribute to Solutions

What

The production of biofertilizers would encourage more sustainable and less toxic production and generate additional income for agricultural producers through the sale of bio-waste.

Who

Farmers producing cotton, fruits, vegetables, cocoa, and coffee would benefit from better health outcomes.

Risk

Falling chemical fertilizer costs and unregulated biofertilizer production could reduce adoption, create unfair competition, and lead to inconsistent nutrient supply, impacting agricultural productivity and the environment.

Contribution

Contribution: The production of biofertilizers from biomass complements other uses of biowaste. It adds to these alternatives by allowing to valorise types of biowaste which are otherwise not used, such as fish waste, while contributing to food security.

How Much

The Ivorian government, with support from the African Development Bank, aims to help at least 180,000 smallholder farmers access fertilizers to enhance their crop yields, through the African Fertilizer Financing Mechanism programs (63).

Impact Thesis

Help boost agricultural productivity, improve farmers' health, lead to soil restoration and limit biodiversity loss from agriculture.

Enabling Environment

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Policy Environment

The National Strategy for the Conservation and Sustainable Use of Biological Diversity in Côte d'Ivoire advocates for the scaling up of biofertilizer production as a sustainable agricultural practice aligned with environmental and food security goals (32).

The National Biodiversity Strategy and Action Plan 2016–2020 (Stratégie et plan d'action pour la diversité biologique nationale 2016-2020) designates chemical fertilizers as responsible for environmental disruptions and presents a roadmap for expanded biofertilizer adoption (34).

The National Agricultural Investment Program II (Programme National d'Investissement Agricole II or PNIA II) seeks to elevate agriculture as a key economic driver in Côte d'Ivoire with 9% of its GDP, targeting an overall growth in the primary sector of 9% a year. It promotes sustainable agriculture, and lists the development of organic fertilizers among its priorities, along with the expansion of agroforestry and stringer controls on conventional fertilizers (8).

The National Climate-Smart Agriculture Strategy for Côte d'Ivoire addresses broad food security issues in Côte d'Ivoire, including access to nutritious food, resilience to shocks, and sustainable agricultural production. It stresses the importance of biofertilizers for the development of climate-smart agriculture (41).

Financial Environment

Fiscal incentives: Under the Investment Code (2018), agriculture and agro-industrial firms, including biofertilizer producing plants, can benefit from incentives such as Corporate Income Tax exemptions, real estate tax exemptions, and employer contribution exemptions, depending on the zone in which they operate. In rural areas, exemptions can reach 100% over 10 years, following a 75% exemption over five years, on corporate income tax, property tax, employer contributions, etc. (46).

Other incentives: Various technical training on biofertilizer production and use are offered by public and private entities as well as NGOs (Conseil Café-Cacao, Yara, Sens Solidaire). These facilitate the adoption of biofertilizers (47, 20).

Other incentives: Competitions and funding programs from organizations such as the World Bank, the Louis Dreyfus Foundation, and other entities present valuable financing opportunities for SMEs. In 2019, the Louis Dreyfus contest offered 24 million CFA Francs in 2019 (USD 38,473) to the four winning entrepreneurs. The World Bank's Agriculture Sector Support Project also includes providing farmers with subsidized fertilizers, which can benefit biofertilizer producers (34, 35, 64).

Regulatory Environment

Loi d’Orientation Agricole (2015): lays out several measures promoting sustainable agriculture and biofertilizers, including the creation of local production units for organic and mineral fertilizers. It also offers incentives for "green investments," which include biofertilizers as part of sustainable agricultural inputs (33).

Regulation C/REG.13/12/12 of the Economic Community of West African States (ECOWAS) on the Quality Control of Fertilizers states that fertilizers can be sold or used in Côte d'Ivoire if they comply with an ISO standard, are covered by an Approval or a Temporary Import Authorization, or consist of raw organic products (42).

Marketplace Participants

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Private Sector

MBFi, Rizobacter, Novozymes, Elephant Vert, Confédération Générale des Entreprises de Côte d’Ivoire (CGECI), Lono, Icon, Green Countries, Biofertil.

Government

Ministère de l'Agriculture et du Développement Rural, Ministère Environnement, Développement Durable et Transition Ecologique, Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI).

Multilaterals

Economic Community of West African States (ECOWAS), West African Economic and Monetary Union (WAEMU), International Fertilizer Development Center (IFDC), Innovation Fund for Development, European Institute for Cooperation and Development, Food and Agriculture Organization (FAO).

Non-Profit

West African Fertilizer Association, Farm Foundation, United States Agency for International Development (USAID).

Target Locations

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country static map
semi-urban

Côte d'Ivoire: Lacs

The Lacs District is a major producer of fruit and vegetables, a crop that requires a lot of fertilizers (26).
rural

Côte d'Ivoire: Vallée du Bandama

Vallée du Bandama is a major producer of fruit and vegetables, crops requiring large amounts of fertilizers. The Kan River, located within the district, is highly polluted, notably due to fertilizers (26, 51).
semi-urban

Côte d'Ivoire: Sassandra-Marahoué

Sassandra-Marahoué is a large producing district of bananas, cassava, potatoes, avocados and vegetables, which are intensive in fertilizers. Chemical contamination of the Sassandra river in relation to fertilizer use is also a major issue in the district (27, 52).
semi-urban

Côte d'Ivoire: Bas-Sassandra

Seaweed and fish waste from aquaculture can be constituents of biofertilizers, and enhance plants' tolerance to salinity. Bas-Sassandra is ideally located to supply these inputs due to its extended coastline. Chemical contamination of the Sassandra river in relation to fertilizer use is also a major issue in the district (48, 52).
semi-urban

Côte d'Ivoire: Lagunes

Seaweed and fish waste from aquaculture can be constituents of biofertilizers, and enhance plants' tolerance to salinity. The Lagunes district is a crucial location, due to the presence of the Bandama and Komoé rivers along with its large coastline and abundance of lagoons. In addition, lagoons are fragile ecosystems particularly vulnerable to chemical pollution, with ongoing evidence of contamination from pesticides and fertilizers (48, 53).

References

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