Back from mission: in Ivory Coast, our partners face declining cocoa production

Plants cacao 5 Cote d'Ivoire

Have you noticed the soaring price of your favorite chocolate lately? Rising prices present a number of challenges for our partners involved in the cocoa sector in Ivory Coast, a country which alone accounts for almost 40% of the world’s cocoa production. Junior Tombe, investment officer, has just returned from a mission to shed some light on the situation.

Since September 2023, I have been in charge of monitoring SIDI’s partners in several West African countries. This is how I discovered Côte d’Ivoire, one of SIDI‘s intervention countries. The changes taking place in the country’s agricultural sector make each mission exciting.

This time, my mission concerned the cocoa sector. We mainly work with certified cooperatives that buy dried and fermented beans directly from producers and then resell them to exporters, often subsidiaries of major chocolate multinationals.

Today, Ivory Coast accounts for between 35 and 40% of the world’s cocoa production (over 50% with Ghana). Any change in production therefore has a direct impact on the world market.

Cocoa futures trading vs soaring world prices

An interesting feature of the Ivory Coast cocoa market is that it is highly regulated. The State, through the Conseil Café Cacao (CCC), sets the price of cocoa at the start of each season: from October 1st to March 31 of the following year for the long harvest, and from April 1st to September 30 for the small harvest. A price scale defines the selling price at all levels of the marketing chain, from planter to exporter. The “bord champ” price is the one paid to growers by the cooperatives. In principle, no one is allowed to buy below or above this price, under penalty of sanctions.

This policy of price stabilization, adopted after the excesses of liberalization, guarantees a minimum price to producers and secures future sales via forward contracts, at prices negotiated six-twelve months before the campaign. However, the last season (2023/24) and the main part of the 2024/25 season were marked by a drop in production: down 25 to 30% in 2023-2024 and lower deliveries for the current season. Caused by climatic disruption – “droughts” alternate with excessive rainfall – the drop in production, coupled with stock market speculation, contributed to the historic surge in international cocoa prices (a tonne of cocoa rose from $4k to $12k between the end of 2023 and April 2024).

Given that the majority of Ivorian cocoa production is sold in advance at pre-negotiated prices, soaring prices have widened the gap between the farm-gate price paid to producers and the market price, ultimately putting a strain on the price stabilization policy. This poses new challenges for cooperatives.

Mature partners capable of anticipating production trends

During my mission, I was impressed by the maturity of our partner cooperatives in the face of these challenges. They have succeeded in delivering 80% of their contracts to buyers in the 2024/25 long harvest.

This demonstrates their level of local knowledge and the effectiveness of their producer loyalty strategies. Against a backdrop of falling cocoa production, which can intensify competition, the benefits our partners provide to their members are decisive in securing the stock: supply of inputs, school loans, training, donations of tools, and so on.

In addition to focusing on non-commercial services, our partners have anticipated the increase in their financing needs. This is how they obtained larger amounts of pre-financing from buyers, in addition to increasing the amounts of their loans negotiated with SIDI (+1.1 M€ of loans in 2024 compared to 2023).

Unlike buyer advances, which are repaid on delivery, and bank loans, which are often amortized monthly, SIDI loans offer flexible working capital, as they are repaid on the last deliveries.

The example of ECAM, an emblematic SIDI partner since 2017

Based in Méagui in southeastern Côte d’Ivoire, ECAM has over 3,000 members and a production capacity of around 7,000 t of cocoa.

During my visit to ECAM members’ plantations, I became aware of the cooperative’s resilience, as some plots have been affected by swollen shoot disease for several years. This disease, which is incurable to this day, destroys the branches and leaves of cocoa trees, leading to a drop in production for producers and, consequently, a fall in income. To counter this scourge, ECAM is promoting crop diversification by distributing vegetable seeds to supplement cocoa in infected areas. This is in addition to the activities of ECAM’s sustainability program: promotion of organic inputs to support productivity, distribution of shade trees, etc.

SCEB, a 100% organic cooperative that could become a new partner

This mission enabled me to meet a potential new partner for SIDI: SCEB, a 100% organic cooperative, quite different from what we see in Côte d’Ivoire.

For SIDI, it’s important to support a partner that chooses organic agriculture in a context where less than 10% of the members of partner cooperatives are organic, and where the European Union, the main buyer of Ivorian cocoa, is strengthening its legal measures to combat deforestation.

The cooperative’s positioning in this niche market, in a country where cocoa is almost exclusively grown conventionally, sets an example for other cooperatives.

All in all, it has been truly enriching for SIDI to support these partners in the cocoa sector in Côte d’Ivoire, who have shown a great capacity to adapt. I’m convinced that the Côte d’Ivoire experience can be a rich source of lessons for other countries and other sectors.

 

Interview by Anne-Isabelle Barthélémy

Image credits SIDI: cocoa plants, shade tree nursery, on the road, a cocoa tree affected by swollen shoot.

 

Resisting in times of conflict: the testimony of Hekima, a partner based in the Democratic Republic of Congo, at SIDI’s General Meeting

Like every year, the Annual General Meeting is an opportunity for SIDI to invite one of its partners to speak. This year, we were delighted to welcome Laurent Daddy Yamba, Director of the microfinance institution (MFI) Hekima partner of SIDI in the East of the Democratic Republic of Congo (DRC).

A partnership between Hekima and SIDI based on trust

The first contacts between Hekima and SIDI date back to 2013, and the partnership officially began in 2021. It is based on great trust. In terms of financing, SIDI and FEFISOL (European Solidarity Fund for Africa)financent Hekima up to1.5 million since 2021. At the same time At Hekima’s request, SIDI joined its Board of Directors, contributing to the debate on its strategic and controlled development: portfolio growth, digitalization, expansion in a high-risk area.

Hekima and the situation in Kivu

Laurent D. Yamba explained how Hekima continues to work in a difficult context: since January 2025, the offensive led by the M23, a rebel group active in Kivu supported by Rwandan soldiersaishas led to atrocities, displacement of populations, economic losses and widespread insecurity, all of which are undermining the MFI’s activities (see our article on the M23 takeover of Goma and the impact on our partners and the population). On June 27, a peace agreement was signed between the DRC and Rwanda, but the situation remains uncertain.

Founded in 2007, Hekima is an MFI headquartered in Goma and through three three other branches in Bukavu, Kalemie and Lubumbsahi. It had 8,119 active borrowers and a loan portfolio of $9.7 million at the end of the first quarter of 2025. The MFI mainly targets women entrepreneurs (78% of its clientele), notably through group loans (inspired by local tontines) mainly in urban areas, due to the risks associated with the informal agricultural sector.

Since January 2025, cash has been in short supply, so MFIs have become strategic structures, but also particularly exposed, endangering Hekima’s activities and team. Between violence against customers, looting of borrowers’ businesses the economic slowdown and logistical difficulties, Hekima, like all other MFIS in the region, has had to scale back its operations.

Laurent Daddy Yamba is currently in Kinshasa for security reasons. Exchanges with customers have become difficult, as have loan rescheduling. While some MFIs are still holding out, many mutualist structures “only hold out in name. They’re dead.

“Microfinance institutions are dying and need support – and they’ll need it even more tomorrow, when the crisis is over, because we’ll need to restart operations.”

Exchanges with customers have become difficult, as have loan rescheduling. While some MFIs are still holding out, many mutualist structures “only hold out in name. They’re dead.

Maintaining business despite conflict

Despite all this, Hekima continues to operate and serve its customers, constantly adapting. Fallback points are organized for fund-raising and distribution, sometimes in hotels. The team, though dispersed, continues to work from home, arranging appointments at the safest times. All remain hopeful and committed to their mission, despite the civil war.

This business continuity has strengthened customer confidence in Hekima. In Goma, from March to May 2025, the MFI was able to finance 476 loans for a total of $246,000, in the form of small loans of around $500, in a region where cash is scarce and crucial for access to healthcare or food. In these complex times, Laurent Daddy Yamba explains how Hekimato loans to as the impact is greater.

What solutions for tomorrow?

Laurent Daddy Yamba also lobbies international and national institutions and national institutions – IMF, World Bank, Central Bank of Congo – for the creation of a recovery fund for the post crisis. In fact, no MFI can cope with the upturn in activity on its own. . This stimulus fundwould three components: 0-rate loans, subsidy funds – either for equipment or for the portfolio – and the rapidly usable financial guarantees. For Laurent Daddy Yamba, such asuch a stimulus fund is essential to restart operations as soon as security conditions allow customers to return in large numbers.

A meaningful testimony

Invite Hekima and his Director Laurent Daddy Yamba to our Annual General Meeting is an honour for SIDI, and also a strong way of expressing our solidarity with our partnerthe Congolese people and microfinance players in Kivu. Today, the challenge is clear: to stand by Hekima and prepare for the post-conflict period.

Discover SIDI’s 2021 activity report

The 2021 Activity Report is online!

The year 2021 was still very much marked by the effects of the Covid19 pandemic, but let us salute everyone’s commitment, which enabled SIDI to pursue its mission as a solidarity investor serving the financial and economic inclusion of populations excluded from conventional financial systems.

Discover the performances and achievements of SIDI and its partner organizations, all committed to ecological and social transition. Aware of the significant financing and support needs that remain, SIDI is fully mobilized to respond to the ever-increasing challenges facing the most vulnerable populations.

Let’s stick to our course and our ambition to promote socially responsible finance!

 

 

 

 

View the webinar on partner support

[chapeau]You can watch or re-watch this new edition of Les Témoins en Actes webinar on support, the cornerstone of the solidarity investor’s mission.[/chapeau]

The webinar featured Abdou-Rasmané OUEDRAOGO, Managing Director of Union des Baoré Tradition d’Epargne et de Crédit (UBTEC). UBTEC is a microfinance institution that operates mainly in rural areas of northern Burkina Faso, in the Sahelian zone, while maintaining a strong peasant base thanks to the fact that it was founded by Burkina Faso’s main peasant federation.

SIDI’s General Manager, in dialogue with SIDI’s partnership manager, came to talk about the relationship forged with SIDI to support farmers in the Ecological and Social Transition. Support from the ACTES Foundation has made it possible to finance and support the agro-ecological practices of UBTEC members.

Webinar: Partner support

[chapeau]To strengthen its support for its partners, SIDI has created the ACTES Foundation under the aegis of the Terre Solidaire Foundation. In this new webinar, Les Témoins en Actes focuses on support, the cornerstone of the solidarity investor’s mission.[/chapeau]

To find out more about the tailor-made support provided by the ACTES Foundation to SIDI’s partners, we invite you to a new ” Témoins en ACTES ” event on Thursday March 31 from 5 to 6.30pm.

This time we welcome Abdou-Rasmané OUEDRAOGO, Managing Director of Union des Baoré Tradition d’Epargne et de Crédit (UBTEC).

UBTEC is a microfinance institution that operates mainly in rural areas of northern Burkina Faso, in the Sahelian zone, while maintaining a strong peasant base thanks to the fact that it was founded by Burkina Faso’s main peasant federation.

The Managing Director of SIDI will give us his account, in dialogue with SIDI’s partnership manager, of the relationship forged with SIDI to support farmers in the Ecological and Social Transition. Support from the ACTES Foundation has made it possible to finance and support the agro-ecological practices of UBTEC members.

1h30 of discussions to better understand the links between SIDI’s investment and support activities, and the challenges it faces in consolidating its support mission with its partners.

→ Register for the webinar here

The first edition of Les Témoins en Actes webinar welcomed Assata DOUMBIA, producer and president of the ECAM cooperative in Côte d’Ivoire. You can read his testimonial and watch the webinar again:

Focus on technical support for rural African players

Created in 2011 by SIDI and its partners, the Fefisol fund offers a technical assistance (TA) facility to African rural players, in addition to its financial support. After conducting nearly 140 TA projects on the continent, SIDI and Alterfin are due to launch a second fund in 2022, with the ambition of further deepening its social and environmental approach to the companies financed.

Financing and TA, fertile ground for the growth of agricultural entities in Africa

By Gabrielle Orliange, Head of Social and Environmental Performance SIDI/Fefisol (published in Secteur privé & développement #36, La revue de Proparco, 4th quarter 2021)

In Africa, microfinance and the rural sector are of little interest to the traditional banking system. However, technical support (TS) for agricultural entities, combined with appropriate financial services, play an essential role in the continent’s sustainable development. This is why the Fefisol fund (Fonds européen de financement solidaire pour l’AFrique), in addition to its financial support, offers a technical assistance facility to rural players. In this context, it provides its customers with specialized service providers who help them to strengthen their viability and improve their productivity, while preserving the living conditions of small-scale agricultural producers.

Since its creation just ten years ago, Fefisol has financed 139 support projects for 51 customers in 22 African countries. Over two-thirds of beneficiaries are small microfinance institutions (MFIs) undergoing consolidation[1] or agricultural entities. A quarter of the technical support projects supported by the fund relate to financial issues, in particular accounting monitoring and strengthening internal control.

The technical support program reinforces the impact of financial support. At the beneficiary level, the two levers of action are complementary: Fefisol loans enable companies to grow their business, while technical expertise helps them secure this growth by improving their efficiency. In terms of fund management, technical support in return enables investment managers to improve their understanding of how investee companies operate, thus guaranteeing greater operational efficiency.

Fefisol’s TA offer stands out above the rest by providing a tailor-made response to customer needs. The customer is heavily involved in the entire process, including the selection of the service provider. This sense of ownership is also reinforced by the direct financial contribution that each customer must make to the project[2].

INVOLVE THE CUSTOMER IN ALL PHASES OF THE PROCESS

Over the decade, the needs of Fefisol’s customers have changed considerably. For almost two years now, due to the economic crisis linked to the Covid-19 pandemic, requests to the fund have mainly been for equipment coverage not provided for in their annual budgets. For their part, MFIs have asked for support in managing liquidity in a crisis context. Fefisol has responded to this need by organizing, with partners, an online training course on this topic.

The independent evaluation of the facility in 2019 will assess the impact of technical support on beneficiaries. Many TA missions respond to opportunities and needs for fundamental change within beneficiary institutions. In many cases, TA projects have helped to kick-start an in-depth transformation process. By enabling customers to test innovations more quickly and easily, they help speed up the implementation of optimal solutions.

Several lessons can be drawn from these ten years of activity. The main one remains the need for the customer to take ownership of the technical support project. As such, his involvement in the process is crucial, from defining his needs for a customized solution to managing the consultant. It is also important to maintain a certain degree of agility throughout the implementation of TA projects, to ensure an effective response.

MEETING THE CHALLENGE OF PROJECT IMPACT ASSESSMENT

Downstream, the major challenge of this type of scheme remains that of evaluating the impact of TA programs on beneficiaries. Thanks to the possibility of granting successive financing and to its processes for monitoring the performance of its customers, Fefisol nevertheless has powerful tools for characterizing and documenting this impact over time.

To support this ramp-up, a Fefisol 2 fund will be launched in March 2022. Following on from Fefisol 1, it will continue to offer financial and technical services to rural MFIs and agricultural entities, with the ambition of deepening its social and environmental approach to projects. As such, the AT facility will have a compartment dedicated to improving sustainable agricultural practices and financing agriculture, while retaining its “tailor-made” approach so as to meet all its customers’ needs.

[1 ] Tier 3 MFIs, with total assets of less than USD 5 million.

[2 ] This mandatory contribution – at least 15% of each mission – explains the relatively low average value of TA projects.

 

Focus on technical support for rural African players

Created in 2011 by SIDI and its partners, the Fefisol fund offers a technical assistance (TA) facility to African rural players, in addition to its financial support. After conducting nearly 140 TA projects on the continent, SIDI and Alterfin are due to launch a second fund in 2022, with the ambition of further deepening its social and environmental approach to the companies financed.

Financing and TA, fertile ground for the growth of agricultural entities in Africa

By Gabrielle Orliange, Head of Social and Environmental Performance SIDI/Fefisol (published in Secteur privé & développement #36, La revue de Proparco, 4th quarter 2021)

In Africa, microfinance and the rural sector are of little interest to the traditional banking system. However, technical support (TS) for agricultural entities, combined with appropriate financial services, play an essential role in the continent’s sustainable development. This is why the Fefisol fund (Fonds européen de financement solidaire pour l’AFrique), in addition to its financial support, offers a technical assistance facility to rural players. In this context, it provides its customers with specialized service providers who help them to strengthen their viability and improve their productivity, while preserving the living conditions of small-scale agricultural producers.

Since its creation just ten years ago, Fefisol has financed 139 support projects for 51 customers in 22 African countries. Over two-thirds of beneficiaries are small microfinance institutions (MFIs) undergoing consolidation[1] or agricultural entities. A quarter of the technical support projects supported by the fund relate to financial issues, in particular accounting monitoring and strengthening internal control.

The technical support program reinforces the impact of financial support. At the beneficiary level, the two levers of action are complementary: Fefisol loans enable companies to grow their business, while technical expertise helps them secure this growth by improving their efficiency. In terms of fund management, technical support in return enables investment managers to improve their understanding of how investee companies operate, thus guaranteeing greater operational efficiency.

Fefisol’s TA offer stands out above the rest by providing a tailor-made response to customer needs. The customer is heavily involved in the entire process, including the selection of the service provider. This sense of ownership is also reinforced by the direct financial contribution that each customer must make to the project[2].

INVOLVE THE CUSTOMER IN ALL PHASES OF THE PROCESS

Over the decade, the needs of Fefisol’s customers have changed considerably. For almost two years now, due to the economic crisis linked to the Covid-19 pandemic, requests to the fund have mainly been for equipment coverage not provided for in their annual budgets. For their part, MFIs have asked for support in managing liquidity in a crisis context. Fefisol has responded to this need by organizing, with partners, an online training course on this topic.

The independent evaluation of the facility in 2019 will assess the impact of technical support on beneficiaries. Many TA missions respond to opportunities and needs for fundamental change within beneficiary institutions. In many cases, TA projects have helped to kick-start an in-depth transformation process. By enabling customers to test innovations more quickly and easily, they help speed up the implementation of optimal solutions.

Several lessons can be drawn from these ten years of activity. The main one remains the need for the customer to take ownership of the technical support project. As such, his involvement in the process is crucial, from defining his needs for a customized solution to managing the consultant. It is also important to maintain a certain degree of agility throughout the implementation of TA projects, to ensure an effective response.

MEETING THE CHALLENGE OF PROJECT IMPACT ASSESSMENT

Downstream, the major challenge of this type of scheme remains that of evaluating the impact of TA programs on beneficiaries. Thanks to the possibility of granting successive financing and to its processes for monitoring the performance of its customers, Fefisol nevertheless has powerful tools for characterizing and documenting this impact over time.

To support this ramp-up, a Fefisol 2 fund will be launched in March 2022. Following on from Fefisol 1, it will continue to offer financial and technical services to rural MFIs and agricultural entities, with the ambition of deepening its social and environmental approach to projects. As such, the AT facility will have a compartment dedicated to improving sustainable agricultural practices and financing agriculture, while retaining its “tailor-made” approach so as to meet all its customers’ needs.

[1 ] Tier 3 MFIs, with total assets of less than USD 5 million.

[2 ] This mandatory contribution – at least 15% of each mission – explains the relatively low average value of TA projects.

 

Successful 5th African Microfinance Week in Kigali

[chapeau]The 5th edition of African Microfinance Week brought together nearly 600 inclusive finance professionals from 55 countries in Kigali, Rwanda. A tremendous success![/chapeau]

African Microfinance Week (AMW) is the largest conference on inclusive finance in Africa. Organized every two years in a different African country, it features conferences, training and workshops, an innovators’ village, and of course the investor fair in which the SIDI team plays an active part. A networking event dedicated exclusively to investors and African MFIs, the investor fair enables SIDI to forge future partnerships.

The SAM is an essential event for exchanging and sharing expertise on inclusive finance. The theme chosen for this year’s event was resilience: ” You’re not born resilient, you become resilient: strengthening inclusive finance to better overcome crises “. This was the first time the SAM had been held in Rwanda. This choice has enabled us to shine the spotlight on a country that has shown tremendous resilience and a phenomenal ability to adapt.

As always, the SIDI team was on hand. The emotion of being back in the flesh, and seeing the success of our participation, was palpable.

Why so many people? The impact of microfinance has always been the subject of debate. It’s a fact that microfinance is resilient, that it continues to provide concrete solutions and that, thanks to the leverage it generates, it enables individuals to define their own destiny.

At this 5th edition, everyone was able to gauge the vitality of African MFIs. In the face of the health crisis, MFIs ultimately managed to cope with the liquidity problems they faced. This shows the considerable work carried out by MFIs over the past 20 years, making them already resilient. The current crises – whether the health crisis linked to Covid19, the ensuing economic crisis, the issue of access to employment for young people, or the crucial challenge of adapting to climate change – must also be an opportunity to change practices, innovate, and advance the solutions that enable this adaptation. From the investor’s point of view, crises can have the beneficial effect of encouraging us to get closer and more involved together.

SIDI continues to forge ahead, placing solidarity at the heart of the economy and finance. Invest in small MFIs, establish long-term partnerships, share the partners’ vision and risk, so that these partnerships serve to consolidate the structures. Supporting the MAIN network in its capacity building program for its members – over 125 African MFIs! Defend the importance of technical assistance and support in response to the needs expressed by partners, to serve an inclusive economy in a process of ecological and social transition.

Some pictures of the event:

(c)GODONG // (c)SIDI

The 2020 activity report is available online

Couv_RA2020_FR(final)

A pioneer in solidarity investment in the South and East, SIDI publishes its annual report

SIDI offers its partners tailor-made financing and support, and thus works towards a form of finance that generates greater social and environmental impact, transparency and solidarity. A look back at the highlights of 2020 and our activities in favor of the ecological and social transition.