Photo by UNDP Côte d'Ivoire

Local Rice Production

Photo by UNDP Côte d'Ivoire

Local Rice 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).
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.
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.
USD 100 million - USD 1 billion
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) No Poverty (SDG 1)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Life on Land (SDG 15)

Business Model Description

Focused on the northern regions and the lowlands, establish agreements with rice producers that include providing production resources (such as inputs, machinery, and finance) in exchange for a contractually agreed supply of rice for marketing. A tripartite agreement can also be made between producers and suppliers of fertilizers and pesticides.

Expected Impact

Reduce import reliance and enhance food security by stabilizing prices, ensuring consistent yields, and supporting resilient local economies.

How is this information gathered?

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

Disclaimer

UNDP, the Private Finance for the SDGs, and their affiliates (collectively “UNDP”) do not seek or solicit investment for programmes, projects, or opportunities described on this site (collectively “Programmes”) or any other Programmes, and nothing on this page should constitute a solicitation for investment. The actors listed on this site are not partners of UNDP, and their inclusion should not be construed as an endorsement or recommendation by UNDP for any relationship or investment.

The descriptions on this page are provided for informational purposes only. Only companies and enterprises that appear under the case study tab have been validated and vetted through UNDP programmes such as the Growth Stage Impact Ventures (GSIV), Business Call to Action (BCtA), or through other UN agencies. Even then, under no circumstances should their appearance on this website be construed as an endorsement for any relationship or investment. UNDP assumes no liability for investment losses directly or indirectly resulting from recommendations made, implied, or inferred by its research. Likewise, UNDP assumes no claim to investment gains directly or indirectly resulting from trading profits, investment management, or advisory fees obtained by following investment recommendations made, implied, or inferred by its research.

Investment involves risk, and all investments should be made with the supervision of a professional investment manager or advisor. The materials on the website are not an offer to sell or a solicitation of an offer to buy any investment, security, or commodity, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.

Read More

Country & Regions

Explore the country and target locations of the investment opportunity.
Region
  • Côte d'Ivoire: Sassandra-Marahoué
  • Côte d'Ivoire: Vallée du Bandama
  • Côte d'Ivoire: Bas-Sassandra
  • Côte d'Ivoire: Comoé
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. Local consumers are also reluctant to buy Ivorian rice, which they consider to be of inferior quality (1).

Industry

Agricultural Products

Pipeline Opportunity

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

Local Rice Production

Business Model

Focused on the northern regions and the lowlands, establish agreements with rice producers that include providing production resources (such as inputs, machinery, and finance) in exchange for a contractually agreed supply of rice for marketing. A tripartite agreement can also be made between producers and suppliers of fertilizers and pesticides.

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

Although Côte d'Ivoire is aiming at becoming self-sufficient in rice production, it imports over a million tons of rice a year, accounting for about USD 487 million import value, making it the fifth largest rice importer in the world and the second in Africa, behind Nigeria (28, 39).

There are 800,000 rice producers in Côte d'Ivoire and 1.3 million tons of rice produced annually, with 7% consumption increases annually (34).

Indicative Return

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

10% - 15%

Rice cultivation in lowlands could generate an IRR of around 13% for a large investment of USD 114 million across the rice value chain, based on the benchmark studies in the Economic Community of West African States (ECOWAS) countries in the Western African region (54, 55, 56).

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)

Investments in rice production may generate positive return in less than five years, especially if they enhance farmer's technical and financial capabilities - to process, acquire inputs, fertilizers, and pesticides (24).

Ticket Size

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

> USD 10 million

Market Risks & Scale Obstacles

Capital - Limited Investor Interest

Rice production remains predominantly familial, limiting access to finance and exposure to investors. Microfinance institutions offer loans with interest between 22 and 24%, which represent a substantial cost (50).

Market - Volatile

70% of production depends on rain (“pluvial”) without proper infrastructure to retain water (“eau maîtrisée”). Locust infestation further exacerbates price volatility (24).

Market - High Level of Competition

While Côte d'Ivoire has 800,000 rice producers, competition comes mainly from international groups as local quality control and branding is considered less attractive by national consumers (24, 34).

Impact Case

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

Sustainable Development Need

Côte d'Ivoire remains dependent on rice imports, with annual consumption of 2.5 million tons and production of 1.3 million tons, along with a rise in rice consumption of 7% a year, exacerbating food insecurity risks (12, 33, 34, 49).

Cereal yields in West Africa are four times lower than in South-East Asia, Europe or Latin America, and 50% lower than in East Africa, negatively impacting food security and food sovereignty (19).

80% of the paddy rice produced is transformed locally, in villages and small mills, with a low processing quality. As a result, domestic rice is considered inferior by consumers, leading to undersupply of local rice and losses in terms of value-addition (20).

Traditional rice production practices, especially slash-and-burn, emit large quantities of CO2-emitting, with the sector releasing three million tons of CO2 annually (51).

Gender & Marginalisation

Women are largely excluded from rice production, their role being limited to sorting, drying, and selling rice (24)

Local rice farmers in Côte d'Ivoire face economic challenges, with annual incomes averaging just USD 379 per producer in 2020. This low income is exacerbated by limited productivity, reliance on labour-intensive farming methods, and insufficient access to modern equipment and quality inputs like seeds and fertilizers (51).

Expected Development Outcome

Increased rice production reduces dependence on imports and help curb under-nourishment, notably in the rural rice-producing regions (51).

Contract farming encourages the adoption of enhanced production techniques, with reduced dependency on rainfall, thereby boosting yields and strengthening the competitiveness of local production (52).

The conclusion of contracts involving the supply of agricultural tools and machinery, and other inputs, helps improve processing productivity and quality, thereby boosting Ivorian consumers' trust in locally-produced rice, leading to greater self-sufficiency in rice and a higher level of local value addition (24).

Tripartite contracts would allow the use of additional machinery and the promotion of higher-yield, more sustainable production practices. This would reduce emissions from the rice sector in Côte d'Ivoire (51).

Gender & Marginalisation

Involving women's cooperatives could boost employment and income for women, while additional production would help reduce malnutrition burdens affecting women and children, who are particularly vulnerable (53).

Primary SDGs addressed

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)

2.3.2 Average income of small-scale food producers, by sex and indigenous status

Current Value

13.6% of children below 5 were undernourished in Côte d'Ivoire in 2021 (26).

In 2020, 10.8% of the rural population experienced food insecurity. The country remains dependent on rice imports to meet consumption needs, with an annual deficit of 1.2 million tons (17).

In 2020, the average income of small-scale Ivorian rice producers was USD 379 (51).

Target Value

The long-term objective for this indicator is 0% (27).

The government aims to achieve rice self-sufficiency by 2027 (35).

Under the government’s goal of achieving rice self-sufficiency by 2030, the average revenue per producer is expected to increase to USD 839 (51).

No Poverty (SDG 1)
1 - No Poverty

1.1.1 Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

Current Value

9.1% of the population had a poverty headcount ratio at $2.15 a day (2017 PPP) in 2021 (59).

Target Value

The government of Côte d'Ivoire aims to eradicate extreme poverty (population living below the international poverty line) by 2030 (17).

Secondary SDGs addressed

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

Directly impacted stakeholders

People

Local rice farmers, especially in the northern regions of Côte d'Ivoire (e.g., Boundiali and Korhogo) benefit from additional investment and the provision of equipment and inputs.

Gender inequality and/or marginalization

Rural population and ethnic minorities from northern regions benefit from an increase in rice supply, reducing food insecurity. They also enjoy additional work opportunities.

Planet

Nature and animals benefit as contract farming encourages efficient use of resources (like water, seeds, and fertilizers), as inputs are often provided based on planned production needs, reducing waste.

Corporates

Agribusiness firms benefit from further investments to develop sustainable supply chains. Local processing companies can achieve higher efficiency and quality in rice production.

Public sector

The government benefits from reduced rice imports, which represent a financial burden, and enjoy additional economic activity.

Indirectly impacted stakeholders

People

The population benefit from enhanced food safety through domestic supply of rice, additional revenues and jobs in rice-producing regions, stimulating local growth and welfare.

Gender inequality and/or marginalization

Women benefit from targeted projects such as that of the Louis Dreyfus Company, which aims to empower women through access to markets and decision-making roles.

Planet

Many contract agreements include environmental and sustainability standards, such as reduced pesticide use or the adoption of organic fertilizers, which benefit the soil and water ecosystems.

Corporates

Suppliers of farming equipment, fertilizers, and services experience increased demand as agricultural productivity and sustainability practices grow.

Public sector

Increased rice production aligns with government priorities regarding production targets outlined in the National Development Plan (12, 17).

Outcome Risks

Without proper oversight, rice production may lead to further environmental degradation caused by the over-use of pesticides and chemical fertilizers.

Inefficient water usage or poor management of irrigation systems could lead to environmental degradation, such as soil erosion or depletion of local water resources.

Rice production leads to emissions of methane and nitrous oxide, notably in relation to the flooding of paddies, which have a greenhouse effect (43).

Rice production can lead to competition over resources (water, land) with other crops and with inhabitants. Irrigation needs may increase competition over water basins (44).

Gender inequality and/or marginalization risk: Farmers may become overly dependent on agribusinesses, leading to exploitative practices. Contract terms may limit farmers' bargaining power.

Impact Risks

If mitigation measures are not adopted, farmers may experience economic hardships in relation with price volatility and yield changes caused by climatic events (19).

Rising input costs, particularly for fertilizers, pesticides and agricultural equipment, may make it more difficult to supply inputs.

Impact Classification

C—Contribute to Solutions

What

Investments in contract farming in rice production typically lead to increased yields, reduced environmental impact, and improved livelihoods for farmers.

Who

The primary beneficiaries are the local rice farmers, often among the most underserved in the agricultural sector, particularly smallholders and women who may lack access to resources.

Risk

Without public support, farmers could face economic difficulties due to climate-induced price volatility, yield changes, and rising input costs.

Contribution

Local rice production is complementary to other types of staples such as maize, millet, cassava and sorghum. However, due to the high consumer demand and import dependency, increasing rice production is crucial for the country to achieve self-suffieciny.

How Much

The national strategy for 2024-2030 aims to produce 4.16 million tons of paddy by 2027, meeting 97% of national demand. By 2030, the target is to produce 3.2 million tons of milled rice, covering 105% of the country’s needs (58).

Impact Thesis

Reduce import reliance and enhance food security by stabilizing prices, ensuring consistent yields, and supporting resilient local economies.

Enabling Environment

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

Policy Environment

The National Rice Development Strategy (2020–2030) (Stratégie nationale de développement du riz (2020-2030)) aims to promote integrated rice-growing projects, including irrigated rice cultivation, the production of high-yield seeds, mechanization, and the rehabilitation of 64 dams and rice fields on 55,000 hectares (29, 39).

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 also aims to enhance productivity, secure food supply, and boost farmer earnings, emphasizing rice production and processing as key for food security (8).

The Pact for Food and Agriculture (Pacte pour l'Alimentation et l'Agriculture) aims to close the gap between food needs and production. It includes the development of targeted agricultural value chains for rice, along with cassava, yams, maize and market garden produce, including processing stages (16).

The National Development Plan (2021-2025) aims to increase milled rice production from 50% to 90% over the period 2021-2025 and to reduce post-harvest losses from around 20% to 5% by 2025 (12, 39).

Financial Environment

Financial incentives: In April 2024, the government announced an agreement with the Israeli group Ekobell for an investment of USD 165 million (FCFA 100 billion) to support an integrated rice-growing project. Over 12 years, this agreement provides for the development of 6,200 hectares in the Haut Sassandra region, with the aim of intensifying rice production and boosting the country's agricultural sector (41, 42).

Fiscal incentives: In 2023, the government announced a VAT exemption on basic food items, including rice (excluding luxury rice), to mitigate inflation's impact and support purchasing power, favouring local rice producers. In addition, small to medium-scale rice production are exempted from taxes (24, 57).

Other incentives: The government subsidizes or funds the construction of rice transformation units in the country. 30 units with a capacity of 25,000 tons annually are expected, 19 of which are operational, complemented by 2t/h units (4,200 tons of capacity) (24, 40).

Other incentives: Projects such as the "Programme d’appui au développement des filières agricoles (IFAD)" provide funds to small rice producers to store and transform their rice and form partnerships (32).

Other incentives: In 2024, the World Bank announced a funding commitment of at least 150 billion CFA francs (USD 25 million) to support Côte d'Ivoire's National Rice Development Strategy 2024-2030, aiming to produce 4.16 million tons of paddy by 2027, covering 97% of the country's needs (29).

Other incentives: In 2024, the government implemented the Emergency Food Production Program (2PAU-CI) to reduce food imports, especially rice. Mid-2024, the program had distributed 1,812 tons of rice seed and 16,844 tons of urea, benefiting 67,464 farmers (36).

Regulatory Environment

A ministerial decision dated January 15th, 2024 suspends the export of essential crops for six months to tackle food insecurity. These include rice and cassava (37, 49).

Decree No. 2022-168 of March 9, 2022 instituted prior authorization for the export of all food products, impacting rice production by creating an additional regulatory step for exporting rice, potentially limiting exports to prioritize local food security (38).

Decree No. 2018-10 creates the Agency for the Development of the Rice Sector (Agence pour le Développement de la filière Riz (ADERIZ)). This agency's role is to implement government policies to achieve rice self-sufficiency by coordinating production, promoting local rice, supporting infrastructure and mechanization, and ensuring a sustainable supply of certified seeds to strengthen food security (46).

Decree No. 2023-771 modifies Decree No. 92-14, which created the Office for the Commercialization of Staple Products (Office de l'aide à la Commercialisation des Produits Vivriers), including rice. The decree specifies the attributions of the office, which include promoting infrastructure and logistics to support the marketing of staple foods, ensuring their availability and quality, and assisting vendors to expand the trade of these products in Côte d'Ivoire (47).

Marketplace Participants

Discover examples of public and private stakeholders active in this investment opportunity that were identified through secondary research and consultations.

Private Sector

KATIO-AKPA, Louis Dreyfus Company, CAPI Mini-Rice Mill, LOCAGRI, ESPOIR RIZ DU CAVALLY, Africa Rice Center (Centre du riz pour l'Afrique), Confédération Générale des Entreprises de Côte d’Ivoire (CGECI), Ekobell.

Government

Ministry of Agriculture, Agence pour le développement de la filière riz, Ministry of Water and Forests, National Rural Development Agency (ANADER), Centre de Promotion des Investissements en Côte d’Ivoire (CEPICI).

Multilaterals

United Nations Development Programme (UNDP), African Development Bank (AfDB), Food and Agriculture Organization (FAO), World Bank, International Fund for Agricultural Development (IFAD), Centre de coopération internationale en recherche agronomique pour le développement (CIRAD), International Fertilizer Development Center (IFDC).

Non-Profit

Louis Dreyfus Company Foundation, 2SCALE (incubator), The Hunger Project, Africa Rice Center [Centre du riz pour l'Afrique].

Public-Private Partnership

A PPP was concluded between the Ivorian government and the Israeli company Ekobell to produce rice in the Center-West region, with a funding of 152.4 million euros (USD 165 million). The project involves developing 6,200 hectares of rice fields and water management systems (41, 42).

Target Locations

See what country regions are most suitable for the investment opportunity. All references to Kosovo shall be understood to be in the context of the Security Council Resolution 1244 (1999)
country static map
semi-urban

Côte d'Ivoire: Sassandra-Marahoué

Sassandra-Marahoué is an important rice-producing district in Côte d'Ivoire. A 152 million euro (USD 164 million) agreement was concluded in 2024 to intensify rice production in the district, taking the form of a PPP between the government and Israeli group Ekobell (24, 42).
rural

Côte d'Ivoire: Vallée du Bandama

Vallée du Bandama is an important rice-producing district in Côte d'Ivoire. The district is currently hosting government initiatives to rehabilitate 1,000 hectares of rice plots (24, 30).
semi-urban

Côte d'Ivoire: Bas-Sassandra

The Bas-Sassandra district has a strong potential for rice production, with an ongoing project for the "integrated rural development of San Pedro plain". The presence of the San Pedro port also decreases transportation costs for export purposes and for the import of inputs (39).
semi-urban

Côte d'Ivoire: Comoé

The plains along the Comoé river (in Côte d'Ivoire and Burkina Faso) are suitable for rice production, with a productivity of 3.5 tons per hectare (45).

References

See what sources were used to establish the investment opportunity’s data and find resources that could be consulted to explore more.