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Mango ECOWAS Investment Profile en

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niibarnie19
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WEST AFRICA

COMPETITIVENESS PROGRAMME
REGIONAL INVESTMENT PROFILE

MANGO VALUE CHAIN

Implemented by:

Funded by
the European Union
© International Trade Centre 2022

ITC encourages the reprinting and translation of its publications


to achieve wider dissemination. Short extracts of this paper may
be freely reproduced, with due acknowledgement of the source.
Permission should be requested for more extensive reproduction
or translation. A copy of the reprinted or translated material
should be sent to ITC.

Street address: ITC


54-56, rue de Montbrillant
1202 Geneva, Switzerland

Postal address: ITC


Palais des Nations
1211 Geneva 10,
Switzerland

Telephone: +41-22 730 0111

Fax: +41-22 733 4439

E-mail: itcreg@intracen.org

Internet: http://www.intracen.org

Unless otherwise noted, all photographs included in this publication are © shutterstock.com.
Photographs are for illustration purposes and may not be an exact representation of
the described product.
Funded by
the European Union

WEST AFRICA COMPETITIVENESS PROGRAMME


REGIONAL INVESTMENT PROFILE

MANGO VALUE
CHAIN

March 2022
ACKNOWLEDGEMENTS

This investment profile has been prepared under the framework of the West Africa
Competitiveness Programme (WACOMP) which is funded by the European Union.
WACOMP is implemented by the International Trade Centre and the United Nations
Industrial Development Organization (UNIDO) in collaboration with the Commission
of the Economic Community of West Africa (ECOWAS). WACOMP covers all ECOWAS
member States plus Mauritania. WACOMP focuses on four selected value chains, namely
mango, textile/garments, information and communication technology and cassava.
It aims to strengthen the competitiveness of West African Countries and enhance their
integration into the regional and international trading system, through an enhanced level
of production, transformation and export capacities of the private sectors in line with
the regional and national industrial and SME strategies.

Special contributions to writing this report have been provided by:

Victor Avah, Mamadou Dabo, Jean Bosco Dibouloni, Mohamed Ali Niang,
Sekongo Soungari

Quality Assurance:

International Trade Centre (ITC), Trade Facilitation and Policy for Business Section (TFPB);
TCA Ranganathan, External consultant; Qasim Chaudry, Associate Programme Officer (TFPB);
Yvan Rwananga, Trade Policy Consultant (TFPB)

Author: Nitidæ and Abdoulaye Seck


Design: Iva Stastny Brosig, Design plus d.o.o
Editor: Vanessa Finaughty

The views expressed in this report are those of the authors and do not represent the official
position of the International Trade Centre or the ECOWAS Commission.

© International Trade Centre 2022


WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

ii
Table of Contents

FOREWORD 5

1. ECONOMIC COMMUNITY OF WEST AFRICAN STATES (ECOWAS)


AS AN INVESTMENT DESTINATION 7
1.1. INTRODUCTION: REGIONAL INTEGRATION IN AFRICA AND ECOWAS 7
1.2. ECOWAS: A PEACEFUL, SECURE AND STABLE REGION 9
1.3. INSTITUTIONAL DEVELOPMENT 10
1.4. EASE OF DOING BUSINESS 12
1.5. INFRASTRUCTURE (HARD AND SOFT) 14
1.6. ECOWAS ECONOMIC PERFORMANCE 15
1.7. TRADE AND FOREIGN MARKET ACCESS 17
1.8. FDI IN ECOWAS: INFLOWS AND INCENTIVES 20
1.9. STRUCTURAL REFORMS ACHIEVED/PLANNED 21
1.10. CONCLUSION 24

2. MANGO SECTOR IN ECOWAS REGION 25


2.1. ECOWAS MANGO SECTOR IN A GROWING GLOBAL MARKET 25
Spread of production and export in ECOWAS 25
ECOWAS production and export trends in the world market 27
2.2. STRATEGIC ACTIVITIES AND SUBSECTORS FOR INVESTMENT 33
Export of fresh mango: Keys to success 33
Mango puree and juice 35
Dried mango 37
Organic and Fairtrade mango 39
2.3. KEY POINTS FOR SUCCESSFUL INVESTMENT 42
Diversify procurement and markets 42
Invest in quality 43
2.4. REGIONAL INVESTMENT OPPORTUNITIES 47

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


3. COUNTRY PROFILES OF THE FIVE MAIN MANGO-EXPORTING
COUNTRIES IN ECOWAS 48
3.1. CÔTE D’IVOIRE 48
Country overview 48
Investing and doing business in Cote d’Ivoire 50
Mango in Côte d’Ivoire: An overview 52
Mango value chain and stakeholders 55
Investing in Mango in Côte d’Ivoire: Key figures 57
Investment opportunities in Côte d’Ivoire’s mango sector 58
Investment and mango sector support structures and programmes 58
SWOT of Côte d’Ivoire’s mango sector 60

1
3.2. SENEGAL 61
Country overview 61
Investing and doing business in Senegal 62
Mango in Senegal: An overview 64
Mango value chain and stakeholders 67
Investing in Mango in Senegal: Key figures 70
Investment opportunities in Senegal’s mango sector 71
Investment and mango sector support structure and programmes 71
SWOT of Senegal’s mango sector 73

3.3. MALI 74
Country overview 74
Mali standing in the african and global scontexts 75
Investing and doing business in Mali 75
Mango in Mali: An overview 77
Mango value chain and stakeholders 80
Investing in mango in Mali: Key figures 82
Investment opportunities in Mali’s mango sector 83
Investment and mango sector support structures and programmes 83
SWOT of Mali’s mango sector 87

3.4. BURKINA FASO 89


Country overview 89
Investing and doing business in Burkina Faso 90
Mango in Burkina Faso: An overview 93
Mango value chain and stakeholders 95
Investing in Mango in Burkina Faso: Key figures 97
Investment opportunities in Burkina Faso’s mango sector 98
Investment and mango sector support structure and programmes 99
SWOT of Burkina Faso’s mango sector 100

3.5. GHANA 101


Country overview 101
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Investing and doing business in Ghana 103


Mango in Ghana: an overview 106
Mango value chain and stakeholders 108
Investing in Mango in Ghana: Key figures 111
Investment opportunities in Ghana’s mango sector 112
Investment and mango sector support structure and programmes 113
SWOT of Ghana’s mango sector 115

ANNEX 116
ANNEX 1: LIST AND CONTACT DETAILS OF MAJOR STAKEHOLDERS
IN THE MANGO SECTOR 116

2
List of Figures

Figure 1: ECOWAS member states 8


Figure 2: Real GDP growth of the fastest-growing African economies (2010–19) 15
Figure 3: Export and import growth (%) in ECOWAS and other RECs (2010–18) 17
Figure 4: Commodity exports composition of West African countries (USD billion, 2018) 17
Figure 5: Services trade composition of ECOWAS (2018) 18
Figure 6: FDI total stock in ECOWAS and other African RECs (USD billion, 2019) 20
Figure 7: Daily exchange rates of selected West African currencies against the USD (365 days) 22
Figure 8: Mango production region in ECOWAS and Mauritania 25
Figure 9: Average annual rainfall in West Africa 26
Figure 10: Estimated mango production in West Africa (in thousands of tons) 26
Figure 11: Estimated destination and uses of ECOWAS mango production (average in 2019–20) 27
Figure 12: Share of world mango production by main producing countries 27
Figure 13: Share of world mango trade by main exporters 28
Figure 14: International mango trade 29
Figure 15: World mango trade and market share of ECOWAS among main exporting countries 29
Figure 16: Evolution of global and ECOWAS mango export values 30
Figure 17: Comparison of fresh and dry mango prices (CIF, USA) 30
Figure 18: Worldwide mapping of mango production calendar 31
Figure 19: Monthly supply and demand of mango in the EU market 32
Figure 20: Shares of fresh exports among mango uses in main exporting countries 33
Figure 21: Share of mango juice and puree among mango uses in main exporting countries 35
Figure 22: Share of dried mango among mango uses in main exporting countries 37
Figure 23: Evolution of US imports of dried mangoes 37
Figure 24: Evolution of organic markets in Europe 39
Figure 25: Total certified organic and organic mango acreages in some ECOWAS countries 40
Figure 26: Diversification strategies in the mango value chain 42
Figure 27: National standard for mango trading and processing in ECOWAS countries 43
Figure 28: Mango production by region in Côte d’Ivoire 52
Figure 29: Production outlets and quantity of exported mango from Côte d’Ivoire (in tons) 53
Figure 30: Evolution of Ivorian mango exports by product in 2011–20 54
Figure 31: SWOT of Côte d’Ivoire’s mango sector 60
Figure 32: Mango production by region in Senegal 64 WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Figure 33: Production outlet and quantity of exported mango from Senegal (in tons) 65
Figure 34: Evolution of Senegalese mango exports by product in 2011–20 66
Figure 35: Mango production in Mali by region 77
Figure 36: Production outlet and quantity of exported mango from Mali (in tons) 78
Figure 37: Evolution of Malian mango exports (2011–20) (in tons) 79
Figure 38: SWOT of Mali’s mango sector 87
Figure 39: Mango production by region in Burkina Faso 93
Figure 40: Production outlet and quantity of exported mango from Burkina Faso (in tons) 94
Figure 41: Evolution of Burkinabè mango exports by product in 2011–20 (in tons) 94
Figure 42: SWOT of Burkina Faso’s mango sector 100
Figure 43: Mango production by region in Ghana 106
Figure 44: Production outlet and quantity of exported mango from Ghana (in tons) 107
Figure 45: Evolution of Ghanaian mango exports by product in 2011–20 (in tons) 108
Figure 46: SWOT of Ghana’s mango sector 114

3
List of Tables

Table 1: Extent of economic integration in the eight major African RECs 7


Table 2: ECOWAS in the context of some of the major African RECs 8
Table 3: Institutional quality in ECOWAS and other major African RECs 11
Table 4: Doing business in ECOWAS and other major African RECs 13
Table 5: Infrastructure quality in ECOWAS and other major African RECs 14
Table 6: Economic performance in ECOWAS and other major African RECs 16
Table 7: Comparative advantages of ECOWAS member countries (2018) 18
Table 8: Mango sector: Summary of quality requirements, standards and
technical regulations 45
Table 9: Production and export calendar in Côte d’Ivoire 53
Table 10: Investment and mango sector support in Côte d’Ivoire 58
Table 11: Production and export calendar in Senegal 65
Table 12: Investment and mango sector support in Senegal 72
Table 13: Production and export calendar in Mali 76
Table 14: Production and export calendar in Burkina Faso 94
Table 15: Investment and mango sector support in Burkina Faso 99
Table 16: Production and export calendar in Ghana 106
Table 17: Investment and mango sector support in Ghana 113

Abbreviations & Acronyms


ACP African, Caribbean and Pacific Group of HACCP Hazard Analysis and Critical Control Points
States ICT Information and communications
AGOA African Growth and Opportunity Act technology
APEX Agence pour la Promotion des Exportations IFM Interprofession Filière Mangue
CET Common external tariff IMF International Monetary Fund
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

COMESA Common Market for Eastern and Southern ISO International Organization for
Africa Standardization
ECCAS Economic Community of Central African ITFC Integrated Tamale Fruit Company
States REC Regional economic community
ECOWAS Economic Community of West African SADC Southern African Development Community
States SEZ Special economic zone
ETLS ECOWAS Trade Liberalization Scheme SMEs Small and medium-sized enterprises
EU European Union UNCTAD United Nations Conference on Trade and
FDI Foreign direct investment Development
FIRCA Interprofessional Fund for Agricultural WACOMP West African Competitiveness Programme
Research and Advisory Services WAEMU West African Economic and Monetary Union
G&S Goods and services
GDP Gross domestic product
GIZ Deutsche Gesellschaft für Internationale
Zusammenarbeit

4
FOREWORD

ECOWAS COMMISSION

The regional investment profile on the With a production of more than 1700,000 tons of mangoes
mango value chain is being developed per year, the region is the largest mango producer on the
within the framework of the West Africa continent and one of the largest mango producers in the
Competitiveness Programme (WACOMP) world. Only less than 20% of the mangoes produced are
funded by the European Union and nowadays processed, thus offering multiple opportunities
implemented by the United Nations for trade, investment and manufacturing of mango products.
Industrial Development Organisation
(UNIDO) and the International Trade Centre (ITC) in Geneva. West Africa’s population now exceeds 397 million and
the current supply of processed mango products is
The WACOMP programme aims to strengthen West Africa’s not yet sufficient to meet the market’s needs. With the
economic competitiveness and develop various national and implementation of the African Continental Free Trade Area
regional value chains, including cassava, mango, textiles and (AfCFTA), the aim is to satisfy an African market of more
clothing, and information and communication technology, than 1.4 billion people.
and to improve the business climate in the region.
The ECOWAS Commission welcomes the publication of this
This investment profile is a resource to be shared and a investment promotion tool for West Africa and would like to
compendium of information presenting the region’s potential take this opportunity to thank its partners for their support
in the mango value chain. It is designed to support the private and efforts in its design and production.
sector in its search for new project ideas and facilitate
investment decisions. We wish future users of these profiles every success.

Mr. Mamadou TRAORE

FOREWO
Its development is part of the implementation of the West
African regional industrialisation policy, the EU investment Commissioner for Industry and Private Sector
policy and the ECOWAS trade policy. Promotion

EUROPEAN UNION DELEGATION TO NIGERIA AND ECOWAS


At the EU, we are delighted at the dynamic Attracting investment and creating a business enabling
cooperation between us, the Regional environment is key to the successful diversification and
Economic Communities (RECs) and the development of the economies in the region and indeed the
private sector across the region. The whole continent. This is also true for the mango, ICT, textile
investment profile study is being supported and cassava value chains. Investment facilitation is at the
by West Africa Competitiveness Programme heart of the EU Global Gateway initiative which aims at the
(WACOMP). This is one of our flagship EU institutions and EU Member States jointly mobilising up to
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
programmes implemented in West Africa. As a programme EUR 300 billion of investments in selected sectors. The EU is
dedicated to improving the competitiveness of the region in also partnering with Africa under the EU External Investment
several value chains, it becomes imperative to showcase the Plan (EIP). With this, the EU is committed to creating jobs,
potentials of some of those developed value chains. In order to boosting economies and offering people a brighter future.
boost investment (local and international), create jobs especially
for the youth in a world struggling and recovering from the This report will provide investors relevant information about
COVID pandemic, there is no better time than now to promote how to take advantage of opportunities across the value chains,
the investment opportunities in West Africa/ECOWAS. from production to the market. By taking strategic investment
opportunities, investors will be contributing to the economic
We are therefore, wholeheartedly in support of the publications development of the region.
of the ECOWAS Investment Profiles for Mango, Information
and Communication Technology (ICT), Textile and Cassava. We I would like to thank the ITC and our other WACOMP partners
note that, about 4% of global mango production takes place for undertaking this very useful study of the investment profiles
in West Africa and a substantial percentage of the produced in 4 critical sectors (Mango, ICT, Textile and Cassava) that will
mangoes are exported to Europe and other parts of the world. boost and support investment in the public and private sectors,
With improved production, processing and packaging practices the governments and the people of West Africa.
the sector will enjoy tremendous growth.
Cecile TASSIN-PELZER
Head of Cooperation, European Union Delegation to
Nigeria and ECOWAS
5
6
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
1. ECONOMIC COMMUNITY OF
WEST AFRICAN STATES (ECOWAS)
AS AN INVESTMENT DESTINATION

1.1. INTRODUCTION: REGIONAL INTEGRATION IN AFRICA AND ECOWAS

There is wide and longstanding recognition within The Economic Community of West African States
African leadership that economic prospects (ECOWAS) was the first post-independence regional
in most African countries are limited by small economic community (REC) to be established
national markets. Approximately one-third of following the Treaty of Lagos on 28 May 1975
African countries have a gross domestic product (with a Revised Treaty on 24 July 1993).1 Other
(GDP) of less than $10 billion. Nearly half have a countries and regions followed suit, creating as
per capita income of less than $1,200, and one- many as 14 RECs. As a result of various initiatives
third have a landmass of less than 100,000 km2. to unite African countries into regional markets, the
Accordingly, ever since independence in the 1960s, overlapping of African RECs offers a visual depiction
national leaders have consistently made efforts to of a ‘spaghetti bowl’. Eight of these regional
secure regional integration, a grouping of national bodies constitute the building blocks of the African
economies intended to create a liberalized single Economic Community established by the 1991 Abuja
market through harmonized economic policies and Treaty, the overarching framework for continental
the removal of tariff and non-tariff restrictions on economic integration.2
trade within the corresponding bloc. The expectation
is that this would allow member countries, especially One of the region’s advantages is its geographical
smaller ones, access to scale efficiencies and to location, as it is at the crossroads of important
exploit any existing synergies among economies routes linking Europe, the Americas and the rest of
that would materialize into rapid economic Africa. This relative proximity to some of the world
transformation and growth and development. economic epicentres undoubtedly makes the region
a true hub, which makes trading with these parts of
the world relatively less costly.

Table 1: Extent of economic integration in the eight major African RECs


Economic Community of West Free trade area; customs unions; common currency in force for the West African
African States (ECOWAS) Economic and Monetary Union (WAEMU) subset, in progress for the whole region
Common Market for Eastern and WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Free trade area; customs union and currency union in progress
Southern Africa (COMESA)
Economic Community of Central For the Economic and Monetary Community of Central Africa (CEMAC) subset: free trade
African States (ECCAS) area, customs unions and currency union
Southern African Development For the Southern African Customs Union (SACU) subset: free trade area and customs
Community (SADC) union; currency union in progress for the whole region
East African Community (EAC) Free trade area; customs union and currency union in progress
Community of Sahel–Saharan
No free trade; no customs union; no currency union
States (CEN-SAD)
Intergovernmental Authority on
No free trade; no customs union; no currency union
Development (IGAD)

Source: United Nations Economic Commission for Africa (UNECA).

1 The signatories included all current 15 West African countries, except the Republic of Cabo Verde, which joined the following year. The Islamic
Republic of Mauritania withdrew in 2000, but applied for a new associate membership in August 2017. The Kingdom of Morocco has also shown
interest in joining the community since February 2017.
2 The remaining regional blocs are the Mano River Union (MRU) in Western Africa, the Indian Ocean Commission (IOC) in Southern Africa, the
Economic Community of the Great Lakes Countries (CEPGL) in Central and Southern Africa, the Liptako-Gourma Authority (LGA) in Western 7
Africa, the Greater Arab Free Trade Area (GAFTA) between North African and Middle Eastern states), and the Southern African Customs Union
(SACU).
This uniquely favourable geographical position, southern tropical monsoon and rainforest. It is
combined with ever-improving living conditions and estimated that the region hosts more than 29%
an increasingly attractive business environment, of total proven oil reserves in Africa, and more
helps explain the 13.3% increase in international than 36% of natural gas reserves.3 The resource
arrivals from tourism, both business and leisure, portfolio also includes minerals such as diamonds,
in 2015–18. The figure is more than twice the gold, uranium, platinum, copper, cobalt, iron,
5.7% average in the rest of Africa. bauxite, silver, iron ore and phosphate. This largely
untapped wealth provides vast opportunities for
The region also enjoys a vast array of natural industrialization and economic development, in the
resources, ranging from the northern arid and face of ever-increasing world demand for such
semi-arid Saharan Desert and the Sahel to the commodities.

Figure 1: ECOWAS member states

MALI
CABO VERDE
NIGER

SENEGAL

BURKINA
GAMBIE FASO
GUINEE
BENIN

GUINEE NIGERIA
BISSAU COTE
D’IVOIRE GHANA
SIERRA
LEONNE TOGO
LIBERIA
Source: Retrieved from ECOWAS.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Table 2: ECOWAS in the context of some of the major African RECs


ECOWAS AMU COMESA ECCAS SADC
Establishment date 1975 1988 1994 1983 1980
Number of member countries 15 5 19 11 15
Landmass (million km ) 2
5.1 5.8 12 6.5 10
Population (million) 386.9 102.5 553.8 198.5 353.1
Regional integration performance
(United Nations Economic 0.43 0.49 0.37 0.44 0.34
Commission for Africa, 0-1)
Trade integration 0.44 0.48 0.45 0.36 0.34
Productive integration 0.22 0.45 0.33 0.32 0.24
Macroeconomic integration 0.47 0.57 0.37 0.68 0.42
Infrastructure integration 0.30 0.51 0.32 0.37 0.21
Free movement of people 0.73 0.44 0.39 0.47 0.49

Source: Author’s calculations, from World Bank and United Nations Economic Commission for Africa.

8 3 Source: http://www.bp.com/statisticalreview.
The drive towards a common regional market that 1.2. ECOWAS: A PEACEFUL,
would effectively provide the basis for greater SECURE AND STABLE REGION
economic efficiency has progressed along the
following steps:
The region has become a more peaceful place to
i. The free movement of goods and services through
live and do business. Although some countries of
the removal of tariff and non-tariff barriers,
the region have recently faced political turmoil,
under the framework of the ECOWAS Trade
others have been ranked by the World Bank
Liberalization Scheme (ETLS), adopted in 1979;
among the most politically stable and less violent
ii. The adoption, the same year, of the Protocol on on the continent. The latest figures of the World
the Free Movement of Persons and the Right of Governance Indicators, in their ‘Political Stability/
Establishment and Residence, further facilitated No Violence’ dimension, have ranked the region
since 2014 by a common biometric identity card as peaceful place: “The region averages 36.8/100,
to be used as a travel document in the region in comparison to other regions such as the Arab
in place of the ECOWAS Travel Certificate; the Maghreb Union (AMU) or the Common Market
Protocol, in particular, pertains to non-national for Eastern and Southern Africa (COMESA) which
investors, including those outside the region, who average 29.2/100 and 35.1/100 respectively.6
can start and do business anywhere in the region
and hire workers from any nationality; The number of internally displaced persons resulting
iii. A common external tariff (CET), effective since from conflict and violence has decreased by
1 January 2015 with a simplified code made up of 27.3% since 2013 to reach 318,944 in 2018 in the
five tariff bands; region. Elsewhere in Africa, the trend has been in
the opposite direction, with corresponding figures
iv. Macroeconomic stability surveillance mechanisms
of 47.5% and 624,071. Security has also been
through convergence criteria; and
improving significantly, with an average of 2.5 crimes
v. A single currency (XOF) for the subgroup of eight per 100,000 people, against 10 elsewhere in Africa.7
countries that make up the West African Economic
and Monetary Union (WAEMU),4 with a common There are, however, some concerns related to political
central bank (in charge of monetary policy) and and religious turmoil. They include instability and violence
a fixed exchange rate regime against the euro. that quite often mars national election processes, such
The monetary union will be extended to the whole as recently in Guinea and the Republic of Cote d’Ivoire,
ECOWAS region – with Eco being the official name or military coups that undermine the democratic
of the regional currency. process, such as in the Republic of Mali. Religion-based
violence and terrorism are also prevalent, most notably
The dynamism has been reaffirmed through Vision in the Sahel region of Mali, Burkina Faso, the Republic
2020, adopted through a resolution in June 2007, of the Niger and the Federal Republic of Nigeria. Sahel
which actively seeks to ‘create a borderless, is the transition region between the Saharan Desert
peaceful, prosperous and cohesive region, built to the north and the Sudanese savanna to the south,
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
on good governance and where people have the stretching between the Atlantic Ocean to the west and
capacity to access and harness its enormous the Red Sea to the east. If the West African Sahel has
resources through the creation of opportunities indeed experienced instability in the recent decades,
for sustainable development and environmental the region outside the Sahel, which is of a larger size
preservation’.5 (except in Niger), is more of a haven, being spared from
such instability. The situation is improving as a result of
The ensuing collective and national efforts are national and collective efforts, with support in many cases
meant to further raise the region’s attractiveness, from Western powers, although the way to lasting peace,
which rests on improved peace security and stability, security and stability proves relatively long.
strong institutions, ease of doing business, high-
quality infrastructure, strong economic performance, Additionally, the establishment in June 2015 of
intraregional and international trade performance, the Mediation Facilitation Division (MFD), a
as well as large foreign direct investment (FDI) directorate within the ECOWAS Department
inflows. of Political Affairs, Peace and Security (PAPS),

4 The eight WAEMU countries are the Republic of Benin, Burkina Faso, the Republic of Guinea-Bissau (joined in May 1997), Cote d’Ivoire, Mali,
Niger, the Republic of Senegal, and the Togolese Republic.
5 Source: https://www.ecowas.int/about-ecowas/vision-2020/.
6 Source: author’s calculations, based on data from World Bank, WIPO and Heritage Foundation. Scores are averages for 2010-2018 on 0-100
scale and high values are synonymous with high quality institutions
7 Source: World Bank’s World Development Indicators, and author’s calculations. 9
constitutes an important instrument for
conflict prevention, management, resolution,
peacekeeping and security. It aims to promote
‘preventive diplomacy in the region through
competence and skills enhancement of mediators,
information sharing and logistical support’.8 Specific
interventions include the creation of an enabling
environment for the resolution of pre-electoral/
political disputes prior to holding elections (such
as in Guinea in 2015 and in Niger in 2015–16), and
providing technical support to the ECOWAS special
envoys tasked to resolve political and institutional
crises (such as in Guinea Bissau in 2015). All of
these are further indications of the region’s strong
commitment towards greater peace and stability.
effectiveness, regulatory quality, rule of
law and control of corruption, in addition to political
1.3. INSTITUTIONAL DEVELOPMENT stability and absence of violence. In each one of these
dimensions, the 2019 survey reveals positive and
The quality of the institutional setting has also been on significant differentials in favour of ECOWAS countries,
the rise as populations and governments across the ranging from 1.6% (political stability and absence of
region (and the whole continent) resolutely embrace violence) to 5.5% (regulatory quality) and 12.7% (voice
democratic principles and rule of law. Almost all related and accountability).10 These differences are indicative
indicators have shown significant improvement across of how far traditions and institutions, by which
the region, often at a faster pace than the rest of Africa. authority is exercised, have been accommodating
For example, ECOWAS countries rank higher in the business activities in the regional context, as opposed
Index of Economic Freedom9 that captures countries’ to other parts of Africa. In fact, investors tend to be
ability to ‘promote economic opportunity, individual very sensitive to ‘the process by which governments
empowerment and prosperity’ through: are selected, monitored and replaced; the capacity
of the government to effectively formulate and
ƒ The rule of law (property rights, government
implement sound policies; and the respect of citizens
integrity and judicial effectiveness);
and the state for the institutions that govern economic
ƒ Government size (government spending, tax and social interactions among them’.11
burden and fiscal health);
ƒ Regulatory efficiency (business freedom, labour When it comes to dispute settlements between an
freedom and monetary freedom); and investor and a State, the Protocol on the Community
ƒ Open markets (trade, investment, and financial Court of Justice established the ECOWAS Court
freedom). of Justice in 1991, based in Abuja, Nigeria. Since
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Supplementary Protocol A/SP.1/01/05 in 2005,


In the last decade, countries across the region have any private person can access the judicial organ for
gained 2.3% to reach the average score of 55.8/100 disputes arising under ECOWAS community law. In
in 2020. More than half of them (eight) make up the particular, under Article 9 of the Protocol, the court
20 African countries with the highest scores. Overall, has jurisdiction over any matter provided for in an
the region is second to the SADC, which scored 57.5 agreement where the parties provide that the court
the same year. shall settle disputes arising from the agreement. Its
rulings supersede national legislations and have to be
The region is also consistently ahead of the rest of automatically enforced by national courts. Disputes
the continent when it comes to the World Bank’s can be between a private party (investor or business,
indicators that capture governance quality. They etc.) and a member state or between two private
comprise voice and accountability, government parties.

8 Source: ECOWAS (2020). ‘ECOWAS Capacity Building Training Programmes On Dialogue And Mediation: Lessons Learnt And Assessment Study’
(Page 11).
9 Source: https://www.heritage.org/index/ranking.
10 Source: https://info.worldbank.org/governance/wgi/; following quotes are from the same source.
10 11 Quotes are from the World Bank’s WGI website (http://info.worldbank.org/governance/wgi/).
Table 3: Institutional quality in ECOWAS and other major African RECs
ECOWAS AMU COMESA ECCAS SADC
Global Innovation Index (score 0–100) 20.2 26 23 22.6 24.5
Political stability/no violence (score 0–100) 37.5 28.7 35.0 32.8 43.6
Rule of law (score 0–100) 38.3 36.7 35.4 27.6 38.4
Control of corruption (score 0–100) 40.4 36.2 34.6 29.7 40.0
Regulatory quality (score 0–100) 38.3 29.8 33.0 29.5 38.0
Index of Economic Freedom
55.8 55.3 54.8 52.6 57.5
(score: 0–100)

Source: Author’s calculations, based on data from the World Bank and World Intellectual Property Organization.

In addition to the judicial organ, the administrative One of its corporate objects pertains to carrying
structure includes the ECOWAS Commission, the out any commercial, industrial or agricultural
administrative governing instrument that is viewed activity, in as much as such activity is secondary
as the ‘engine room of all ECOWAS programs, to its objective. Among the beneficiaries of EBID’s
projects and activities’.12 Headquartered in Abuja, financial and technical assistance are corporate
Nigeria, it is mainly tasked with implementing bodies from ECOWAS member states or from foreign
regional programmes and protocols through countries desirous of investing in the ECOWAS zone,
the adoption of rules that have legal force. The in sectors within EBID’s areas of intervention. For
Commission also makes recommendations, gives private sector project funding, requests submitted
advice and provides support to country members to to the president of the bank can top $22.5 million,
develop their capacities for national appropriation of insofar as they fall within the scope of its areas
regional agreements. of intervention. The latter include industrial
activities such as agribusiness, mining industry,
The ECOWAS Bank for Investment and Development other industries, technology transfer, technological
(EBID) is another important regional institution.13 innovation, and services sectors such as financial
Since its establishment in 1999, as a replacement services or services related to information
of the Fund for Cooperation, Compensation and technology, financial engineering or hotels.14
Development of the Economic Community of West
African States (ECOWAS Fund), the EBID has been
contributing to the financing of infrastructure
projects relating to regional integration or any
other development projects in the public and
private sectors. The EBID has also assisted in
the development of ECOWAS by funding special
programmes. It has two subsidiaries: the ECOWAS
Regional Development Fund (ERDF) for financing the
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
public sector and the ECOWAS Regional Investment
Bank (ERIB) for financing the private sector.

12 More details about the specific responsibilities and functions of the ECOWAS Commission and how it is manned can be found at
https://www.ecowas.int/institutions/ecowas-commission/.
13 Additional institutions include the Authority of Heads of State and Government, the Council of Ministers, the Community Parliament, and
specialized technical committees. There are also ECOWAS specialized agencies, such as the West African Health Organization (WAHO), the West
African Monetary Agency (WAMA), the West African Monetary Institute (WAMI) the Inter Governmental Action Group Against Money Laundering
in West Africa (GIABA), ECOWAS Gender Development Centre (EGDC), ECOWAS Youth and Sports Development Centre (EYSCD), ECOWAS Centre
for Renewable Energy and Energy Efficiency (ECREEE), ECOWAS Regional Electricity Regulatory Authority (ERERA), West African Power Pool
(WAPP), Regional Agency for Agriculture and Food (RAAF), ECOWAS Project Preparation and Development Unit (PPDU), the Water Resources
Coordination Centre, and the ECOWAS Brown Card Scheme. Overall, the general structure resembles that of the European Union.
14 Additional details, including specific private sector projects already funded at national or regional levels, can be found at
https://bidc-ebid.org/en/home/aboutus. 11
1.4. EASE OF +ESS
Doing business in the region is becoming easier. Additionally, the region is well perceived by domestic
The overall score has, in effect, increased by 10.6% and international business communities when it
in the last decade to reach an average score of comes to market prospects such as size, growth,
53.4 out of 100 in the 2020 survey. The increase intensity, consumption capacity and receptivity,
is the highest in Africa: it is more than twice the and commercial infrastructure, economic freedom
changes in other RECs. The corresponding strong and country risk. According to the 2020 Market
pace of reforms would, in the near term, make doing Potential Index, three out of the 15 African countries
business in the region equally easy or even easier that were ranked were located in the region: Cote
than the rest of Africa. d’Ivoire, Nigeria and the Republic of Ghana. They
scored an average of 19/100, which was higher than
The current business environment makes starting a their fellow Africans scored (15.5).15
business much easier and less costly in the ECOWAS
region, on average, compared to other African In the Best for Business category, Ghana, Senegal,
RECs. For example, it takes less time to register Cabo Verde, Nigeria, Cote d’Ivoire and Benin
a business, the number of procedures involved is are ranked among the top 20 African countries,
lower and the corresponding fees are among the as a combination of GDP growth, the level of
lowest in Africa. development (GDP per capita), trade performance
(trade balance/GDP) and market size (population).16
The region provides the strongest legal rights
protection system in Africa, as far as the credit
market and minority shareholders are concerned.

Trade costs, as related to border and document


compliance, are among the lowest on the continent,
as is the recovery rate when it comes to resolving
insolvency.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

15 Source: https://globaledge.msu.edu/mpi/2020.
16 Source: https://www.forbes.com/best-countries-for-business/
12 list/#tab:overall.
Table 4: Doing business in ECOWAS and other major African RECs
ECOWAS AMU COMESA ECCAS SADC
Overall score 2020 53.4 54.9 54.9 44.5 58.2
Change – since 2010 10.6 4.9 6.6 4.7 5.0
Starting a business
Starting a business – procedures
5.5 6.6 7.6 7.6 7.8
(number)
Time (days) 9.6 15.4 23.1 22.3 25.7
Paid-in minimum capital (% of income
3.5 6.0 7.5 25.8 0.3
per capita)
Dealing with construction permits
58.7 58.6 56.9 57.4 65.0
– score
Procedures (number) 16.1 14.8 13.9 14.3 14.0
Time (days) 137.2 106.5 137.0 154.0 149.7
Cost (% of warehouse value) 11.1 4.5 8.0 10.4 7.0
Getting electricity – score 49.9 70.0 54.4 46.8 59.7
Procedures (number) 5.3 4.4 4.5 5.5 5.3
Time (days) 124.3 73.0 100.1 94.1 111.1
Reliability of supply and transparency
15.0 45.0 24.3 12.5 31.7
of tariff index
Price of electricity (US cents per kWh) 21.0 10.5 13.7 14.2 14.1
Registering property – score 53.4 58.8 60.6 50.0 56.7
Procedures (number) 5.8 5.0 6.0 5.7 6.3
Time (days) 51.1 31.8 36.7 58.5 51.1
Cost (% of property value) 7.4 4.8 4.6 8.8 6.7
Reliability of infrastructure index 15.8 43.8 35.8 18.2 30.0
Getting credit – score 47.3 29.0 51.3 37.7 53.7
Strength of legal rights index 50.6 15.0 47.9 42.4 41.7
Credit bureau coverage (% of adults) 7.0 6.3 12.0 1.4 23.9
Protecting minority investors –
40.5 40.4 46.4 27.8 47.3
score
Extent of shareholder rights index 45.6 33.3 38.5 -- 38.9
Extent of corporate transparency
23.8 31.4 29.5 -- 34.3
index
Strength of minority investor
40.5 40.4 46.4 27.8 47.3
protection index
Paying taxes – score 56.2 63.3 67.5 45.0 70.6
Payments (number per year) 40.7 18.6 28.1 42.0 31.3
Time (hours per year) 268.7 344.6 239.8 458.8 206.5 WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Total tax and contribution rate
46.9 54.4 35.4 53.3 31.8
(% of profit)
Trading across borders – score 56.7 64.7 55.7 39.0 61.1
Time, border/doc. compliance, export/
91.8 66.9 100.6 144.0 78.7
import (hours)
Cost, border/doc. compliance, export/
388.7 340.1 426.0 657.4 419.4
import (USD)
Enforcing contracts – score 50.1 58.3 51.4 41.1 49.2
Time (days) 658.9 553.0 632.6 777.4 694.7
Cost (% of claim) 42.0 24.1 40.1 50.2 43.6
Quality of judicial processes index 39.3 37.2 41.3 33.6 43.7
Resolving insolvency – score 38.5 52.1 45.6 36.4 44.6
Time (years) 3.1 2.0 2.5 3.9 2.2
Cost (% of estate) 20.9 10.7 19.1 33.5 16.7
Recovery rate (cents on the dollar) 25.1 43.6 30.5 15.3 34.9

Note: All scores are on a 0–100 scale, unless otherwise specified. Darker grey shadings represent areas where the ECOWAS region fares better than
the rest, and lighter grey shadings correspond to the region being ranked second.

Source: Author compilations, based on data from Doing Business 2020, World Bank (https://www.doingbusiness.org/en/data).
13
1.5. INFRASTRUCTURE (HARD AND SOFT)
When it comes to physical (hard) infrastructure, which are ‘important factors multinational
according to the African Infrastructure Development corporations to non-governmental organizations
Index, the region is trailing other RECs, but there is should consider as they decide where and why to
noticeable improvement that suggests it is catching invest’.
up, as it has embarked on ambitious regional and
national infrastructure development programmes. Further to the region’s dynamism and vibrancy,
the 2020 Global Innovation Index ranked Senegal,
As far as logistics performance is concerned, the Ghana, Cote d’Ivoire and Nigeria among the top
overall World Bank ranking puts the region third 15 most innovative economies in Africa.18 This
among Africa’s RECs. The dimension in which the favourable outcome is a result of high-quality and
region comes first is the ‘ability to track and trace fairly supportive ‘institutions, human capital and
consignments’. For the remaining sub-components research, infrastructure, market and business
of the overall index, the region comes second for the sophistication and the scope of knowledge and
‘ease of arranging competitively priced shipments’. technology and creative outputs’.

Furthermore, from the perspective of the Global As a way to attract FDI, increase exports, create
Cities Index, Abidjan, Accra and Lagos have been jobs and generate productivity spillovers, each of
ranked among Africa’s most vibrant and competitive the West African countries has developed at least
cities in 2015–19.17 These rankings are indicative one special economic zone (SEZ). The general goal
of high competitiveness in key areas ranging from is to strengthen the tendency for manufacturing
business activities to culture to human capital, and service industries to geographically concentrate
political engagement and information exchange. in cities and industrial clusters, as a way to ‘build
They are suggestive of the general state of personal resilient infrastructure, promote sustainable
well-being, the economy, innovation and governance, industrialization and foster innovation’.19

Table 5: Infrastructure quality in ECOWAS and other major African RECs


ECOWAS AMU COMESA ECCAS SADC
Logistics Performance Index
48.9 48.0 49.7 47.8 50.0
(World Bank): Overall score
Ability to track and trace
51.4 48.3 49.5 46.5 50.7
consignments
Competence and quality of logistics
46.7 45.7 49.7 47.4 49.4
services
Ease of arranging competitively
50.4 46.6 49.6 50.9 49.5
priced shipments
Efficiency of customs clearance
44.1 44.0 46.4 43.6 46.9
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

process
Frequency with which shipments
reach consignee within scheduled 56.3 57.3 56.3 54.0 57.5
or expected time
African Infrastructure
Development Index (AfDB): 20.6 58.5 34.0 18.2 33.3
Overall
Transport 6.9 16.8 15.7 6.1 13.9
Electricity 17.0 32.5 19.7 13.0 25.0
Information and communications
17.0 32.5 19.7 13.0 25.0
technology (ICT)
Water and sanitation system 63.1 90.2 66.5 61.3 67.0

Note: Values are between 0 and 100, and higher scores indicate better performance.

Source: Author calculations based on data from the World Bank’s Logistics Performance Index, and from the African Development Bank
(http://infrastructureafrica.opendataforafrica.org/hwkjvvf/national-infrastructure).

17 Source: https://www.kearney.com/global-cities/2019; the next quote is from the same source.


18 Source: https://www.globalinnovationindex.org/analysis-indicator; the next quote is from the same source.
14
19 This is one of the UN Sustainable Development Goals (SDGs, the 9th), and it is said to have been adopted at the urging of African delegations.
The functionality of these SEZs is very diverse, in line For key macroeconomic indicators, the region has
with the main objective assigned to them by law. been performing relatively well. It has the lowest
They include export processing zones, free zones, unemployment rates, especially for youth. Inflation
international business centres, technology villages, rates are also very low, as well as public debt burden.
business parks, industrial parks, gas parks and All of these point to a greater macroeconomic
economic cities. In 2018, 56 SEZs were located in stability, a key driver to reduced risk and uncertainty
West Africa. Each ECOWAS member country has for businesses.
at least one SEZ, either fully operational or under
development, and the most recent ones include the Economic growth has also been relatively inclusive,
cross-border SEZ between Cote d’Ivoire, Burkina as poverty has declined significantly. Most countries
Faso and Mali in 2018.20 The smallest SEZ is in Sierra in the region have gone from high rates of 60% on
Leone (less than 100 hectares), and the largest, from average in the early 2000s to approximately 30%
an African perspective, are in Senegal and Ghana (32.6% in Senegal and 33.5% in Cote d’Ivoire).23
(more than 1,000 ha).21 These SEZs tend to be multi-
activity platforms (53 of them), as they are open to a Population dynamics have also benefitted economic
large variety of business activities often interrelated, growth. Total population has increased faster in
while only three are specialized in specific activities. the region (2.7% average) than the whole continent
(2.5% average). In 2019, it reached 386.9 million
While the qualitative performance of SEZs in Africa (28.9% of the total African population of 1.34
tends to be limited, these schemes still remain billion), making the region the second-largest
attractive and viable instruments for industrial consumer market in Africa.
policies.22 Past experience and lessons from
success stories around the world tend to underlie
Figure 2: Real GDP growth of the fastest-
the design of most recent SEZs across the region
growing African economies (2010–19)
(14 since 2000). The expected greater potentials for
industrialization mean that investors established in
Ethiopia (COMESA) 9,5%
these specific locations can definitely enjoy a host of
fiscal and regulatory incentives and infrastructure Rwanda (ECCAS/COMESA) 7,1%
support. Cote d'Ivoire (ECOWAS) 6,7%

Ghana (ECOWAS) 6,6%


1.6. ECOWAS ECONOMIC Tanzania (SADC) 6,3%
PERFORMANCE Guinea (ECOWAS) 6,2%

Prior to the global COVID-19 pandemic, the DRC (ECCAS) 6,1%


ECOWAS region performed well above other RECs
Niger (ECOWAS) 5,9%
in economic growth. Since 2010, the region has
grown an average 4.7%, which is almost 1% higher Burkina Faso 5,7%

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


than the closest region (SADC, with 3.8%). Moreover, Togo (ECOWAS) 5,6%
the region is home to six out of the 10 fastest-
growing African economies in the last decade, with Source: Author, based on World Bank data.
an average growth of 5.6% (Togo) to 6.7% (Cote
d’Ivoire).

20 So far, the shared SEZ has yet to be effective, and various aspects such as related its governance or management, issuance of licences or
permissions and tax collection have not yet been formally developed. Lack of significant political will and insecurity in the region are some
reasons often evoked.
21 Source: UNCTAD: World Investment Report 2019 – Special Economic Zones. Retrieved from https://investmentpolicy.unctad.org/
publications/1204/world-investment-report-2019---special-economic-zones.
22 Additional discussions can be found in Newman, C. and J. Page (2017): Industrial clusters: The case for Special Economic Zones in Africa.
Wider Working Paper 2017/15. Retrieved from https://www.wider.unu.edu/publication/industrial-clusters-1#:~:text=The%20case%20for%20
Special%20Economic,to%20learning%20and%20technology%20transfers.
23 Sources: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/2018AEO/African_Economic_Outlook_2018_West-Africa.
pdf and http://www.uemoa.int/sites/default/files/bibliotheque/indicateurs_de_pauvrete_monetaire_et_dinegalite_de_la_premiere_enquete_
harmonisee_sur_les_conditions_de_vie_des_menages_dans_les_etats_membres_de_luemoa.pdf. 15
As a result of improved living conditions, urban between 38.5% (Benin) and 58.6% (Ghana). At the
population increased by 9.7% since the turn of the same time, access to electricity has almost doubled
century, above the continental average of 8.9%. Of in the last two decades to reach 48% in 2019. Human
the 48 African metropoles with a population of more capital has also improved, with literacy rates averaging
than one million in 2019, more than one-third (14) 48.6% among adults in 2019. Among youth (15–24
are located in West Africa, the largest being Lagos, years old), the average is much higher, at 64%, with a
Nigeria, with 21.3 million. Furthermore, ownership of significant difference across gender: higher for young
an account at a financial institution or with a mobile males (69%) than their female counterparts (57.1%).
money service provider has also increased to reach

Table 6: Economic performance in ECOWAS and other major African RECs


ECOWAS AMU COMESA ECCAS SADC
GDP (nominal, USD billion) 689.2 387.2 746.1 246.3 691.2
Share of agriculture (%) 27.1 14 18.6 19.8 10.4
Share of industry (%) 19.2 29.6 23 31.9 25.8
GDP growth, real, 2010–19 4.7 1.7 3.6 2.6 3.8
GDP per capita (nominal, USD) 1 301.6 3 966.3 3 244.2 2 460.2 4 089.5
Competitiveness score, 0–100 47.3 53.4 48.6 37.0 48.2
Population (million) 386.9 102.5 553.8 198.5 353.1
Population growth (%) 2.6 1.7 2.2 2.7 2.0
Urban population (% of total) 45.9 68.1 38.4 51.6 43.5
Labour force (% of total
37.4 32.0 41.5 39.8 42.9
population)
Literacy, adults (+25 years, %) 48.6 69.6 75.8 68.1 83.7
Literacy, youth (15–24 years, %) 63.0 86.4 87.4 75.9 90.4
Male 69.0 88.9 88.0 79.3 91.3
Female 57.1 83.8 86.8 72.8 89.6
Unemployment, youth (% of total
8.6 30.6 14.2 12.1 21.4
labour force, 15–24yrs)
Self-employed, total (% of total
78.8 34.2 61.1 69.1 57.7
employment)
Inflation – consumer prices (%) 3.4 2.8 9.3 3.4 5.5
External debt stock (% of gross
38.2 58.3 50.6 38.6 42.7
national income)
Domestic credit to the private
20.2 48.0 24.3 15.1 36.8
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

sector (% of GDP)
FDI stock (current, USD billion) 171.7 137.0 253.1 75.0 316.3
Domestic private investment (%
23.6 35.4 23.1 20.8 23.8
of GDP)
Trade balance (% of GDP) -15.6 -5.2 -6.7 -0.5 -13.5
Poverty rate, $1.9, 2011,
33.9 2.4 33.7 41.0 33.4
purchasing power parity (PPP) (%)
Access to electricity (% of
48.5 82.3 52.1 46.8 52.3
population)
Account ownership (% of
36.5 39.0 49.4 32.9 50.3
population, ages 15+)

Source: Author calculations, based on World Bank and World Economic Forum data.

16
1.7. TRADE AND FOREIGN MARKET ACCESS
The ECOWAS region has experienced the largest force.24 Current major trading partners are outside
increase in total exports, with an average rate of the continent and represent 83.7% of the region’s
5.1% annually, to reach $196.2 billion in 2018 at total. African partners outside the region account for
constant prices (the third-largest among the RECs). only 5.6%.
In the same period, imports increased by 1.8% to
culminate at $134 billion in 2018. Combined export Trade composition, which has changed relatively
and import growth suggests a reduction in trade little in the last decade, from the perspective of
deficit. commodities, shows a noticeable concentration of
the export portfolio along the regional (revealed)
The region traded 12% with itself in 2016, only comparative advantages. Fuels and minerals
second to the SADC (21%). This is up from the represented respectively 58.3% and 16.6% of total
1980’s figure of 3.9% when the ETLS entered into merchandise exports of the region in 2018.

Figure 3: Export and import growth (%) in ECOWAS and other RECs (2010–18)
5,12

4,83
3,74

2,18
1,81

1,59
0,74

-0,75
-0,14
-2,26

ECOWAS AMU COMESA ECCAS SADC

Exports Imports
Source: Author calculations, based on World Bank data.

Figure 4: Commodity exports composition of West African countries (USD billion, 2018)
70

65,6

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


60

50

40

30

20
18,7
16,5
10
7,7
4,0
0
Minerals Manufactures Fuels Raw All fodd
agriculture items
Source: United Nations Conference on Trade and Development (UNCTAD) (https://stats.unctad.org/handbook/MerchandiseTrade/ByProduct.html).

24 Source: UNCTAD (https://unctad.org/system/files/official-document/ditctab2019d3_en.pdf). 17


Table 7: Comparative advantages of ECOWAS member countries (2018)
Member
Products
countries
Cotton; Oilseeds and oleaginous fruits; fruits and nuts (excluding oil nuts), fresh or dried; wood in the
Benin
rough or roughly squared; fixed vegetable fats and oils, crude, refined
Burkina Faso Cotton; gold, non-monetary; oilseeds and oleaginous fruits; zinc; fruits and nuts (excluding oil nuts), fresh or dried
Fish and crustaceans; non-ferrous base metal waste and scrap; textiles; animal oils and fats; ferrous
Cabo Verde
waste, scrap; re-melting ingots, iron, steel
Cocoa; natural rubber and similar gums, in primary forms; cotton; fruits and nuts (excluding oil nuts),
Cote d'Ivoire
fresh or dried; coffee and coffee substitutes
Wood in the rough or roughly squared; worn textile/clothing articles; fruits and nuts (excluding oil nuts),
Gambia
fresh or dried; fuel wood and wood charcoal; fabrics, woven, of man-made fabrics
Cocoa; gold, non-monetary; wood in the rough or roughly squared; fruits and nuts (excluding oil nuts),
Ghana
fresh or dried; natural rubber and similar gums, in primary forms
Aluminium ores and concentrates; gold, non-monetary; iron ore and concentrates; natural rubber and
Guinea
similar gums, in primary forms; fish, dried, salted or in brine and smoked fish
Fruits and nuts (excluding oil nuts), fresh or dried; fish, fresh (live or dead), chilled or frozen; fish, dried,
Guinea Bissau
salted or in brine and smoked fish; wood in the rough or roughly squared; cotton
Natural rubber and similar gums, in primary forms; wood in the rough or roughly squared; ships, boats
Liberia
and floating structures; iron ore and concentrates; silk
Cotton; gold, non-monetary; live animals; fixed vegetable fats and oils, crude, refined; wood in the rough
Mali
or roughly squared
Crustaceans, molluscs and aquatic invertebrates; animals oils and fats; works of art, collectors’ pieces
Mauritania
and antiques; fish, fresh (live or dead), chilled or frozen; iron ore and concentrates
Ores and concentrates of uranium or thorium; radioactive materials and associated materials; rice; fixed
Niger
vegetable fats and oils, crude, refined; worn textile/clothing articles
Petroleum oils, crude; fuel wood and wood charcoal; natural gas, whether or not liquefied; petroleum gases;
Nigeria
cocoa
Crude fertilizers; inorganic chemical elements, oxides and halogen salts; fish, fresh (live or dead), chilled
Senegal
or frozen; crustaceans, molluscs and aquatic invertebrates; lime and cement
Aluminium ores and concentrates; cocoa; iron ore and concentrates; wood in the rough or roughly
Sierra Leone
squared; sugar, molasses and honey
Togo Crude fertilizers; cotton; lime and cement; hides and skins, raw; electric current

Source: UNCTAD.

Figure 5: Services trade composition of ECOWAS


The services trade is also relatively important and (2018)
has been picking up speed in the last decade to
reach 7.1% of GDP on average across the region. 552,3
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Structurally, except for travel, communications and Transportation


3312,3
government-related services, the region is a net 1410,3
Travel
importer of services, especially for transportation, 786,1
where the deficit is the largest. The trend has been Communications
24,7
12,5
towards a deterioration of trade balances overall,
175,0
similar to the rest of the continent, while it is the Construction
428,6
opposite in the rest of the developing world. These
36,5
trends are indicative of the relatively large potentials Insurance 431,2
for expansion of domestic production and trade to 107,3
meet increasing demand. This is especially the case Finance 159,5
for insurance, financial, intellectual property, other Computer and 474,7
business, and travel services, which have registered information 516,0
the fastest-growing exports, at rates of 3.2%–6.9% Royalties and 11,2
license 19,2
in 2013–18.
304,3
Other business
967,1
Personal, 7,6
cultural, and… 26,9
386,7
Government 251,1

18 Exports Imports
Source: Author calculations, based on UN Comtrade data.
Foreign market access is key to international With respect to the US market, the region has
trade promotion for the region. With the European benefitted from the African Growth and Opportunity
Union (EU), ECOWAS member countries and Act (AGOA) since 2001 (renewed in 2015 for 10 more
African countries have ease of access to the years) and the trade and investment framework
European market through the overall political and agreements (TIFAs) since 2014.29 The former is
economic relations with the African, Caribbean a non-reciprocal trade preference programme
and Pacific Group of States (ACP).25 This privilege that offers duty-free and quota-free access to the
has contributed to making the EU the main export huge US market for selected sub-Saharan African
destination for West African transformed products products.30 TIFAs are more of an institutional
from sectors such as fisheries, agribusiness and platform that ‘provides strategic frameworks and
textiles. principles for dialogue on trade and investment
issues between the United States and the other
The existing framework is set to evolve into parties’,31 mostly around ‘issues of mutual interest
economic partnership agreements (EPAs), through with the objective of improving cooperation and
which West Africa and other ACP countries will have enhancing opportunities for trade and investment’.
to remove import tariffs on EU-originated goods, but Discussed topics at TIFA council yearly meetings
only partially during a 20-year transition period.26 include market access, labour, the environment,
The new scheme is intended to help West Africa protection and enforcement of intellectual property
(and all ACP partners) to better integrate into the rights, and, in appropriate cases, capacity building.
global trading system and is expected to support There are various TIFAs both at the regional level
investment and economic growth in the region. It with ECOWAS and with WAEMU, and with individual
will lead to increased exports to the EU, stimulate countries such as Ghana, the Republic of Liberia, and
investment and contribute to developing productive Nigeria.32
capacity, with a positive effect on employment.27

The EU–West Africa economic cooperation also


includes aid for trade and trade-related assistance.
Under this framework, the ECOWAS region has
effectively benefitted from the development of:
(i) trade-related infrastructure, which includes
transport and storage, communications, and
energy generation and supply; and (ii) productive
capacity in the forms of business development and
activities aimed at improving the business climate,
privatization, assistance to banking and financial
services, agriculture, forestry, fishing, industry,
mineral resources and mining, and tourism. The
framework also includes trade- and non-trade-
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
related capacity building. The corresponding total
aid-for-trade efforts amounted to €1.2 billion
commitments in 2017.28

25 The EU–ACP agreements constitute the overarching framework first set up in 1975 by the Lomé Convention (replaced in 2000 by the Cotonou
Agreement, which introduced the economic partnership agreement). This cooperation scheme, the largest of its kind between developed
(EU countries) and developing countries (some 79, of which 48 are in sub-Saharan Africa), revolves around three main pillars: development
cooperation, economic and trade cooperation, and a political dimension.
26 The economic partnership agreement was enacted in 2000 (Cotonou Agreement), then revised in 2005. There have been concerns about
the potentially negative impacts of the removal of tariffs on EU products, given the less competitive production systems and the loss of
government tariff revenues in ACP economies, which explains the slow pace of the negotiations to implement the agreements, at both national
level and regional level (jointly between WAEMU and ECOWAS). For example, ‘stepping stone’ agreements with Côte d’Ivoire and Ghana entered
into provisional application on 3 September 2016 and 15 December 2016 respectively.
27 Source: https://trade.ec.europa.eu/doclib/docs/2014/july/tradoc_152694.pdf.
28 Source: https://ec.europa.eu/international-partnerships/system/files/eu-aid-for-trade-progress-report-2019_en.pdf.
29 All member countries are currently eligible to the AGOA provisions, except Mauritania (since 1 January 2019). Eligibility for product category
specific compliance can be different across benefitting countries. For example, since 1 January 2020, Gambia and Niger are not eligible under
the ‘wearing apparel’ provisions. See here for more details: https://agoa.info/about-agoa/country-eligibility.html.
30 See here for the detailed listing of products: https://agoa.info/about-agoa/products.html.
31 Source: https://ustr.gov/trade-agreements/trade-investment-framework-agreements. The next quote is from the same source.
32 Source: https://ustr.gov/trade-agreements/trade-investment-framework-agreements. 19
1.8. FDI IN ECOWAS: INFLOWS AND INCENTIVES
The region has always been an attractive place for sustainable development;
foreign investment, as shown by relatively large ƒ Enhance the role of both domestic and foreign
inflows of FDI that have positively responded to direct investments in reducing poverty, increasing
the improving regulatory environment. In the past productive capacity, furthering growth, creating
decade, the stock of FDI in the region has increased jobs, expanding trade, improving technology and
at record pace to reach $191.5 billion in 2019, the transferring technology.34
third-largest behind the SADC ($316.3 billion) and
COMESA ($302.9 billion). The increase by a factor of Several provisions of this landmark code set the
2.2 in the region, or equivalently, at an annual rate conditions for a viable business environment that
of 9%, is by far the largest in Africa. would mutually benefit both investors and the
host country. For example, member States are
When it comes to investment promotion, especially encouraged to provide relatively strong incentives
FDI, one of the key frameworks at the regional level to investors, domestic and foreign alike. These
is the ECOWAS Common Investment Code (ECOWIC), incentives may take various forms, such as financial
which applies to the rights and obligations of incentives in the forms of investment insurance,
member States and investors. Enacted in July 2018, grants or loans at concessionary rates, tax
the code aims to ‘establish in the ECOWAS territory holidays, subsidized infrastructure, or investment
transparent, harmonized and predictable legal and guarantees.35
institutional framework that applies to investment
and to any investment-related measures’.33 More Foreign investment is generally viewed as a part
specifically, under the monitoring of a regional of the overall development of local economies.
body to be established by the ECOWAS Common Investors are expected to promote technology
Investment Market Council and to work with national transfer and comply with international transfer
advisory committees, code seeks to: pricing standards. When considering the investment,
they are also expected to account for: (i) the
ƒ Promote, facilitate, and protect investment that
participation in the implementation of national or
foster sustainable development of the region;
regional economic and social plans; (ii) the creation
ƒ Promote the adoption of common regional rules of employment and vocational training; (iii) the
on investment; priority of use of local raw materials and, in general,
ƒ Improve investment and trade relations within local products; and (iv) environmental and social
the region and between the region and foreign impact assessment of their economic activities.
investors, conducive to regional stability and

Figure 6: FDI total stock in ECOWAS and other African RECs (USD billion, 2019)
316,3
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

302,9

265,2
191,5

155,5

152,1

118,7
114,7
88,3

71,7

ECOWAS AMU COMESA ECCAS SADC

2010 2019
Source: Author, from UNCTAD data.

33 Source: https://wacomp.projects.ecowas.int/wp-content/uploads/2020/03/ECOWAS-COMMON-INVESTMENT-CODEENGLISH.pdf (same source


for the next quotes).
34 ECOWIC Article 2.
20 35 ECOWIC Article 19.
Additional components of regional and national More specific actions plans include multimodal
approaches to further making the region an transport infrastructure, and the implementation
attractive place for FDI include: of policies to promote physical cohesion among
member countries and to facilitate the movement of
ƒ National investment promotion agencies that
persons, goods and services within the region, with
provide up-to-date information regarding
special emphasis on increased access to landlocked
the process by which investors, particularly
countries. These harmonized national efforts, mainly
foreigners, can settle into the host country, as
well as guidance through the procedures for through the West Africa Regional Transport and
investment and setting up a business activity; Transit Facilitation Project, a common initiative
the set of information generally relates to developed by ECOWAS and its subset, WAEMU, to
starting a business, legal obligations, obtaining speed up the road transport facilitation, include:
an investment certificate, foreign taxpayer ƒ The erection of joint border posts and controls
registration, dealing with local banks, import/ along the interstate corridors;
export registration, land/building ownership, rules ƒ The simplification and harmonization of national
and regulations for foreigners, and investing in any rules, procedures and documents related to road
existing SEZ; transport;
ƒ Single windows at national levels for: (i) starting ƒ The harmonization of standards and procedures
a business, with the aim to streamline and speed for the control of dimensions, weight and axle load
up the administrative process; and (ii) engaging of goods vehicles within ECOWAS member States;
in foreign trade, generally through an electronic
platform used by all operators and users of the ƒ The update of the road transit information system;
foreign trade community (import, export, transit ƒ The development of transport corridors, such as
and transhipment), providing a single entry point the Nigeria–Cameroon multinational highway as
for all customs and collection procedures and part of the Trans-Africa Highway Programme, the
formalities.36 Praia–Dakar–Abidjan highway (capital cities of
Cabo Verde, Senegal and Cote d’Ivoire), the trans-
Gambia transport corridor, and the Abidjan–Lagos
1.9. STRUCTURAL REFORMS Corridor;
ACHIEVED/PLANNED ƒ A deposit system to guarantee transit operations
in the absence of such State-sponsored guarantee
mechanisms.
Ongoing ambitious and profound reforms are rightly
expected to structurally change the region’s trade
and investment landscape. These reforms are part The regional single currency project is also expected
of well-thought-out programmes. The West African to further rationalize cross-border movement of
Competitiveness Programme (WACOMP) seeks to goods (and capitals and persons). While the eight
strengthen the performance, growth and contribution WAEMU countries share a single currency (XOF),
of industry, regional trade and exports of selected each of the remaining ECOWAS countries has its own
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
value chains, and improve the business climate independent currency, with individual central banks.
at national and regional levels. The West Africa While the XOF is fixed against the euro (at a constant
Common Industrial Policy (WACIP) aims to accelerate exchange rate of XOF 655.957/euro), the remaining
the region’s industrialization. The West Africa Quality currencies in the region are governed by flexible
System Programme (WAQSP) seeks to strengthen exchange rates.37 Against the US dollar, though,
the quality infrastructure for greater effectiveness, each currency shows some very moderate volatility,
enhanced competitiveness and better intraregional as suggested in Figure 7, which depicts the daily
and interregional trade participation. The Strategic exchange rate behaviour for three major currencies
Framework for Private Sector Development Strategy encompassing 10 of the West African countries (the
aims to make the private sector a vibrant engine of rest tend to exhibit similar patterns).
economic growth.

36 As of 2019, single windows for cross-border trade existed in five West African countries: Burkina Faso, Niger, Nigeria, Senegal and Togo (source:
https://rammap-swim.wcoomd.org/).
37 In addition to the West African CFA franc (XOF), there is the Central African CFA franc shared by six countries that make up the Economic and
Monetary Community of Central African States (CEMAC), a subset of ECCAS. Both were created in December 1945, with similar profiles (fixed
exchange regime against the euro, same rate of 655.9, with separate governing body – central bank). In exchange for XOF countries depositing
50% of their foreign reserves in the French Treasury, the latter guarantees an unlimited convertibility of the common currencies. The ECOWAS
regional currency project (the ECO) is expected to mark an end to the West African CFA franc. 21
Figure 7: Daily exchange rates of selected West African currencies against the USD (365 days)

700

600

500

400

300

200

100

0
0

20

20

20
.2

.2

.2

.2

.2

.2

.2

.2

.2

2.

2.

2.
22

22

22

22

22

22

22

22

22

.2

.2

.2
1.

2.

3.

4.

5.

6.

7.

8.

9.

10

11

12
Nigerian Naira CFA Franc Cabo Verde Escudo Ghanain Cedi

Note: The XOF is shared among eight countries that make up the WAEMU. The small volatility of the exchange rate appears in the small coefficients
of variation (standard deviation over average), which range between 0.02 and 0.04 in the considered period.

Source: Yahoo Finance.

The process of unifying the region around a common When it comes to trade liberalization, mostly
currency is still under discussion, and the pace is through the removal of both tariffs and non-tariff
marred with a great deal of political uncertainty. It barriers, the formal process has been designed and
involves first a common currency among ECOWAS conducted under the framework of the ECOWAS
non-XOF countries. The latter formed the West Trade Liberalization Scheme (ETLS).39 In order to
African Monetary Zone (WAMZ) in 2000. The benefit from the free trade regime, products and
agreement establishing WAMZ led to the set-up companies have to be registered with national
of the West African Monetary Institute (WAMI) in approvals committees, except enterprises from and
2001, located in Accra, Ghana and tasked with the goods produced in export processing zones or free
establishment of the West African Central Bank zones and any other special economic schemes or
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

(WACB) and the launch of a single monetary unit, customs territory. In 1988–2018, the number of
which will later be merged with the XOF to give birth registrations reached 6,212, and nearly half of them
of the ECOWAS common currency (the Eco). The (48.2%) happened in the last decade. This indicates a
process has been plagued by multiple delays and renewed interest by local, regional and international
missed deadlines, most notably the WAMZ single investors, who are increasingly incentivized by the
monetary unit currency that is yet to be created.38 corresponding trade and business potentials.
However, the political commitments of all member
States suggest that the monetary union is still a The harmonization of customs procedures, under the
significant part of regional integration. From a common external tariff (CET) that entered into force
foreign investor’s perspective, the move to the on 1 January 2015 as part of the ETLS, has brought
Eco spells reduced cross-border transaction costs simplification and clarity across the region, with only
(associated with currency conversion and exchange five tariff bands and a common customs declaration
rate volatility), enhanced market predictability and, form. While the actual implementation of the CET at
it is hoped, increased flows of capital and goods (and national levels is the obligation of member States,
persons). the ECOWAS–WAEMU Joint Committee on CET has
been tasked to first finalize the adjustment of the
CET tariff structure and statistical nomenclature.

38 Since its first introduction in 2003, the regional single currency was postponed several times (2005, 2010, 2014, 2015 and 2020). Discussions
are still ongoing.
22 39 Additional details can be found at http://www.etls.ecowas.int/.
After 2015, the joint committee would provide and increase investment. The various wide-ranging
support and safeguard measures, in addition to protocols pertain to trade in goods, trade in services,
serving as a regional coordinator and monitoring rules and procedures on the settlement of disputes,
body, as countries start implementing the CET. investment, competition, and intellectual property
rights. Effective implementation of the agreements
The strategic design of the ECOWAS CET aims to was scheduled to start in January 2021, for a 10-year
ensure: period for relatively advanced African countries, and
13 years for least developed countries (LDCs).41 It is
ƒ The availability of social goods, such as health and
estimated that AfCFTA will provide valuable and unique
medical products, which are tariff-free (Category 0);
opportunities for businesses operating in a liberalized
ƒ The reduced cost of production, through relatively and unified market that is projected to reach 1.7 billion
cheap input materials not available in the region, consumers by 2030, with a middle class of 600 million
with 5% tariff (Category 1), and those with limited individuals and a cumulative GDP of $3.4 trillion. By
supply, at 10% (Category 2); 2022, intracontinental trade is projected to increase by
ƒ Some protection of domestic industries, namely as much as 52.3%, while trade with the outside world
final goods that are at their ultimate stage of would increase by 6%.42 The many expected benefits
transformation, with a tariff at 20% (Category for trade and investment would profoundly reshape
3) or those that are strategic due to their level the continent’s economies, as they could collectively
of vulnerability and potential for domestic emerge as a key player in the global trade and
production, regional integration, industrialization investment arena.43
and value chain development, taxed at 35%.
Additionally, the WTO Trade Facilitation Agreement
This structure of the CET is expected to promote is expected to further improve trade and economic
investment and business activities by providing fiscal proximity among West African countries and
incentives that guarantee the availability of cheap between the region and the rest of the continent
inputs of foreign origins and some protection to final (and beyond). Corresponding measures, which all
output markets. West African Countries are currently implementing
at various levels, aim to simplify required
Trading across borders also benefits from the paperwork, the modernization of procedures and
ECOWAS Trade Information System (ECOTIS), an the harmonization of customs requirements.
online centralized portal developed by the ECOWAS By addressing the vast amount of red tape that
commission to provide easily accessible, timely and discourage the flow of goods across borders, the
relevant trade related information for informed ensuing reduction in trade costs and the time
business decisions.40 It is an electronic platform needed to export and import has the potential to
designed by the ECOWAS Commission. Using existing improve external market access, in the process
information systems in the region, the portal providing greater opportunities for trade and
provides a unique point of entry to support the investment.44
promotion of intra-regional/continental and global
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
trade and allows investors to fully appreciate the Most member countries are strongly engaged in
region’s trade and business landscape, and gain the process of domesticating regional provisions
valuable insights into existing and potential business for a competitive and conducive business
opportunities. environment, to various degrees. The corresponding
harmonization and unification of national investment
At the continental level, the African Continental policy regimes would add more predictability
Free Trade Area (AfCFTA) will further reduce trade and readability of the overall regional business
barriers, facilitate the free movement of people and environment, as the region is becoming more and
labour and the right of residence and establishment, more accommodating to FDI.

40 Source: https://ecotis.projects.ecowas.int/.
41 The agreements aim at full liberalization for 90% of products, while 7% will need more time and 3% will not be liberalized. During the
implementation process, national implementation committees will come up with a list of products across these three categories.
42 Source: https://unctad.org/system/files/non-official-document/tdb65_2d_pres_AUBramdeo_en.pdf.
43 Source: https://openknowledge.worldbank.org/bitstream/handle/10986/34139/9781464815591.pdf.
44 The costs reduction as a result of trade facilitation is estimated to be equivalent for developing countries, especially in Africa, to a reduction in
tariff by 219%. Source: https://www.wto.org/english/res_e/booksp_e/world_trade_report15_e.pdf. 23
1.10. CONCLUSION
In the face of increased competition to attract Ongoing and planned structural reforms, at both
international businesses, West African countries regional and national levels, are indicative of the
arguably have a strong card to play. Being the first strong political commitment to further improve
region in Africa to effectively embark on economic the conduciveness of the business environment
integration, the region has developed a sufficiently and attract FDI. These individual and collective
conducive and attractive environment for trade efforts have earned countries across the region
and investment. This is largely thanks to its natural the status of best African reformers. To the extent
hub status, strong economic growth, the vibrancy that investors are well aware of all of these positive
and innovative drive of its cities, great market developments, international businesses ready to
potentials, an increasingly peaceful, secure and settle in the region will undoubtedly enjoy great
stable environment, high-quality soft and hard returns, while being part of a collective journey
infrastructure and strong institutional quality towards greater economic and social vibrancy and
(rule of law, control of corruption, and regulations). the emergence of a dominant economic player in
Africa and beyond.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

24
2. MANGO SECTOR IN ECOWAS REGION

2.1. ECOWAS MANGO SECTOR IN A GROWING GLOBAL MARKET

SPREAD OF PRODUCTION AND EXPORT generally produce more than 50 kg/year. Thanks to
IN ECOWAS this robustness, adaptability and high productivity,
mango trees occupy almost all rural and urban areas
Mango trees come from Southern Asia (the Republic of the ECOWAS region.
of India and the Republic of the Union of Myanmar)
and were introduced in West Africa in the nineteenth However, commercial production of mango is not
century. Its expansion started in the coastal regions as common as the presence of mango trees. While
and quickly spread all over the subregion to Sahel most villages in rural areas and many houses and
areas.45 gardens in towns include mango trees for self-
consumption, commercial production of mango
Mango tree can be grown in Sahel areas with less requires dedication of large surfaces of one hectare
than 1,000 mm of rain per year and in subtropical or more, and to carefully care for the trees, the
areas with more than 2,000 mm of rain. Grafted harvest and the logistics of sales after harvest.
trees start producing 3–4 years after plantation
and for several decades thereafter. Many mango Some areas have specialized in commercial
trees older than 100 years continue to produce production (Figure 8). In those areas, hundreds of
mango fruits every year. Mango yields are very farmers invested in commercial mango plantations
high in comparison with other fruit trees; a tree with the two exportable mango varieties: Kent (the
in full production (past 10 years after planting) most famous in the European market) and Keitt.

Figure 8: Mango production region in ECOWAS and Mauritania

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

ECOWAS+MR regions
with no production of mango

ECOWAS+MR regions with


household mango production

ECOWAS+MR Regions with


comercial mango production

Source: Nitidae consultant.

45 J.Y. Rey et al. (2004). ‘The mango in French-speaking West Africa – Historical synthesis’. CIRAD, Fruits. 25
Figure 9: Average annual rainfall in West Africa

Source: Encyclopaedia Britannica, Inc.46, 47

Figure 10: Estimated mango production in West Africa (in thousands of tons)

900

575

1
5
175 150 150 150
100 100
150 25 20 15 10 5 5 5 1
5 575 150
100
10 175
Nigeria

Mali

Guinea

Senegal

Côte d'Ivoire

Niger

Ghana

Burkina Faso

Benin

Sierra Leone

Togo

Guinea-Bissau

Liberia

Cabo Verde

Gambie

25 Mauritania
15 900
20
150 100
5
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Source: Designed on the basis of official data (FAOSTAT, updated on the basis of industry feedback).

As visible in Figures 8 and 9, almost all of the With the wide distribution of mango trees in most
commercial production is concentrated between rural areas of West Africa, estimates of production
the 750 mm and 1500 mm isohyet lines, which are very hard to assess, which leads to very variable
correspond to semi-arid Sahelo–Sudanese climate. results.

With less rain, mango trees can hardly survive and, Based on Food and Agriculture Organization
when they do, they produce very little fruits. With Corporate Statistical Database (FAOSTAT) data, but
more than 1,500 mm, commercial production is correcting some inaccuracy based on discussion
possible, but varieties adapted to humid weather with industry players, we estimated the amplitude
are needed, which are not very popular in the of mango production in West Africa (ECOWAS
international market. and Mauritania) to be a total production of more
2,380,000 tons of fresh fruits in 2020.

46 https://www.britannica.com/science/West-African-monsoon.
26 47 http://www.cartographie.ird.fr/pluvio.html.
Like in many fruit sectors, high yields, a very Despite this situation, domestic marketing to supply
Rural consumption
concentrated production period, large dissemination
(self consumption) urban areas and export to the international market
in the countryside as well as in450000
urban gardens and remain strong. Approximately 20% of ECOWAS
a few areas specialized in commercial production production is marketed, which is equivalent to
lead to a structural overproduction during the main 440,000 tons of fresh fruits traded every year. This
Losses 19%
mango harvest time. As visible below, it is estimated makes mango the second most traded fruit in West
Urban consumption
1495000
that at least half of the production 12%in West Africa is(domestic marketing)
Africa, after banana (sweet and plantain).
300000
not harvested.
63%

4%
ECOWAS PRODUCTION AND EXPORT TRENDS
High losses are observed in household production IN THE WORLD MARKET
2%
and commercial production. In household Fresh exports
production, all the fruits are not harvested, while in 90000
commercial production, fruits with defaults, insect The Food and Agriculture Organization (FAO)
Processing
bites or damage are sorted out during the harvest 50000
estimated world mango production to be 60 million
process. tons in 2019. ECOWAS production is estimated to be
2.38 million tons, accounting for approximately 4%
of global production. As visible in Figure 12, mango
Figure 11: Estimated destination and uses of production is spread across most tropical countries
ECOWAS mango production (average in 2019– around the world, with a high concentration in Asia,
20) and more particularly in India, which has more
than 40% of world production. A few countries with
Rural consumption
(self consumption) Mediterranean weather (particularly the Kingdom
450000
of Spain and the State of Israel) also grow mango,
Losses 19%
Urban consumption mainly as an export crop.
(domestic marketing)
1495000 300000
12%
63%
4%
2% Fresh exports
90000

Processing
50000

Source: Consultant.

Figure 12: Share of world mango production by main producing countries

Share of mango production with detail for top 10 producers and ECOWAS
(Source: Consultant based on FAOSTAT corrected with industry information)

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


Thailand Egypt
2,8% 2,5%
Brazil
3,4%
Pakistan
3,9%
Mexico
4,1% ECOWAS
Rest of the World
25,8%
Nigeria
China
1,5%
4,4%
Mali
4,1% 1,0%
Guinea
Indonesia
0,3%
5,6%
Senegal
0,3%
Côte d'Ivoire
India 0,3%
43,6%
Niger
0,3%
Other ECOWAS
0,5%

Source: Consultant, based on data from the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT), FruiTrop Magazine and
industry.

27
Figure 13: Share of world mango trade by main exporters

Market share of the 10 main exporting origins in the global


mango market with detail for ECOWAS.

Pakistan
5% Ecuador
3%
India Egypt
7% 3%
Viet
Nam ECOWAS
8%

Peru Other suppliers Côte d'Ivoire


10% 12% 2%

5% Senegal
1%
Brazil Mali
11% 1%
Other ECOWAS
1%
Mexico
21%
Thailand
17%

Source: Consultant, based on data from Comtrade, FruiTrop Magazine and industry.

However, in most producing countries, like in West Those main markets are supplied by eight main
Africa, the major part of production is not marketed, origin areas exporting more than 50,000 tons
even in domestic market. In 2019, international of fresh and dried mango every year: Central
trade of mango was only 2 million tons, or 3.3% America (the United Mexican States, the Republic
of the world production. This is why the most of Nicaragua and the Republic of Costa Rica), the
interesting figures to consider before investing in the Kingdom of Thailand, the Republic of Ecuador
mango sector are the traded mango data, and not and the Republic of Peru, India and the Islamic
the total production data. Republic of Pakistan, the Federative Republic of
Brazil, ECOWAS, the Arab Republic of Egypt and the
While ECOWAS production represents less than Republic of Indonesia. Smaller origins like Spain, the
4% of global production, its market share in the Dominican Republic, Israel, the Republic of South
international trade of mango is much bigger, with Africa, the Socialist Republic of Viet Nam and the
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

approximately 5% of the exports of fresh and dry Republic of the Philippines export 10,000–30,000
mango. tons of their own production every year, but much
less in the international market.
In 2019, it was the 7th mango-exporting origin
worldwide. As is visible in Figure 13, the other The global mango market in 2019 accounted for
biggest exporting origins are located in South a little more than 2 million tons of fresh mango
America and Asia. exported from producing countries to consuming
countries. As visible in Figure 15, global mango
The international mango market is organized around trade (excluding re-exportation) grew very fast and
four main poles of consumption, which absorb 80% continuously in the last 20 years, with an average
of the international flow of fresh and dried mango: annual growth of 7.2% (+75,000 tons/year). The
North America (United States of America, and growth of ECOWAS mango exports during the same
Canada), Europe (EU 27 and the United Kingdom period has been slightly higher, with an average pace
of Great Britain and Northern Ireland), the People’s of +8.3%/year (+4,500 tons/year). ECOWAS’ market
Republic of China and the Persian Gulf (the Kingdom share of global trade went up from 4.2% in 1999 to
of Saudi Arabia, the United Arab Emirates, the 5.1% in 2020.
Sultanate of Oman, the Islamic Republic of Iran, the
State of Kuwait, the Kingdom of Bahrein and the
State of Qatar).

28
Figure 14: International mango trade

The international mangomarketin 2019


Main origin, destination and flowsof freshand driedmango
Source: Nitidae

590 430

30
350
380
120 80 50 30
40 220
400 200
140 350
100
150 100 260 20

260 50
200

Leading mango producer Main importation markets


(> 1 million t/year) 200
(NorthAmerica, Europe, China, Persian Gulf - imports in ‘000 tons)
Big mango producer Main exportation origins
(> 200,000 t/year) 200 (Mexico/Guatemala, Thailandia, Peru/Ecuador, India/Pakistan, ECOWAS, Egypt, Indonesia)
-exports in ‘000 tons)
Medium mango producer
120 Main international flowsof mango
(> 50,000 t/year)
(2019 figures - in ‘000 tons)

Source: Consultant, based on Trade Map and FruiTrop Magazine data.

Figure 15: World mango trade and market share of ECOWAS among main exporting countries
(In tons -re-export excluded)
2.000.000

1.750.000

+7%/year

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


1.500.000 Other suppliers

1.250.000 ECOWAS

India
1.000.000
Peru

750.000 Brazil

Thailand
500.000
Mexico
250.000

0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019

Source: Consultant, based on Trade Map.

29
Figure 16: Evolution of global and ECOWAS mango export values

Comparison of the trend of the value of global mango export with


ECOWAS mango exports
(In millions USD -re-export excluded)

3000 180
160
2500
140

ECOWAS Export
Global exports

2000 120
100
1500
80
1000 60
40
500
20
0 0
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Global export from origins ECOWAS
Source: Trade Map.

Another success for ECOWAS is the increase of the As is visible in Figure 17, in the last 10 years, all
value of its exports. Thanks to the development of mango prices tended to increase, but prices of
the mango drying industry (led by Burkina Faso) and dried mango in the international market tended to
the fresh cut industry (led by Ghana), the annual increase faster in the long term than prices of fresh
value of exports grew by an average of 12%/year mango. Local processing is a way to increase value
in 1999–2019 reaching more than $165 million. addition and take advantage of another growing
This growth has been stronger than the growth trend.
of the global mango market, which surpassed
$2,600 billion in 2019 from $300 million in 1999,
equivalent to an average of +11%/year in the period.

Figure 17: Comparison of fresh and dry mango prices (CIF, USA)

(In USD/tons)
11500
10500
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

9500
8500
7500
6500
Dried mango
5500
Fresh Mango
4500
3500
2500
1500
500
01/2015

01/2016
07/2016
01/2017
07/2017
01/2018

01/2019

01/2020
07/2018

07/2019

07/2020
01/2009
07/2009
01/2010
07/2010
01/2011

01/2013
07/2011
01/2012
07/2012

07/2013
01/2014
07/2014

07/2015

Source: Consultant, based on US Customs data.

30
Figure 18: Worldwide mapping of mango production calendar

Map of mango prodution calendar by quarter in main producing and exporting countries
Main harvest period in dark orange –early/late harvest period in light orange

Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4

Q1Q2Q3Q4 Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4

Q1Q2Q3Q4 Q1Q2Q3Q4
Q1Q2Q3Q4
Q1Q2Q3Q4

Source: Consultant – based on expert knowledge, confirmed by FruiTrop Magazine crop calendars and monthly exports reported by customs at
origin.

Finally, it is important to consider the opportunities ECOWAS mango dominates the European market in
for ECOWAS production in terms of production April and May (Figure 19).48 This period corresponds
calendar. As visible in Figure 18, ECOWAS production to a peak of demand for tropical fruits, as the
is mainly concentrated in the second quarter of the domestic autumn fruits (apple and pear) are almost
year, with few competitors on the European market exhausted while the summer fruits (peach, apricot,
during this period, as the other big producers at this strawberries and cherries, etc.) are not yet available.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
time of the year (Mexico and India) are further from
Europe.

48 The map in Figure 18 shows the production period. The table on Spain is for Spanish production (coming after ECOWAS on the EU market). 31
Figure 19: Monthly supply and demand of mango in the EU market

45000

40000

35000
Others
30000 Spain

25000 Mexico
Tons

Dom. Rep
20000
Israel
15000 ECOWAS

10000 Peru

Brazil
5000
Consumption
0

01/2020

07/2020
01/2017

04/2017

07/2017

10/2017

01/2018

01/2019
04/2018

07/2018

10/2018

04/2019

07/2019

10/2019

04/2020
Source: Consultant, based on Eurostat data.

32
2.2. STRATEGIC ACTIVITIES AND SUBSECTORS FOR INVESTMENT

EXPORT OF FRESH MANGO: KEYS TO SUCCESS

The main subsector of the mango value chain in terms Côte d’Ivoire is the leader in the fresh exports of
of value is the export of fresh mango. As described mango in ECOWAS, with approximately 39,000
previously, most of the commercial production of tons exported, representing more than 70% of
fresh mango in ECOWAS countries is destined for its marketed production (Figure 20). Indeed,
fresh consumption. Export of fresh mango out of West Côte d’Ivoire seems specialized in fresh exports
Africa experiences continuous growth due to a dynamic compared to other ECOWAS countries, where this
international demand (+7.2%/year = +75,000 tons/year use represents only 40% (Senegal and Mali), or lower
in the past 20 years). than 10% (Burkina Faso and Ghana).

Figure 20: Shares of fresh exports among mango uses in main exporting countries

Share of fresh export of mango over total marketed production per ECOWAS country in 2020
(source: country profiles)

100 000

90 000

80 000

70 000
in metric tons

60 000

50 000 Other uses

40 000 Fresh exports

30 000

20 000

10 000

-
Côte d'Ivoire Mali Senegal Burkina Faso Ghana

Source: Chart produced by the consultant based on industry interviews and custom data from Trade Map.

The domestic market can be considered as a The first option for an investor interested in export
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
complementary/secondary market, but not as a major of fresh mango is to only invest in trade, buying
opportunity due to the generalized overproduction, existing supply from small and medium farmers
which leads to a market saturation every year, (bigger farmers are generally exporting themselves
especially during harvesting period. However, regional or are already bound by contract to an exporter).
markets can be interesting outlets for off-standard The second is to invest in a big mango plantation
mangoes. Indeed, mango-processing countries to directly manage production. Both options can be
such as Ghana or Burkina Faso import a minor, but combined, which could make the business even more
significant part of Côte d’Ivoire’s exported mangoes profitable and less risky.
(15%), and it can go as high as 50% for Mali.

33
For the export of fresh mango, the key successful ƒ At selection level: Calibration of the mangoes
aspects are quality management, transport time and must be well mastered, with trained and qualified
coordination. buyers who can identify farmers who will deliver a
consistent quality.
Quality is the most challenging aspect. Insect ƒ At handling and packaging level: Beyond
infestations regularly lead to rejections of whole qualification of employees, which is essential
containers of fresh mango, resulting in high losses at this level, the key is the quality and good
for exporters. Spotted, rotten or discoloured maintenance of infrastructure (cold storage, etc.).
mangoes also lead to price reduction after delivery.
Any quality issue will reduce prices for the lot Transport timing and coordination of export with
delivered, as well as for future deliveries: reputation clients as well as with other exporters are another key
about quality consistency is hard to acquire and easy aspect of the fresh mango business. Mango being a
to lose. Like in most fruit sectors, mastering quality perishable product, importers and wholesalers at the
before and during marketing is the main factor of destination aim to regulate the flow to avoid any loss,
success or failure. To mitigate this risk, there are quality decrease or variation of stock. National export
several levels of control that can be monitored: infrastructure and road networks must be adapted and
well maintained. This explains the leading position of
ƒ At harvest level: With qualified employees and
Côte d’Ivoire, which can provide export services at a
adapted tools (if the investor is a stakeholder of a
satisfactory level.
commercial plantation), or with regular technical
assistance to capacitate smallholders (if the
investor only buys from outgrowers).

FOCUS ON A SUCCESS CASE IN FRESH EXPORT OF MANGO: SCS INTERNATIONAL IN MALI

SCS International, established in 2007, is a producer and exporter of fresh mangoes (mainly the Kent
variety) by sea or air to the Netherlands, the French Republic, the Kingdom of Belgium, the Federal
Republic of Germany, the United Kingdom, Spain and the Gabonese Republic and by land to Morocco
between March and June. The firm grew from exporting 22 tons in 2007 to 1,500 tons in 2016.

SCS International’s mango supply comes from producers organized in cooperatives across Sikasso,
Bamako and Koulikoro. The orchards are certified by European auditors who perform annual
inspections. To maintain its certifications, the company trains producers in its supply network in the
reconversion and rejuvenation of their old orchards to increase their yields from 5 tons to 10 tons per
ha. Furthermore, they promote integrated management and good agricultural practices to depend
less on the use of chemical fertilizers. In recent years, the company has raised money and invested in
various projects:
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

ƒ Vertical integration by the acquisition and plantation of 50 ha. With the installation of a drip
irrigation system, the yield is expected to reach up to 40 tons per ha;
ƒ Diversification of exported products with 4 hectares of horticulture, also irrigated by drip irrigation
to enable year-round production of peppers, okra and sweet peppers;
ƒ Integration of packaging production with a facility that began its operations in 2020.

34
MANGO PUREE AND JUICE

The mango puree and juices subsector is a dynamic part of mango market. Indeed, in the leading ECOWAS
country, Mali, several companies achieved success in this market (e.g. CEDIAM and ComaFruits), and a lot of
new small and medium-sized enterprises (SMEs) are created (e.g. Zabbaan Holding).

Figure 21: Share of mango juice and puree among mango uses in main exporting countries

Share of processed mango in puree/juice over total marketed production


per ECOWAS country in 2020
100 000

80 000
in metric tons

60 000
Other uses
40 000
Puree/juice

20 000

-
Mali Burkina Faso Ghana Senegal Côte d'Ivoire

Source: Chart produced by the consultants based on industry interviews and custom data from Trade Map.

The global demand for tropical fruit juices has are raw materials that are considered to be
been increasing in the past few years. The sweet commodities. Second transformation industries are
aromatic taste of mango is a major factor, driving price sensitive and price makers, and consequently
the growth of the mango fruit juice market, and will always seek to buy from the lowest bidder. That
rising health concerns and the amount of nutrition is why diversification towards other mango products
in fruit juices influence market growth. Europe is a can be relevant. Product diversification is not just
major consumer of fruit juices, with more than 20% limited to mango products; it also extends to growing,
consumption of mango juice, of which more than processing and exporting other fruits and vegetables.
50% is consumed in the United Kingdom. Mango Mango production is seasonal (limiting processing
beverages are one of the fastest-growing fruit juice operations to only for four months of the year: April to
categories, outpacing carbonated drinks in terms of July), as being able to process other fruits into puree
volume growth.49 or juices or being able to dry or freeze them is an
opportunity to optimize usage rates. For example, for
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
However, the juice market is very competitive, with years, the CEDIAM processing line was underused at
heavy players such as Pepsi or Coca-Cola flooding approximately 36% of its capacity during the mango
the mass market, and numerous other differentiated season and inoperative during the rest of the year.
companies occupying the various niche markets. In
order to enter this market, several strategies can be
adopted, as well as product diversification, multi- MULTI-CUSTOMER-CENTRIC
customer-centric, food safety first, certifications,
vertical integration and/or productive alliances, A balanced mix of customers will make an
attractive packaging and modern branding. investment more resilient and financially sustainable.
There is no doubt that, for now, the EU is the most
lucrative market to which Malian exporters and
PRODUCT DIVERSIFICATION processors have access. That said, the US market
is just as interesting (thanks to AGOA), but is not
Mango puree and concentrate are sold to second accessible for now, because ECOWAS stakeholders
transformation industries that will turn them into are unable to overcome non-tariff barriers and
finished goods; thus, mango puree and concentrate convince American importers to source from them.

49 Global Mango Juice Market Outlook 2017–2023, Goldstein Research. 35


FOOD SAFETY FIRST control, they should include production in their
investment or become formal offtakers of mango
Food safety is the main non-tariff barrier that planters by signing procurement contracts with
ECOWAS stakeholders fail to overcome. This is them. These contracts should include price fixing
because local authorities are not rigorous in mechanisms and, if possible, fair and foreseeable
enforcing national food safety standards and let prices, quality standards and minimum order
companies get away with violations. Companies that quantity to incentivize farmers to invest in good
seek to be competitive will voluntarily comply with at practices and maintain a high quality of production.
least national standards and at best Hazard Analysis Like in the cotton value chain, offtakers can take it
and Critical Control Points (HACCP) principles. a step further by providing technical assistance and
Health-focused consumers are willing and able (they inputs on credit, to ensure that farmers can increase
often belong to middle-class incomes and higher) to their productivity and improve quality. These
pay more for better-quality products. alliances can be facilitated at the Interprofession
Filière Mangue (IFM) level. Offtakers that have a
certain financial capacity can vertically integrate
CERTIFICATIONS and invest in their own orchards, enabling them to
control the quality of the products from the farm
Certification is a tool that reassures consumers, gate all the way to the consumer’s plate.
who are increasingly concerned about the impact
of their purchases on local communities and on the
environment. Organic, Fairtrade and eco-friendly ATTRACTIVE PACKAGING AND MODERN
certifications are criteria that producers use to MARKETING
differentiate themselves from the competition. In
fact, supermarkets select foreign suppliers on the Food shopping has become an experience for
basis of certifications. They demand norms and households in developed countries; people are
standards be respected to avoid risks of scandals. drawn to attractive food products that are well
packaged and with distinct branding. Storytelling
plays an important role as well; consumers are
VERTICAL INTEGRATION AND/OR PRODUCTIVE more sophisticated and interested in the stories
ALLIANCES of places and people behind the products they
purchase. Attractive packaging, modern branding
In most cases, mango stakeholders are and storytelling are not sufficient – participating
interdependent. Mango processors cannot produce in international exhibitions, festivals, concerts
organic mango juice if they do not have access and sport events will favour direct contact with
to organically grown mangoes. Going forward, if consumers, making it possible to record their needs
processors and exporters want to ensure quality first-hand.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

FOCUS ON A SUCCESS CASE IN MANGO JUICE: BLUE SKIES IN GHANA

The company Blue Skies was created in 1997 by British entrepreneurs. It focuses on the production
and sale of fresh cuts of fruits, dairy-free fruit ice creams, and natural juices, mainly for the
export market (EU), but also for the Ghanaian domestic market. The company is based just outside
Northampton in the UK and has production sites in Ghana, Egypt, South Africa, Brazil, Senegal, Cote
d’Ivoire and the UK.

Its turnover was more than 100 million pounds in 2019, with a profit of 4 million pounds. It employs
more than 4,000 people. Blue Skies sources from more than 150 fruit farmers in Ghana, whom they
provide with technical assistance and a strict 60-day payment policy, which is very appreciated by
farmers. They also created a foundation to support farmers with community projects. Blue Skies
products is GLOBALG.A.P. and LEAF certified, and its processing facility is BRCGS Global Standards for
Food Safety certified.

36
DRIED MANGO

Dried mango is a dynamic subsector with quick growth in specialized ECOWAS countries. Two countries have
become hubs for processed dried mangoes: Burkina Faso and Ghana (Figure 22). They both show strong
sector development, with new companies and facilities opening every year.

Figure 22: Share of dried mango among mango uses in main exporting countries

Share of processed dried mango over total marketed production per ECOWAS country in 2020
(source: country profiles)

100 000
in metric tons

80 000

60 000
Other uses
40 000
Dried exports
20 000

-
Burkina Faso Ghana Mali Senegal Côte d'Ivoire

Source: Chart produced by the consultants based on industry interviews and custom data from Trade Map.

Figure 23: Evolution of US imports of dried mangoes

Evolution of US imports of dried mangoes


(Source: US customs)

16000
14000
12000
in metric tons

10000
8000
6000
4000
2000

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


0
2014 2015 2016 2017 2018 2019 2020

Rest of the world ECOWAS

US Customs.

The dried mango subsector is fuelled by a dynamic similar to the United States, or even more dynamic,
demand, quasi exclusively on the export market, since it shows a steady +5-6% per year evolution.
led by the EU and the United States. Dried mango
imports are steadily increasing in the United States Ghana and Burkina Faso import fresh mango from
(+20% per year up to 2018) even though they the other ECOWAS countries to process and export
reached a plateau in 2018–20 (+2% per year) (Figure them as dried mango in their specific markets: the
23). ECOWAS countries have a very small weight United Kingdom and the Netherlands for Ghana, and
in these US imports. Most ECOWAS dried mango Germany and France for Burkina Faso. Accra and
production is sold to the EU. It is not possible to Bobo-Dioulasso have become clusters for processed
isolate dried from fresh mango in EU import data, dried mangoes thanks to their rapidly improving
but the growth of dried imports is known to be infrastructure and network of processing facilities.

37
The main challenges for dried mango
companies are linked to the high
competition for raw material, high
turnover of qualified employees,
lack of market for lower-quality
products and maintenance of
machinery:
ƒ The shortening of the mango
harvesting season in each
country due to the fruit fly, and
low management of the orchards are
creating a supply stress for processing
facilities. That is why one key to success is to
strengthen supply strategy by developing strong
partnerships with producer cooperatives, as well
as prospecting towards neighbouring countries
with different harvesting periods.
ƒ With the emergence of the dried mango subsector,
a lot of opportunities are appearing for qualified
middle management or technicians. This is
a threat to companies, which can experience Technology
high turnover. Securing human resources with is evolving
incentives and good working conditions can be the quickly in this
only way to mitigate this risk. sector, but the level
of maintenance/repairs
ƒ Regarding the lack of market for the 2nd and 3rd
does not always increase at the same pace. Hence,
quality dried mangoes, the domestic market is
a company must select its machinery with scrutiny,
not yet a solution. Indeed, local consumption of
and be sure to implement best maintenance
such processed products is still very low (less than
routines. Recruitment and continuous training of
5% of production in Burkina Faso) since the local
engineers and technicians is also vital.
populations are not familiar with them. A small
increase in consumption can be considered in urban
One of the difficulties for a new dried mango
areas, but the Nigerian market should be more
company can be the acquisition of appropriate land.
prospected.
The factory’s location must be very well connected
ƒ Finally, the machinery at the processing facilities to main routes so that logistics for procurement and
is key to the success of a dried mango venture. export can be efficient and fluent.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

FOCUS ON A SUCCESS CASE IN EXPORT OF DRIED MANGO: TIMINI SA IN BURKINA FASO

Timini is a joint venture company created in 2014 in Bobo-Dioulasso between Fruiteq SARL (one of
the most experienced exporters of fresh mangoes in Burkina Faso), M-PAK Pty Ltd (one of the largest
producers of dried mangoes in South Africa), and Westfalia Fruit (one of the world’s largest dried
mango and avocado marketers, from South Africa).

Timini is the largest producer of dried mango in Burkina Faso, with two factories and an installed
production capacity of 800 tons. Its turnover exceeds 3 million euro, it employs more than 700 people
and sources more than 18,000 tons of fresh mangoes from more than 2,000 smallholders.

Some of its products are organic and Fairtrade certified, and its factories are BRCGS Global Standards
for Food Safety certified, the most strict industrial quality certification.

38
ORGANIC AND FAIRTRADE MANGO

The large majority of the market for certified mango is the export market, especially for the EU and the
United States. Hence, the observations and recommendations made previously for the fresh mango export
are also, and even more, relevant to certified mangoes.

ORGANIC Among ECOWAS countries, the leader in organic


production is Burkina Faso, whose national certified
The most dynamic market for certified mango is surface is increasing by +40% yearly (Figure 25). In
the organic certification. In Europe, which is the 2nd 2nd position is Côte d’Ivoire, which has a slower, but
main consuming region after North America (40% more constant yearly conversion rate. If we focus
of the total retail sales50), the total organic market on the area certified as organic for mango, Burkina
represented approximately €40 billion in 2019, and Faso is clearly in the lead, with approximately 5,000
is growing by more than 10% yearly.51 Germany ha in 2019. The other countries are far behind, with
and France are leading this trend of consumption 800 ha for Ghana and 1,600 ha for Mali. However,
(Figure 24). Mango is the 2nd most consumed organic the areas vary from one year to another. The most
certified fruit in Europe after banana, with 8% of the striking example is Burkina Faso, which went from
total volume of tropical fruits imported. 10,000 ha in 2018 to 5,000 ha in 2019. Thus,
maintaining the certification is also a tremendous
challenge.

Figure 24: Evolution of organic markets in Europe

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Source: French Agency for Development and Promotion of Organic Farming.

50 Research Institute of Organic Agriculture (FiBL) statistics for 2018.


51 Organic farming and market in the European Union, Agence BIO, 2019. 39
Figure 25: Total certified organic and organic mango acreages in some ECOWAS countries

Evolution of organic certified national land area Organic certified mango area
per ECOWAS country

Area certified in hectares


100 000 12 000
Area certified in ha

Senegal
80 000 10 000
60 000 Mali
8 000
40 000 Ghana
6 000
20 000
4 000 Côte d'Ivoire
-
2 000 Burkina
2015 2016 2017 2018 2019
Faso
-
Burkina Faso Côte d'Ivoire Ghana Mali Senegal 2019

Source: Research Institute of Organic Agriculture (FiBL).

FAIRTRADE are already bound to companies that probably


supported them in the certification process.
The other market for certified products is Fairtrade.
The total Fairtrade market is approximately 10 times For these reasons, investors wanting to target the
smaller than the organic one, representing €10 organic and Fairtrade mango sector must consider
billion in total world retail sales, with a yearly growth investing in farmer organizations identification,
of approximately 8% since 2015.52 Approximately training and contracting, including paying/
62 million tons (without banana) of tropical fruits are prefunding the certification of the cooperative to
produced and sold globally, with mango being in first guarantee at least a part of their procurement.
place. Setting up an outgrowing scheme with small
and medium farmers could be based on existing
The market for certification is clearly interesting farmer organizations already involved in other
and in quick growth, especially for tropical fruits crops commonly associated with mango in the
like mango. Although there is a lack of supply, mango production areas, such as cotton, cashew,
the issue can be avoided by acquiring land and hibiscus and/or grains. Farmer organizations
producing mango on a commercial scale. Investors already structured around the production
should, however, take into account that organic and marketing of other products will often be
production is more complicated than conventional interested in diversifying their activities/crops and
production and entails high technical risks. Investing benefit from a trading/contracting experience. They
in organic mango production needs to rely on highly are generally more efficient than ad hoc farmer
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

skilled technicians/agronomists with experience organizations created for mango production, as their
in organic tree farming. Organic production members are already used to working together and
necessitates fertility management and pest control doing common marketing of their production.
using technical/innovative processes that are not
commonly available or mastered in most mango One of the main keys for success for a company
production areas. that targets the certification market is to partner
with a farmer organization that already has
Aside from organic certification, Fairtrade enough seniority to handle a certification process.
certification is not accessible to company owned Another key for success is to add as much value as
farms, as Fairtrade labels are only intended for small possible to the certified mango products, meaning
and medium independent farmers. that processed products such as dried mango or
puree/juice should be prioritized. Also, note that
The other possibility, which is the most adopted one, demand for certified products is more developed for
is to source mangoes from smallholders. However, processed products.
the availability of certified mangoes in ECOWAS
countries is very low, and most certified producers

52 Fairtrade International, Statista.


40
FOCUS ON A SUCCESS CASE IN CERTIFIED MANGO PRODUCTS: COMPAGNIE MALIENNE DE FRUITS –
COMAFRUITS IN MALI

ComaFruits was created in 2009 by an Italian entrepreneur and a Malian engineer. Today, it runs two
factories, one in Bonoua, Ivory Coast, and one in Selingué, 200 km south of Bamako, in Mali. Their
products are mainly frozen cubes and dried mangoes, but they recently received a capital increase
from a European investment fund to diversify towards juices. Their strategy is to move towards
certified value-added products. They already source from a reliable network of 1,000 smallholders
that they intend to increase to 3,000. Their close relationship with farmer organizations allowed
ComaFruits to develop organic and Fair for Life certification with them. The company supports the
cooperatives in implementing the procedures, and provides technical assistance to farmers to promote
best agricultural practices.

41
2.3. KEY POINTS FOR SUCCESSFUL INVESTMENT

DIVERSIFY PROCUREMENT AND MARKETS

Any investment in the mango sector should While relying on only large farms can be costly and
consider diversification as a key to success. Due to risky, having no big farm owned or contractually
a short production period in all mango production linked to trading/processing companies can limit
areas worldwide, perishability of the fruit and the security of procurement in terms of quality
risks inherent to any agribusiness investment, control and capacity to innovate in cultivation and
the concentration of procurement on one simple harvesting practices. Having a presence throughout
production area or focusing marketing on one single the year in the production areas can lead individual
market are not suitable strategies for the middle farmers to trust a client more and to respect their
and long term. commitments, and diversification is also important
to limit the exposition to risk.
On the production side, it is strategic to work with
large farms and small-scale farmers in outgrowing Export logistics to a particular market can be
schemes. While large farms will ensure a better affected by events and unbalances in the transport
management of pest control and quality during market, affecting sales flow and generating losses.
harvest and post-harvest processes, outgrowing with Having a use or market for rejected mango will
smallholders will enable a reduction in capital and increase the profitability of any investment in the
operational expenditures, spreading the harvesting/ mango sector.
marketing period by weeks and improvement of
weather resilience. So far, export markets out of Africa have been the
leading markets for fresh and processed products. In the
Large farms can also be used as training centres to next decade, ECOWAS is expected to be one of the most
show good practices to smallholder farmers, and the dynamic developing markets, and developing brands
same technicians working on the large farm during the and processed products dedicated to the subregion is
peak of work (cleaning and harvesting time) can play the best way to take advantage of the long-term trends
the role of trainers and technical advisers for small to improve the resilience and profitability of businesses
farmers during the less busy months. based on export.

Figure 26: Diversification strategies in the mango value chain


WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Small Artesanal Toll


Other big farms in processors National processing
farm another companies traders companies EU
region market

Rejected
or defaults mango
Other export
Small Main Fresh
Supply markets
farms Farm Processing and/or and/or
around of raw
mango exporting company processed
main mango
farm
Mango
waste
National
market
Big farm in Small Energy or fertilization
neighbour farms in companies ECOWAS
country neighbour market
country

42 Source: Consultant.
Several experiences, particularly in Burkina Faso INVEST IN QUALITY
and Ghana, showed that valorization of by-product
and rejected fruits by artisanal or semi-industrial Like for any agricultural product, quality
processors located around the main processing management is one of the keys to success in the
facilities can generate competitive ecosystems with mango sector.
a toll processer network, adding value to the main/
biggest activity. With several fruit flies attacking mango in Africa,
quality needs to be preserved from production,
Even if one particular supplier or client seems and with strict controls all along the value chain to
the most adapted to one specific business, it is limit losses during conservation and transport and,
important to always keep in mind that, in risky therefore, containers rejections.
agricultural value chains, it is always better to be
diversified. ƒ NATIONAL STANDARDS (NOT MANDATORY)

Mandatory sector compliances vary depending


on each ECOWAS country. The list of specific
requirements by country can be seen in Figure 27.

Figure 27: National standard for mango trading and processing in ECOWAS countries
Technical regulations
COUNTRY National standard to access international Specifications
market
BENIN No existing and applied standards No technical regulations No specifications
CBF 01-07:2016, NBF
Certification Mark (mango
jam)
CBF 01-11:2016, NBF
Certification Mark (mango
NBF-01-026: 2009; Recommended Code of
BURKINA juice)
Practice NBF 01-0312009; Mango juice No specifications
FASO CBF 01-13:2016, NBF
NBF 01-038-2009; Mango nectar
Certification Mark (dried
mango)
CBF 01-15:2016, NBF
Certification Mark (mango
nectar)

NCV 015:2016 – Standard of Quality for No technical regulations


Mango No health regulations
CABO VERDE NI 163 1993: Specifications for Fresh Mango No specifications

NOR 32: 1989: Fresh Fruit and Vegetables No technical regulations WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Sampling
GAMS ISO 14001: 2004: Environmental
Management System – Requirements with
guidance for use
ISO 22000 GAMS: 2005: Food Safety
Management System – Requirements for
any organization in the food chain
GAMS CAC/RCP 1-1969: Gambian Standard
THE GAMBIA No technical regulations NONE
on Food Hygiene GAMS CODEX STAN
1-1985: Gambian Standard for the Labeling
of Prepackaged Food
GAMS CAC/RCP 44-1995: Code of Practice
for Packaging and Transport of Fresh Fruits
and Vegetables
ECOSTAND Standard for Mangoes

43
NG 02 – 01 – 003/2013/Codex stan.
184–1993 (mangoes) Regulation C/REG.21/11/10
of 26 November 2010 Technical guidelines for good
Specifications harmonizing the structural post-harvest practices and
GUINEA NG 02 – 01 – 012/ 2013: Codex stan. framework and operational good packaging practices for
247–2005 (fruit nectar) rules for plants, animals and export mango developed by
food safety in the ECOWAS PRODEFIMA
NG 02 – 01 – 012/ 2013: Codex stan. area
247–2005 (fruit juice)
ECOWAS STAND (no national standards)
Standard 023:2014 – Fresh mango
Standard 028:2014 – Code of Good Practice Guide on the processing
GUINEA for Organic Products No national technical
procedures of small agrifood
BISSAU regulation
Standard 021:2014 – Fruit juices and Nectars units in Guinea-Bissau, 2015

Standard 029:2014 – Code of Practice for


Organic Products
No national technical
LIBERIA Fresh mango standard being adopted NONE
regulation
MN 02-01/003 Mango – refrigerated Specifications on fresh mango
storage for export.
MN 02-01/005 Fruits & vegetables Specifications for trackers
maturing after refrigerated storage (harvesters)
MN 02-01/031 Fresh fruit and vegetables –
arrangement of parallelepipedic packaging Self-inspection guide
in land transportation vehicles

MALI ECOSTAND standard on mangoes (ECOWAS No technical regulations


harmonized standard)
ECOSTAND 052 General Principles on Food
Hygiene (ECOWAS Standard)
MN02-01/026 fruit juice and nectar
ECOSTAND 021 fruit juice and nectar
(ECOWAS harmonized standard)
No environmental standards
MAURITANIA NONE NONE NONE
NIGER No existing and applied standards No technical regulations No specifications
NIGERIA NOT PROVIDED NOT PROVIDED NOT PROVIDED
Regulation EC 430/2006
CODEX Standard 184 1993 for mango
Decree No. 68–507
General Standard for Labelling Prepackaged
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Foods CODEX STAN 1–1985.


ECOWAS Standard NS ECOSTAND 023:
Decree No. 68–508 SENEGAL Quality specifications
SENEGAL 2014: Mangoes
for MANGO EXPORT
Specifications ISO 22000
Senegalese Standard NS 03-096 – 2009 for
mango juice and nectars
Standard CODEX STAN 247-2005 Codex
General Standard for Juices and Nectars

SIERRA SLS 6: 2014: fruit nectar


No technical regulations NONE
LEONE SLS 63: 2014: fruit juices
TGN ISO 22522: Crop protection equipment
– Farm-level measurement of spraying
distribution for fruit trees and shrubs
TGN ISO 9898: Crop protection equipment –
Test methods for air-blast sprayers for fruit ISO 6660: Mangoes –
TOGO NOT AVAILABLE
shrubs and trees Refrigerated storage

TGN ARS 54: Recommended Hygiene


Practices for Canned Fruits and Vegetables
CXS 160-1987: Standards for mango chutney

Source: Identification of Needs for Strengthening the Quality Infrastructure in the Mango Value Chain. UNIDO, WACOMP 2020
44
ƒ INTERNATIONAL STANDARDS

Export of fresh and processed mango need well as other social and environmental standards are
important investments in quality control to be fully described in the WACOMP report Identification
successful. of Needs for Strengthening the Quality Infrastructure
in the Mango Value Chain. Table 8, extracted
Pricing and ability to negotiate advantageous from this report, summarizes the main voluntary
contractual terms with clients abroad are often standards and certifications for export of fresh and
strongly based on reputation and guarantees of processed mango.
quality of the product delivered.
The highest quality standards lead to the highest
Main quality certifications: GLOBALG.A.P. for fresh value addition. Quality is not only a challenge to
mango, HACCP, ISO 22000 and BRCGS Global access markets, it is also an opportunity to get
Standards for Food Safety for processed products, as premiums.

Table 8: Mango sector: Summary of quality requirements, standards and technical regulations
Technical committees/
Commodity Quality Requirements Standards Technical regulations
Owner
National Standard
SPECIFICATIONS: International Standard Technical Committee
for Fruit and Vegetables: Agriculture of the NONs
Merchantability, labelling, Mango Standard codex OCDE
packaging; pallets stan 184-1993
processing CODEX
ISPM 07; 10 & 15
Best Agricultural GLOBALGAP
Practices, Hygiene and ƒ IFA;
Safety, Traceability, Regulations (EC)
ƒ GRASP; FOOD PLUS UE
Fresh Environment, Health, 178/2002 and
ƒ NURTURE;
mango Social and Worker Safety, RAINFOREST ALLIANCE
ƒ ALBERT HEIN. 852/2004
Maximum pesticide
Residue Limits RAINFOREST ALLIANCE

BSCI
Large distributors and
Health, social and safety FAIR FOR LIFE private organisations in
of workers KAUFLAND SOCIAL Europe
STANDARD SMETA
Regulation (EU)
Organic Farming BIO UE
2018/848
National Standard;
Regulations (EC) CODEX A. ISO
Dried Food Safety HACCP; ISO 22000; FSSC
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
178/2002 and
mango Technical specifications 22000; IFS; BRC UNECE EU
852/2004
DDP 25
National Standard;
HACCP; ISO 22000 Regulations (EC)
Food Safety
Mango juice 178/2002 and CODEX A. ISO
Technical specifications CODEX STAN 149-1985
852/2004
CODEX STAN 161-1989
Regulations (EC)
Mango Food Safety
HACCP ISO 22000 178/2002 and CODEX A. ISO
puree Technical specifications
852/2004
Regulations (EC)
Mango Food Safety
HACCP ISO 22000 178/2002 and CODEX A. ISO
nectar Technical specifications
852/2004

Source: Identification of Needs for Strengthening the Quality Infrastructure in the Mango Value Chain. United Nations Industrial Development
Organization (UNIDO), WACOM programme, May 2020.

45
ƒ FOCUS ON FOOD SAFETY CERTIFICATION53

While food safety certification is not mandatory


under European legislation, most established
European importers will require some type of
food safety certification.

Most European buyers will ask for certification


recognized by the Global Food Safety Initiative
(GFSI).54 For mango puree, the most popular
certification programmes, recognized by the GFSI, For
are: mango
puree
ƒ International Featured Standards (IFS);55
producers
ƒ BRCGS Global Standards for Food Safety;56 that supply the
ƒ Food Safety System Certification fruit juice industry,
(FSSC 22000).57 an important part of the
SGF certification system
This list is not exhaustive and food certification is called International Raw
systems are constantly under development. Material Assurance (IRMA).60 For
Most food safety certification programmes are companies in the fruit juice industry that want
based on existing International Organization for to control the whole supply chain, the ideal situation
Standardization (ISO) standards like ISO 22000.58 would look like this: farmers are GlobalG.A.P.61
certified, fruit processors are IRMA certified and
Although different food safety certification systems juice bottlers are certified by the (International
are based on similar principles, some buyers could Quality Control System (IQCS) for juices and
prefer one system in particular. For example, British nectars).62 IRMA certification is also applicable to
buyers often require BRCGS Global Standards for traders/brokers, transport companies, producers
Food Safety, while IFS is more common for German of semi-finished products and storage facilities, in
retailers. It should also be noted that food safety addition to fruit processors.
certification is only a basis from which to start
exporting to Europe. Serious buyers will usually visit/ A processor with ISO 22000 or BRCGS Global
audit your production facilities within the first few Standards for Food Safety certification will get,
years of your cooperation. on average, a 10%–15% premium in comparison
with the price of a processor that has just the
In the fruit juice industry, the most recent HACCP certification. Organic certification provides
development is SGF certification,59 which is aimed at an average premium of +30% in comparison with
increasing safety, quality and fair competition in the conventional mangoes.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

fruit juice sector through industrial self-regulation.


SGF certifies fruit processing companies, packers Investing in quality provides a strong return on
and bottlers, and traders and brokers for fruit juices, investment, both in the short and middle term. It is
as well as transport companies and cold stores in also the best way to reach new clients/diversify and
almost 60 countries worldwide. to improve negotiating power.

53 Source: Centre for the Promotion of Imports (CBI) (2021). ‘Entering the European market for mango puree’.
54 Source: The Consumer Goods Forum. See http://www.mygfsi.com/.
55 Source: International Featured Standards (IFS). See https://www.ifs-certification.com/index.php/en/.
56 Source: BRCGS. See https://www.brcglobalstandards.com/.
57 Source: Foundation FSSC. See http://www.fssc22000.com/documents/home.xml?lang=en.
58 Source: International Organization for Standardization (ISO). See https://www.iso.org/iso-22000-food-safety-management.html.
59 Source: SGF. See https://www.sgf.org/.
60 Source: https://www.sgf.org/voluntary-control-system/processing.
61 Source: GLOBALG.A.P. See https://www.globalgap.org/uk_en/.
46 62 Source: https://www.sgf.org/voluntary-control-system/bottler.
2.4. REGIONAL INVESTMENT OPPORTUNITIES
The ECOWAS region represents a market of Several mango processors in Mali, Burkina, Ghana
350 million consumers with an average net income and Côte d’Ivoire buy mango in neighbouring
per capita over USD 1,350/year in 201963 and a countries to spread their procurement period.
growing middle class with a purchase power over Senegalese and Ivoirian fresh export companies also
USD 10,000/year. improve their procurement/marketing period by
sourcing mangoes in Mali, Burkina Faso and Ghana.
Given the size of this market, the mango sector As the mango harvest period is slightly different
in the ECOWAS offers a number of regional in each West African country, accessing mango in
opportunities, especially in the trade of traditional several production areas may help to increase the
processed products (dry mango, mango juice, mango procurement period by 15 days to 1 month.
slices) as well as innovative food products valorising
mango as an ingredient or a flavour agent (biscuits, On the commercialization side, several brands
sweets, sausage, ready-to-eat meals, etc.) of mango/fruit juices like Dafani (Burkina Faso),
Ivoirio (Côte d’Ivoire), Comarfuits (Mali) or Présséa
ECOWAS’ middle class is attracted by new (Senegal) have an increased established presence in
products mixing tradition (mango being the most several other West African countries. Most of those
traditional fruit of the region), innovation and brands experience an even faster growth in the
modern packaging. Common packaging and food regional market than in their national markets.
safety standards, as well as free-trading inside
ECOWAS allow food processors located in ECOWAS This is why investments in logistic, processing,
countries to have access to a major and rapidly valorisation of by-products and/or distribution
growing regional market. A growing number of must be thought at the regional scale and not only
food companies producing in one ECOWAS member at the national scale. Building regional brands and
country are exporting to the rest of the zone, using communication centring around the “West African
regional marketing strategies that target the 350 origin” are opportunities to take advantage of a
million consumers in the ECOWAS community. growing and promising trend in a huge regional
market.
As presented in the country profiles below, several
examples of sub-regional procurement and
sub-regional marketing exist in ECOWAS.

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

63 https://data.worldbank.org/indicator/NY.ADJ.NNTY.PC.CD 47
3. COUNTRY PROFILES OF THE FIVE MAIN
MANGO-EXPORTING COUNTRIES IN ECOWAS

3.1. CÔTE D’IVOIRE

COUNTRY OVERVIEW Cote d’Ivoire – key facts


Capital city Abidjan
Cote d’Ivoire, formerly known as the Ivory Coast,
Area 322 463 km2
is a tropical country located in the southern, coastal
Population, total 25.7 million
West African subregion, on the Gulf of Guinea, and
bordered by Mali, Burkina Faso, Liberia, Guinea and 0–14 years 41.7%
Ghana. It is a transition zone between the humid 15–65 years 55.4%
and rainy equatorial climate that characterizes Youth literacy 58.4%
the southern part of the country and the dry (15–24 years)
tropical climate of the north, with average annual Male (%) 63.8%
temperatures of 24°C–28°C. Female (%) 53%
GDP (nominal, $58.8 billion
A single-party rule, which was accompanied by USD billion, 2019)
political and social stability, existed until 1990. GDP growth 7.4%
After the ensuing two decades of multiple political (real, 2014–19)
parties that were marred with violence, the country FDI, inflows $1.0 billion
has become an increasingly stable presidential
Gross domestic private $10.9 billion
democracy. The population is scattered across investment
31 regions or provinces, with important metropolitan
Employment to 55.1%
areas such as Abidjan, the capital, Yamoussoukro, population ratio
Man, San-Pédro or Korhogo dubbed by the (+15years)
World Bank as global, subregional and domestic Employment to 32.8%
connectors.64 The cultural setting is diverse, with population ratio
more than 60 different ethnic and tribal groups, (15–24 years)
the most dominant being the Baoulé (23% of the Exports of goods and 23.5% of GDP (13.9)
population). The country’s openness and hospitality, services (G&S), 2014–19
(USD billion, 2019)
combined with a prosperous economy, have
contributed to attracting a large number of African Main exported products Cocoa; mineral fuels and oils;
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

edible fruit and nuts


immigrant workers, mostly from neighbouring
Guinea, Ghana and Burkina Faso, as well as a strong Imports of G&S, 2014– 22.1% of GDP (13.2)
19 (USD billion, 2019)
community of Lebanese expatriates. Together,
these workers are estimated to represent nearly Main imported products Mineral fuels and oils; cereals;
vehicles
20% of the country’s population, contributing to the
Inflation, 2014–19 0.38% (-1.11%)
vibrancy of the economy and the social life.
(2019)
Bank credit to private 19.6% of GDP
sector
Gov. expenditure $10.2 billion
Gov. revenue $8.3 billion
Total public debt $22.2 billion
Currency XOF (XOF)
Language French (official), Agni, Baoule,
Mande, Senofu

Note: Data for most recent years is shown.


Source: World Bank, International Monetary Fund (IMF), UNCTAD and
Comtrade.

48 64 Throughout the text, ‘subregion’ refers to West Africa (ECOWAS), while ‘region’ refers to the whole continent.
A COMPETITIVE AND INNOVATIVE ECONOMY HIGH-QUALITY INFRASTRUCTURE

The economy is the 118th most competitive economy The Africa Infrastructure Development Index of
in the world, 14th in Africa, and 5th in West Africa, the African Development Bank, headquartered in
according to the 2019 World Economic Forum’s Abidjan, positions the country 21st in Africa, and
Global Competitiveness Index.65 This relatively strong 5th in the subregion for the level of development
position is explained by macroeconomic stability (1st of its infrastructure, with an overall score of
in the subregion), as suggested by the low inflation 24.2/100. This position is mostly driven by the
and low public debt (see key facts table), in addition highly developed ICT and energy infrastructure.
to the quality of its infrastructure network, the Furthermore, the World Bank rates the country’s
extent of ICT adoption, the large market size and logistics system 50th globally, with a score of 3.08/5.
strong business dynamism, in which the country It is the 2nd most performant in Africa, behind South
comes 3rd in the subregion. Africa. It even tops Africa’s ranking when it comes to
the competence and quality of logistics services.
The country ranks 112th globally, 15th in Africa
and 4th in the subregion according to the Global
Innovation Index (co-published by Cornell STRONG INVESTMENT POTENTIALS
University, Institut Européen d’Administration
des Affaires (INSEAD) and the World Intellectual When it comes to the ranking of the Market
Property Organization). The overall index is Potentials Index developed by the Michigan State
21.2/100. The contributing factors to this relatively University’s International Business Center, Cote
strong innovative drive are the extent of market d’Ivoire tops the list in West Africa. It comes 3rd
sophistication (ranked 1st in the subregion), high- in Africa (with the Republic of Tunisia), and 69th
quality institutions (2nd) and the quality of knowledge worldwide. This is mainly due to its relatively large
and technology outputs (3rd). market size, strong market growth and market
intensity, and its relatively low country risk.

STRONG INSTITUTIONS

When it comes to political institutions, the World


Bank ranks the country 139th globally, 19th in Africa
and 8th in West Africa. Regulatory quality and
government effectiveness are the country’s most
advanced component elements, with 4th and 5th
positions in the subregion.

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

65 The most recent editions of this and next rankings are used. 49
INVESTING AND DOING BUSINESS IN COTE All of these procedures can take up to six days,
D’IVOIRE with corresponding fees amounting to XOF 25,000
($45.5).

FASTEST-GROWING ECONOMY IN WEST AFRICA, Additionally, registering property, either for


2ND IN AFRICA commercial or residential use, would take up to 39
days, at a cost averaging 7.1% of the property value.
Cote d’Ivoire grew at an average rate of 7.4% in the Investors considering a construction project typically
last five years, as indicated in the key facts table. obtains a permit within 163 days, with 22 procedures
It is the largest economy, GDP-wise, in French- and fees amounting to 5.9% of the total costs.
speaking West Africa, 3rd in the whole subregion,
behind Nigeria and Ghana, and 8th in Africa. Growth Equality of treatment is guaranteed to all
has been mainly driven by the dynamism of the investors, foreign and national alike, when it comes
manufacturing and services sectors, as well as to all business-related formalities.
the strong performance of the agricultural and
international trade sector. The ongoing pandemic Labour force is relatively large, with 8.5 million
has slowed growth to 1.8% in 2020, down from participants, representing 33.2% of the total
an initially projected rate of 6.7%, according population. Of this active population, employment
to the IMF, as a result of ‘a temporary drop in is 55.1%. Human capital, the productivity level of
consumption, stagnating investment, and slower a typical worker allowed by their actual education
growth in net exports’, as well as some disruption in and health, is estimated at 0.37 by the World Bank.
the supply chains and labour market. It is expected Minimum wage is approximately XOF 60,000 ($109.1)
that robust domestic demand and stable exports per month, mostly paid to low-skilled workers. A
will drive the country’s economic recovery in 2021 typical worker earns between XOF 85,300 ($155.1)
when growth is projected by the IMF to reach 6%. per month (lowest average) and XOF 1,500,000
($2,727.3) (highest average; actual maximum salary is
RELATIVELY LOW COST OF DOING BUSINESS AND higher), depending on the skills and industries.
FRIENDLY ENVIRONMENT
Furthermore, when it comes to foreign labour,
The economy’s dynamism has been a key driver to visa rules are very accommodating, as expatriates
FDI inflows, which topped $1 billion in 2019, the third outside ECOWAS obtain a duration of stay
largest in West Africa. An additional driving factor is corresponding to the business or employment
the conduciveness of its business environment. duration, with no ceiling or limits, while those from
the subregion receive national treatment.
Starting a business in Cote d’Ivoire (outside the
SEZ) requires only four procedures (the 2nd lowest Energy is among the cheapest in the subregion,
in Africa): with XOF 69.3 ($0.12) per kWh of electricity. It can
be obtained within 53 days (approximately half the
(1) Open a bank account and deposit the minimum
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

African average). Two-thirds of the population has


capital at the bank (at least XOF 25,000, or $62,
access to electricity, the supply of which is considered
which corresponds to the minimum for a Société
among the most reliable in Africa, and its tariff index
à Responsabilité Limitée – SARL, or limited liability
company); alternatively, the start-up capital can
is among the most predictable in the continent.
be deposited with a notary against a statement
certifying the deposit; As part of the construction permit procedure, a water
connection request is submitted free of charge to
(2) Register at the one-stop shop (Centre de Promotion the Société de Distribution d’Eau de la Cote d’Ivoire
des Investissements en Cote d’Ivoire – CEPICI), which (SODECI), which undertakes an inspection within
also involves formalities with the commercial a week of receipt of the request. Obtaining water
registrar (Régistre du Commerce et du Crédit usually occurs seven days after the payment of XOF
Immobilier), the tax authority (Direction énérale des 130,000 ($2,363.6) is made. On average, the variable
Impots), and the social security institute (Caisse tariff escalates from $0.53 to $0.73 and $0.86 per
Nationale de Prévoyane Sociale); afterwards, the cubic metre for total monthly consumption thresholds
company can request the publication of the legal of 15, 50 and 150 cubic metres respectively.
notice of incorporation, which is done on the CPICI
website (http://www.cepici.gouv.ci/); When it comes to physical infrastructure, the
(3) Obtain a company seal at any seal maker; country possesses a well-developed road network, the
second-largest port in West Africa, a modern airport
(4) Notify the local tax authority (Centre des Impôts) of
with a national airline carrier (Air Cote d’Ivoire) that
the company’s address.
50 serves all of the major capital cities in the subregion,
and a transnational railway network with more than and an interest rate on loans averaging 7.7%, the
1,260 km of metre-gauge track between Abidjan and banking system is relatively sound and stable, and
Ouagadougou. As part of a modernization project is accommodating when it comes to accompanying
agreed between Cote d’Ivoire and Burkina Faso in July investors, domestic and foreign alike.
2019 (postponed due to the COVID-19 pandemic),
the railway will add significant capacity, going from The credit availability coverage ratio is the largest
800,000 to 5 million tons of freight per year, and in West Africa, with 22% of adults benefitting from
200,000 to 800,000 passengers per year. loans. In addition, the depth of credit information is
greater in Cote d’Ivoire than anywhere else in Africa.
The tax system is also relatively attractive. The
number of payments per year is the lowest in the The system is also open to foreign capital and
subregion (just 25 per year). Overall, businesses transactions, to the extent that international money
are expected to pay total taxes and contributions and capital transfers are relatively free, and FDI com-
that represent 50.1% of profits. Profits are taxed panies (and any other private companies and individu-
at a rate of 8.8%, the 6th lowest in sub-Saharan als) can indeed hold foreign currency bank accounts.
Africa. Payroll taxes are levied at 2.8% for local
employees and 12% for expatriate employees on The fixed exchange rate of the common currency
the total taxable remuneration, which includes (common to eight countries that make up the
salaries and benefits, both monetary and in kind, WAEMU) against the euro is €1 = XOF 655.96. Its
irrespective of the level and skills. Social security fluctuation against the USD reflects that of the euro
contributions are 2%–5% (work injury) to 7.7% against the USD, and in the last five years, it has
(retirement pension). A real estate tax is imposed ranged between XOF 520 (26 January 2018) and
at 1.5% for undeveloped land, 4% on land revenue, XOF 627.6 per USD (16 February 2016).
and 11% on developed land, or 15% when the built
property is used by the company itself, while the The Centre de Promotion des Investissements en Cote
rate is reduced to 4% for unoccupied buildings. All d’Ivoire (CEPICI) is the body in charge of promoting
individual income is pooled and subject to a general investment and the business environment in the
income tax that ranges from 2% (less than XOF 2.2 country. Investors, both national and foreign, can
million or $4,000 per year) to a maximum of 36% also benefit from a host of services and fiscal
(XOF 50 million or $90,909.1). incentives provided by the country’s only special
economic zone (SEZ), located in the city of Grand-
Value-added taxes are 18% for most sales, and Bassam. The Technology Park of Grand Bassam
reduced rates apply to specific products such as hosts companies engaged in biotechnology or
milk, infant food and equipment for solar energy, all ICT, and approval must be obtained from CEPICI.
being taxed at 9%. Incentives include 0% customs duty, 0% VAT rate
and 0% tax on commercial and industrial profits for
Customs duties are governed by the ECOWAS the first five years of operations, followed by a 1%
common external tariff (CET), in place since 1 rate with the possibility of a tax credit.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
January 2015. Imported commodities fall into one
of the five tariff bands: essential social goods, such A new cross-border SEZ is under development,
as medicines (0%); goods of primary necessity, located in Sikasso (Mali), Korhogo (Côte d’Ivoire)
raw goods and capital goods (5%); intermediate and Bobo-Dioulasso (Burkina Faso) – the SKBo
goods and inputs (10%); final consumption goods triangle. It is part of the ECOWAS Cross-Border
or finished goods (20%); and specific goods Initiatives Programme launched in 2005, aimed
for economic development (35%). The CET is to increase cooperation frameworks along intra-
accompanied by various measures aimed at community borders. If operationalized with a clear
protecting some industries and guaranteeing fair legal framework, this uniquely exclusive SEZ will
competition throughout the liberalized subregional provide additional fiscal advantages for domestic
markets. They include safeguard measures, anti- and foreign companies that decide to invest in
dumping measures, anti-subsidy and countervailing prioritized sectors such as agribusiness and mining.
measures, and supplementary protection measures.
Overall, Cote d’Ivoire’s business environment has
The banking and financial system is very matured substantially in the last decade. The
accommodating. It comprises 27 banks of national, economy’s strong dynamism, the increasingly stable
continental and international reach (up to 2018), political and social environment, the friendliness of
a large number of microfinance institutions (some the legal and regulatory framework, and the readily
211 in 2016) and a subregional stock market available high-quality, low-cost inputs are among
(Bourse Régionale des Valeurs Mobilières). With a key factors that make Cote d’Ivoire a favourable
regulatory capital-to-risk weighted asset of 10.9% destination for foreign investment. 51
MANGO IN CÔTE D’IVOIRE: AN OVERVIEW

Côte d’Ivoire is the largest mango exporter in West Africa. The country has built a strong tropical fruit sector,
with exportation of three main fruits: banana, pineapple and mango. In 2020, Abidjan was the only port in
West Africa with a dock dedicated to fruit exportation, with two berths of 350 metres, cold stores, and stocks
of reefers through which 250,000 tons of fresh fruits are exported every year.

Figure 28: Mango production by region in Côte d’Ivoire

12,000 t
Bagoué, Poroand Tchologo region
main area of commercial mango production 5,000 t 75,000 t 37,000 t

Kabadougou and Hambol regions


other areas of commercial mango production
6,000 t
All otherregionsof Côte d’Ivoire
minor production areas

Source: Consultants, based on industry interviews.

Mango cultivation is spread all over the country, among the 20,000 ha of mango plantations
but commercial production is concentrated in the identified in the country are bigger plantations of
northern regions. According to the Interprofessional 50 ha to 350 ha, owned by exporting companies.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Fund for Agricultural Research and Advisory Services Average yields in medium plantations are 7 tons/
(FIRCA), which supports the sector, Ivorian mango ha and yields in exporters’ plantations climb from
production is approximately 150,000 tons, and data 10 tons/ha to 13 tons/ha.
from the industry and the Food Products Marketing
Assistance Office (OCPV) has the marketed With the rapid growth of cashew production in
production at slightly higher than 55,000 tons in northern Côte d’Ivoire from 2010, the plantation of
2020. Quantities of mango marketed in Côte D’Ivoire new mango orchards has experienced a slowdown
experienced a sharp and continuous growth from (more than 50% of mango plots are 20+ years old).
the 1990s to 2016. From 2016, they seem to have Nonetheless, the plantation of new orchards never
stabilized, with a strong decrease in 2020 due to the stopped, and many plantations planted in 2000
COVID-19 crisis, which slowed the logistic of exports are still young and will continue producing high
during the mango season. quantities of mango during the next decades.

In comparison with other West African countries, the The mango season is from March to July and the
average size of a mango plantation is larger. Most of main varieties found in Cote d’Ivoire are Kent, Keitt,
the marketed production is carried out by medium- Amelie and Brooks. The production period is the
sized farmers with plantations of 4–15 hectares. same in all production areas for the same variety,
According to interviews organized during this study, with the exception of Denguélé, where production is
the average size of mango orchards in northern a few weeks later than in other production areas.
Côte d’Ivoire is 10 ha. Approximately 1,000 ha
52
The main variety grown in both the medium and big The main outlets for the mango sector in
plantations is Kent. Keitt and Amélie varieties are Côte d’Ivoire are fresh mango exports, and
also present in most plantations, and the Brooks fresh mango for the national market. Mango
variety is cultivated mainly by farmers selling in the processing remains limited, but is increasing, as
local market. local mango stakeholders agree that the mango
sector development and survival relies on mango
Export and local demands go first for the Kent processing, especially dried mango and juice.
variety. The Brooks variety is cultivated for its late
production, which matches local demand from The fresh mango export campaign goes from early
consumers and processors of dried mango when April to the end of May. Putting aside the strong
supply is scarce. The Brooks variety comes in the decrease in 2020 due to the pandemic (35, 050 tons),
market in July when fruit flies are already very fresh mango exports have been relatively stable in
present: this limits the potential for export, but suits the last years (40,250–40,450 tons/year). European
local market needs. The Keitt variety is making a countries are the main destination (32,000–35,500
comeback in farms with the growth of dried mango tons/year or 80%–85% of total fresh mango export),
sector: its late production ensures that dried mango though exports to this destination are decreasing due
processors will have raw materials when other to quality issues and shipment interceptions at the EU
varieties are scarce. borders.

Table 9: Production and export calendar in Côte d’Ivoire


JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Export season

Production season
Amélie
Varieties

Kent
Keitt
Brooks

Figure 29: Production outlets and quantity of exported mango from Côte d’Ivoire (in tons)

Outlets of the marketed production 2019 Exported mango products 2019

Processing
(dried mango)

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


500 Dried
Processing
Juice mango
(juice)
20 5
Fresh domestic 750
consumption
15 000

Fresh
Fresh exports
39 000
39 000

Source: Consultant, based on data from the Food Products Marketing Assistance Office (OCPV), customs and industry.

53
Figure 30: Evolution of Ivorian mango exports by product (2011–20)

Exports of dry, fresh and fresh cut mango from Côte d'Ivoire by main destinations
(in tons)

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*

To EU27 To rest of Europe (UK, CH, NW, RU, etc.) To rest of the world

Source: Consultants, based on data from the ITC Trade Map.

Meanwhile, fresh mango exports to other West artisanal units remain the majority, and production
African countries have increased from 7,870 tons in is mostly for the international market. The mango
2019 to 8,353 tons in 2020. The main destinations puree/juice sector is small in Côte d’Ivoire and is
are Ghana, Niger, Burkina Faso and Senegal, with divided between industrial processors, reaching
Ghana accounting for the largest share (5,000 tons the international market, and semi-artisanal and
in 2019 and 5,198 tons in 2020 or 63% of export to artisanal processors who sold at the local level.
West African countries). No global production is available for this subsector,
but the biggest companies can export 14–30 tons/
The processing sector remains small in comparison year of juice.
to the fresh mango market. However, mango
processing has gained momentum in Côte d’Ivoire In 2020, diseases and pest pressure have
in the last years, particularly for the dried mango increasingly grown. While fruit flies remain the main
subsector. The dried mango output is still phytosanitary problem, new diseases and pests,
small (295 tons in 2020, 2% of total such as soft nose, mango seed weevil and mango
production), but is increasing fast (+58% bacterial black spot, have started to become
compared to 2019). Small-scale and an issue in some production areas.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

54
MANGO VALUE CHAIN AND STAKEHOLDERS

PRODUCERS DRIED MANGO STAKEHOLDERS

Most mango production is small scale. These producers Dried mango is relatively new in Côte d’Ivoire, as it
are organized in 16 mango cooperatives active in started in 2014 under the influence of the Burkinabè
the production areas. These cooperatives regroup processing industry and with FIRCA’s support. There
approximately 3,050 producers. The last census listed are 19 processing units – six with support from the
305 individual producers. Large-scale commercial public sector (FIRCA) and 13 from private initiatives.
farms are few: there are currently four producer All processing units except one are in the north of
exporters (Ranch du Koba, Vidalkaha, Verger de the country, where exportable mango is cultivated (8
Bandama, and Centre de Séchage de Farako), with in Poro, 5 in Tchologo, and 6 in Bagoué, Kabadougou
acreages of 50–350 ha (average of 300 ha). and Sud-Comoé).

Private units are mainly small-scale and artisanal


EXPORTERS AND PACK HOUSES units, with an annual output of 0.1–2 tons/year.
Drying is done using artisanal ovens, limiting the
There are currently 39 exporting companies working capacity to control the drying process and the
on fresh mango, of which 14 do not have a packing product’s final quality. Some of the private units rely
facility and rely on independent pack houses for their on South African technology. Their output capacity
business. There are currently 14 independent pack remains low. As they rely on foreign technology, with
houses. It is to be noticed that the number of pack no spare parts or technician available locally, and
houses increased rapidly in the last years, as there with frequent breakdowns, they tend to function
were only five pack houses in 2012. Most of them poorly. The last category is processing units with
are located in the Poro (29) and Tchologo region several ovens and technicians. They have the biggest
(9). Pack houses hire an average of 125 workers processing capacity, of 40–80 tons/year, sometimes
(harvest technician and wash-women) during export reaching 100 tons/year.
season. Harvest technicians undertake a first sorting
on the mango plots and manage shipment to the More investors are interested in drying mango, as
conditioning units, where women wash the mango. international demand is good and raw material cost
The Phytosanitary Department of the Ministry of is low.
Agriculture and Rural Development (MINADER)
service deals with quality control on site.
MANGO PUREE/JUICE STAKEHOLDERS
While exports to the EU market are done with 40-foot
reefers, shipments to neighbouring countries are done The mango puree/juice sector is very small in Côte
using 70 kg cardboard boxes or 20 kg racks. Despite d’Ivoire and is divided between industrial processors
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
high losses of quality at arrival, traders usually opt for and semi-artisanal and artisanal processors. There
cardboard boxes, as it is the cheapest. are two industrial processors certified by Côte
d’Ivoire Normalisation (CODINORM), SIPRO-CHIM
Their biggest challenge is access to a cold (Darci mango) and ATOU (Ivorio), which produce
room during the export season. Some exporting several types of fruit juices in 300 ml cans. SIPRO-
companies rely on refrigerated trucks for cold CHIM imports mango puree for its juice, while ATOU
storage, which might push them to stop conditioning buys local fruits. Both companies export their juice
until a refrigerated truck comes from the port. to neighbouring countries (Senegal, Burkina Faso
and Niger). Mango juice export data is not available,
but a company such as ATOU exported 14–39 tons/
year in 2015–20. Some other processing companies
in the juice business are considering investing in
the mango juice sector (Canaan Foods Industries,
Afrique Jus, and ComaFruits).

55
Semi-artisanal and artisanal processors (COFRUNO, STORAGE FACILITIES
Boissons d’Afrik, PURE, and Coopérative COBEKO)
have a limited production that is strictly for the local At the port, all reefers are connected to the
market, as they cannot comply with sanitary norms electricity grid to maintain the appropriate storing
for export. They lack financial and technical means temperature.
to expand their juice production.

TRANSPORTATION NETWORKS
MANGO STONE BUTTER EXTRACTION
Road infrastructure in Côte d’Ivoire is reasonably
Since 2020, there is a new unit for butter extraction good, and fresh mangoes from northern production
from mango stone, used for cosmetics, and 50 tons areas are sent to Abidjan by refrigerated trucks or
of mango stone were bought in 2020. Farm gate via Ferkessédougou by train.
price is XOF15 /kg and the processing unit purchase
price is XOF 5/kg. Abidjan’s autonomous port has a special quay for
fruit export and Abidjan’s international airport,
Félix Houphouët-Boigny, is also equipped with
ORGANIZATIONS infrastructure suitable for fruit export.

Producer cooperatives are grouped in three unions


(UPMACI66, UCPMCI67 and UTMACI68) and one
federation (FEPROMACI69). Exporting companies and
traders have their own organizations (AREXMA70,
OCAB71 and OBAM-CI72) and conditioning units
(UCCMI73). All these organizations are headed by
the Inter-Mangue, the mango inter-profession
association that comprises a producers’ board,
traders’ board and processors’ board.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

66 Union des producteurs de Mangue de Côte d’Ivoire.


67 Union des Coopératives des Producteurs de Mangues de Côte d’Ivoire.
68 Union des Transformateurs de Mangue de Cote d’Ivoire.
69 Fédération des Producteurs de Mangues de Côte d’Ivoire.
70 Association Régionale des Exportateurs de Mangues.
71 Organisation Centrale des Producteurs Exportateurs d’Ananas et de Bananes.
72 Organisation des Producteurs-Exportateurs de bananes, d’Ananas, de Mangues et autres Fruits de Côte d’Ivoire.
56 73 Union des Centres de Conditionnement de Mangues de Côte d’Ivoire.
INVESTING IN MANGO IN CÔTE D’IVOIRE: KEY FIGURES

Input supply Processing


Number of mango plant nurseries in the Share of local processing (on the commercial
country: 1 certified (National Agricultural production): 2.5%
Research Center of Ivory Coast). There are
Main process: Juices for local market
numerous non-certified nurseries, which
are difficult to localize, because they are Number of industrial processing companies:
informal. 1
Number of suppliers of fertilizer/
phytosanitary treatments within the country: Investment indicators
2 (RMG Ghana Ltd and Callivoire)
Cost of land in rural area:
Number of suppliers of organic fertilizers/ XOF 100–850 /m² ($1,800–$15,500/ha)
phytosanitary treatment within the country:
Cost of land in urban area (prefecture): XOF
1 (Éléphant Vert)
2,000–16,500/m2
Number of national manufacturers of ($36,000–$3,000,000/ha)
mango packaging (cartoons and paper kraft
Cost of power: XOF 120/kWh
cardboards, etc.): 1 (Filtisac).
($0,225//kWh)
Cost of unskilled manpower: +/- XOF 60,000
Production /month ($110/month)
Estimated total production: 150,000 tons Cost of skilled manpower: +/- XOF 150,000
/month ($275/month)
Estimated commercial production:
55,000 tons Cost of transportation:
Ferkessédougou–Abidjan: XOF 78–90/kg
Number of commercial mango farms (with
($2,800–$3,300/20’ reefer container)
>1 ha mango orchard): +/- 3,350 farms
Enabling the Business of Agriculture
Average yield of commercial mango farms: 7
(EBA 2019) score and rank: 45.87
tons/ha (small farms) to
(rank 65/101)
12 tons/ha (big farms)
Doing Business (2020) score and rank: 60.7
Farm gate prices (export varieties):
(rank 110/190)
min.: XOF 50/kg; median: XOF110 /kg;
max.: XOF 125 /kg

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


Marketing
Distance from main production area to
airport: 350 km
Distance from main production area to port:
800 km
Number of available platforms/centres
for cleaning/packaging/export: 2
(Ferkessédougou and Abidjan)
Number of exporting companies: 39
Volume of fresh export in 2020:
39,000 tons
Rejection rate in the EU in 2020: 6%

57
INVESTMENT OPPORTUNITIES IN CÔTE INVESTMENT AND MANGO SECTOR SUPPORT
D’IVOIRE’S MANGO SECTOR STRUCTURES AND PROGRAMMES

OPPORTUNITY 1: DRY MANGO PROCESSING The National Agricultural Research Center of


Ivory Coast (CNRA) supports players in the mango
With significant production while local processing is sector by researching biological control products
still relatively undeveloped, Côte d’Ivoire appears to against fruit flies and supporting producers with
be a prime location for the establishment of mango small mango trees to facilitate harvesting and
drying units. With the possibility of processing high yield. Research is also underway to extend the
mangoes rejected for export, there is potential export campaign from three to six months against
to benefit from a clear reduction in the costs of two months and to support the renewal of ageing
collecting and cleaning mangoes. The importance orchards. The CNRA has created a collection of
of the production of pineapple, papaya, banana and 150 varieties, available at their Lataha research
coconut in the country can also make it possible to station 10 km from Korhogo.
diversify the dried fruits and to work throughout the
year. FIRCA,74 through the levies made on the sector,
finances agricultural advisory services, research
and development of the plant, forestry and animal
OPPORTUNITY 2: PACKAGING AND EXPORT OF production sectors. For the mango sector, FIRCA
FRESH MANGO has supported the processing of dried mango by,
among other actions, donating six drying units to six
Thanks to the best fruit export terminal in West producers cooperatives.
Africa located in Abidjan port and excellent road
infrastructure, mango export is a profitable The Péléforo Gon Coulibaly University also provides
investment in Côte d’Ivoire. The origin ‘Côte d’Ivoire’ support to the sector through research on the
is also well appreciated in European markets. Even valuation of mango by-products.
if other exporting companies already work on this
market, there is still room for more mango and fruit The state, through PADFA,75 which is financed by
exporters in Côte d’Ivoire. IFAD76 and OFID,77 supported the establishment
and recognition of the Inter-Mangue, and financially
supported the purchase of products for the phyto
OPPORTUNITY 3: PROCESSING OF FRESH MANGO treatment of the campaign 202078 against the
INTO PUREE AND JUICE mango fruit fly to the amount of XOF 1.7 billion
for 20,000 ha (using trapping technologies Invader
With only two companies involved in the industrial and M3). PADFA plans to support the creation of
juice production, there are still large opportunities seven cost-shared drying units, with the largest
for investors to set up modern juice industries share borne by the operator. It intends to support
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

in Côte d’Ivoire. The diversity of tropical fruits 10 existing packaging units for the renewal of their
available, the high productivity of skilled workers shared-cost technical platform, and the creation
and the overall industrial ecosystem of Côte d’Ivoire of an industrial factory for processing mango
allow for successful investment in juice production. juice, nectar and puree. Other plans include the
Abidjan port’s fruit dock also includes temperature- financing of a research programme for products for
controlled work areas that can be used to guarantee biological use to fight against the fruit fly, and the
a perfect cold chain during the export of frozen georeferencing and measuring of mango plantations
mango puree. in the project area.

74 Fonds interprofessionnel pour la recherche et conseil agricoles.


75 Programme d’appui au développement des filières agricoles (Commodity Value Chain Support Project).
76 International Fund for Agricultural Development.
77 OPEC Fund for International Development.
78 See https://news.abidjan.net/articles/670044/les-producteurs-de-mangues-de-ferkessedougou-se-forment-aux-techniques-de-lutte-contre-
58 les-mouches-des-fruits.
PACIR,79 linked to the Ministry of Commerce, In addition, certain private actors, in particular
Industry, and SME Promotion, is carrying out studies manufacturers and distributors of phytosanitary
to boost the mango processing in Côte d’Ivoire, products, support the sector by providing products
and provides marketing support to the players in (Maxipousse, Vertimec, Callomil, Karmex, Cypercal
the sector. Other non-governmental organizations, and Pyrical, etc.) for the fight against pests, and
such as HortiFresh, supported by the Netherlands, foliar fertilizers (Callifert and others).
provide project support in the agricultural sector and
support the organization of the mango sector. The only subregional cooperation project in
existence to develop the mango sector is the Projet
The Deutsche Gesellschaft für Internationale de lutte contre les mouches de fruits (PLMF project)
Zusammenarbeit’s (GIZ) and the Federation of to control fruit flies in ECOWAS countries. This is a
the German Export Trade (BDEX) support in the project that funded the purchase of fruit fly control
marketing of horticultural products. products for five years in 2015–19 (Bait Success).

Table 10: Investment and mango sector support in Côte d’Ivoire


N° Institution Mandate Contacts Observations
1 FIRCA FIRCA mobilizes resources Tel.: (+225) 07 08 91 25 94
from agricultural sectors, (+225) 07 09 86 63 35
the State and development
partners to finance sector Fax: (+225) 27 22 52 81 81
development programmes. E-mail: info-cdg-fadci@firca.ci
2 Commodity Value Improve post-harvest Mr. Nanou: Support programme to mango
Chain Support activities (packaging, storage, Tel.: (+225) 07 57 79 73 91 sector (among others) funded
Project (PADFA) processing and marketing) of by IFAD
three strategic sectors: rice,
vegetables and mango.
3 PACIR PACIR supports the West Tel.: +225 27 20 30 35 41 Support to new investors
African integration process E-mail: info@pacir.ci
and the integration of Côte
d'Ivoire into subregional and
global trade by adopting
structuring measures in well-
identified key areas.
4 National National centre for agronomic Tel.: (225) 27 23 47 24 24 Improved seeds and plants,
Agricultural research Fax: (225) 27 23 47 24 11 technical research
Research Center
of Ivory Coast E-mail: info@cnra.ci
(CNRA)
5 Phytosanitary It aims to prevent the Tel.: (+225) 27 20 21 43 03 Issuance of phytosanitary

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


Department introduction and spread of minagri.cabinet@agriculture. certificate authorizing the
of the Ministry pests inside and outside the gouv.ci export of mango
of Agriculture country.
and Rural cabminagri@yahoo.fr
Development
(MINADER)
6 Péléforo Gon Innovation for the use of Docteur Soro: Research on the valorization
Coulibaly mango by-products for Tel.: (+225) 05 05 04 79 14 75 of mango by-products (Doctor
University cosmetics, pastry and animal Touré)
feed. Preservation of the pulp Docteur Touré:
for use in the off season. Tel.: (+225) 07 58 37 65 35

79 Programme d’Appui au Commerce et à l’Intégration Régionale. 59


SWOT OF CÔTE D’IVOIRE’S MANGO SECTOR

Figure 31: SWOT of Côte d’Ivoire’s mango sector


Mango production Fresh mango Dried mango Juice

Strengths ƒ Favourable ƒ High demand ƒ Can be stored longer ƒ Long storage


pedoclimatic ƒ Ivorian mango (12 and 18 months), ƒ Appreciated by local
conditions appreciated in good taste, vitamins middle class
ƒ Available nurseries comparison to other and multiple uses
origin ƒ Growing export
ƒ Location and demand
seasonality for EU
market

Weaknesses ƒ No technical ƒ Seasonality and small ƒ Raw material ƒ Raw material


supervision export season (two seasonality seasonality
ƒ Fruit flies and other months) ƒ Limited command of ƒ High investment
diseases ƒ Low worker the drying process costs
ƒ Ageing orchards qualification ƒ No cold room for ƒ Low availability of
ƒ Low yields ƒ Fruit flies storage skilled workers
ƒ Weak value chain ƒ Export concentrated ƒ High investment ƒ Final product with
structure on one market (EU) costs prices too high for
ƒ Lack of technicians lower classes
ƒ Mango processing on
a small part of the and spare parts
country’s production
ƒ Limited knowledge of
the market

Opportunities ƒ Growing international ƒ Low-cost raw ƒ Growing international ƒ Growing local


demand, including material demand consumption from
emerging countries ƒ Good demand and ƒ Low-cost labour middle class
ƒ Growing processing growing ƒ Raw material
sector ƒ Emerging markets available in large
ƒ Increasing number of ƒ Fruit quay quantities
exporting companies
ƒ Working road
infrastructure

Threats ƒ Speculation ƒ Storage facilities ƒ Low-quality final ƒ Final product high


ƒ No treatment against limited product prices
fruit flies ƒ No strict quality ƒ Default due to quality
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

control
ƒ Export delay
ƒ Rigid contract
agreement

60
3.2. SENEGAL

COUNTRY OVERVIEW Senegal – key facts


Capital city Dakar
Senegal, known as the ‘land of hospitality’, Area 192,530 km2
is the westernmost point of mainland Africa. This Population, total 16.3 million
coastal hub stands at a crossroads between Africa,
0–14 years 42.8%
Europe and the Americas. It shares borders with
15–65 years 54.1%
Mauritania, Mali, Guinea, Guinea-Bissau and Gambia.
As part of the Sahel, its climate is semi-arid, mostly Youth literacy 69.5%
(15–24 years)
in the north, although there is a rainy season
between July and October. Senegal is divided into Male 75.6%
14 administrative regions and 45 provinces. Most Female 63.5%
of the 16.3 million Senegalese (70%) live in the GDP (nominal) $23.6 billion
coastal part of the country, with 48% in urban areas. GDP growth (real, 6.4%
Important cities include Dakar, the capital (home 2014–19)
to 23% of the population), Thiès (13.3%), Diourbel FDI, inflows $4.2 million
(11.1%) and Saint-Louis (6.7%). Saint-Louis, and
Gross domestic private $5.8 billion
then Dakar, used to be the economic and political investment
capitals of the French West Africa Colony (Afrique Employment–population 42.7%
Occidentale Francaise). After gaining independence ratio (+15 yrs)
in 1960, the country went on to become a peaceful Employment–population 25.8%
and stable presidential republic, with a renowned ratio (15–24 yrs)
democratic social and political system. The Exports of G&S, 2014– 22.8% GDP (5.4)
country prides itself on being one of the oldest 19 (billion USD, 2019)
and strongest democracies on the continent, with Main exported Mineral fuels and oils; pearls,
a multiparty system starting in 1975, and fair and commodities precious stones and metals;
free presidential elections have led to two peaceful fish and crustaceans
transitions of power in 2000 and 2012. The cultural Imports of G&S, 2014– 37.7% GDP (8.9)
setting is rich and diverse. In addition to French, the 19 (billion USD, 2019)
official language, Senegalese speak 36 languages Main imported Mineral fuels and oils; cereals;
(that are also associated with ethnic groups), Wolof commodities vehicles
being the most widely spoken. Inflation (%) 1.8%
Bank credit to private 29.3%
sector (% GDP)
Govt. expenditure $5.7 billion
Govt. revenue $4.8 billion
Total public debt $15.1 billion WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Currency XOF franc (XOF)
Languages French (official), Wolof, Mandinka,
Jola (Diola), Pular, Serere

Note: Data is for the most recent years.


Source: World Bank; IMF; UNCTAD; Comtrade.

61
A COMPETITIVE AND INNOVATIVE ECONOMY INVESTING AND DOING BUSINESS
IN SENEGAL
Senegal ranked 114th in the 2019 Global
Competitiveness Index, with an overall score of
49.7/100. It is the 10th most competitive economy ONE OF THE FASTEST-GROWING ECONOMIES
in Africa and 3rd in West Africa, largely thanks to its IN AFRICA
strong and historically renowned institutions (86th
worldwide, 8th in Africa and 2nd in the West African The Senegalese economy, with a GDP of $23.6
subregion), its high-quality infrastructure network billion, is the fourth largest in West Africa and the
(2nd), the quality of the health system and the depth 17th across the continent. It has enjoyed a relatively
of its financial system (3rd).80 strong economic growth, averaging 6.4% in 2014–19
(the 3rd highest in the subregion and 4th in Africa).
Moreover, the 2020 Global Innovation Index ranks The services sector continues to be the largest
Senegal the 2nd most innovative economy in contributor to GDP growth and, on the demand
West Africa (11th in Africa, 102nd globally), with a side, investment and exports are the strongest
score of 23.7/100. Its top-ranked technology and drivers of growth. The ongoing COVID-19 pandemic
institutional quality and knowledge outputs and 2nd- reduced growth to 1.1% in 2020, but the economy
ranked market sophistication in the subregion, have is expected to rapidly return to its buoyant growth
contributed to this relatively strong innovative drive. trajectory, with GDP growth projected at 6% in
2021 and a historic 12.2% in 2022 when extraction
of newly discovered gas and oil reserves starts,
FAIRLY GOOD INFRASTRUCTURE QUALITY effectively opening up unparalleled opportunities
for investment, trade, growth and economic
The World Bank’s Logistics Performance Index development.
ranks the country 141st globally, 33rd in Africa
and 10th in the West African subregion, with a
score of 2.25/5. The logistics environment’s most A COMPETITIVE BUSINESS ENVIRONMENT
favourable dimension is the efficiency of the customs
clearance process. The 2020 Africa Infrastructure The country’s business environment has been
Development Index of the African Development greatly improved as a result of approximately 50
Bank ranks it higher, at 15th in Africa, and 4th in West reforms in the last few years. They have resulted, for
Africa, with an overall score of 29.2/100. This is example, in a reduced cost of starting a business,
mainly due to the density and quality of its transport with a paid-in minimum capital requirement of XOF
infrastructure system. 25,000 (less than $50), representing 37% less than
the continental average. The process involves only
four procedures with the one-stop shop (Agence de
GOOD ENVIRONMENT FOR DOING BUSINESS Promotion de l’Investissement et des Grands Travaux
– APIX):
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

In terms of ease of doing business in the country,


(1) Deposit the founding capital with a bank (compte
the World Bank ranks Senegal 123rd worldwide,
de société en formation) or through a public
20th in Africa and 4th in West Africa, with an overall
notary; once the registration is complete, the
score of 59.3/100. While starting a business
account will be liberated;
involves only four procedures (second fewest in
Africa) and takes only six days (second lowest in the (2) Check the availability of the company name;
subregion), the time it takes to comply with border (3) Notarize company by-laws and bank deposit of
and documentary requirements when trading across subscribed capital; the involvement of a notary
borders is the lowest in the subregion (9th in Africa). is required, and he/she can be asked by the
However, Forbes Magazine ranks it higher, as the company to complete additional formalities
100th Best Country for Business in the world, the 12th requested during registration;
in Africa and the 2nd in West Africa.
(4) Register the business at the one-stop shop,
which specifically involves (i) registering the
company bylaws with the tax authority and the
commercial registry (Registre du Commerce
et du Crédit Mobilier – RCCM); (ii) getting the
company identification number (NINEA81); and

80 ‘Subregion’ here means West Africa (ECOWAS), while ‘region’ refers to the African continent as a whole.
62 81 National Identification Number of Companies and Associations.
(iii) registering workers and commencement The railroad network is made up of a cargo railway
of operation with the labour authority. Two between Senegal and Mali, which has been operating
additional procedures are: registering with social since early the 1900s. It comprises 1,287 km,
security (Caisse de Sécurité Sociale – CSS) and the with 641 in Mali, and passengers admitted only
pension fund (L’institution de Prévoyance Retraite on the Dakar–Thiès segment, a passenger train
du Sénégal – IPRES). that provides regular commuter services between
Dakar and Thiès via its suburb (a capacity of more
Obtaining a construction permit generally costs than 4 million passengers per year), and the newly
7.8% of the warehouse value. The latter is estimated developed Train Express Regional, inaugurated in
at XOF 41 million ($74,500). A total of 14 procedures 2019, but not fully operating, and linking Dakar and
are involved and they take 177 days to complete. the new airport (with a capacity of 531 passengers
on its 1st and 2nd classes.
As in all the other business-related formalities,
foreign investors are guaranteed equal treatment The port of Dakar is a major transit hub of
compared to their national and West African subregional scope. It has tanker vessel loading and
counterparts, and visa rules guarantee a duration unloading terminals, and a container terminal with
of stay for expatriates that matches that of the a storage capacity of 3,000 20-foot-equivalent
business or the employment. units. It is also a cereals and fishing port, and has a
dedicated phosphate terminal and a privately run
Labour force is estimated at 4.26 million ship repair facility.
individuals. The country scores 0.42 on the World
Bank’s Human Capital Index (13th highest in Africa, The taxation system includes payroll tax
2nd in the subregion), which indicates the extent (with statutory tax rate at 3%), social security
of labour productivity as a result of education and contributions (10%) and retirement contributions
health. The minimum wage is XOF 89,730 ($170), (8.4%). Additional taxes paid by businesses include
and monthly salaries typically range from an corporate income tax on taxable profits (30%), value-
average of XOF 88,600 ($161.1) to XOF 1,560,000 added taxes (VAT) (18%), local economic contribution
($2,836.4). (15% for rental or 20% on owned properties) and
interest tax (16% on interest income). In total, taxes
Electricity supply is considered the most reliable and contributions made by companies represent
and the tariffs the most transparent in West Africa 44.8% of total profits, and involve 53 payments in a
(3rd in sub-Saharan Africa), according to the latest typical year. Furthermore, personal income tax is 0%
World Bank’s Doing Business survey. It is priced at an (on annual income less than XOF 630,000) to 40%
average of XOF 100.1 ($0.18) per kWh. (more than XOF 13.5 million).

Water is readily available, with an estimated 75% Customs duties follow the ECOWAS common external
of the population having access to at least a basic tariff (CET), which comprises five tariff bands, from
water source (91% in urban areas). The average 0% (essential social goods) to 35% (specific goods
tariff is XOF 419 ($0.76) per cubic metre, with XOF for economic development). Additional measures
372 ($0.68) for household and XOF 639 ($1.2) for to protect vulnerable industries and guarantee fair
commercial use. competition in the liberalized subregion include
safeguard measures, anti-dumping measures,
Infrastructure network in Senegal includes a new anti-subsidy and countervailing measures and
airport (Blaise Diagne International Airport – AIBD), supplementary protection measures.
which replaced the previous, smaller airport. It
opened in December 2017 and is located near the The banking and financial system, under the
town of Diass, 43 km east of Dakar. It is estimated framework of the WAEMU, is relatively well structured,
to accommodate 3 million passengers and handle open, sound and stable, with: (i) almost 30 banks with
50,000 tons of cargo and 80,000 aircraft movements a relatively dense web of local branches, moderate
annually. interest rates on loans (7.6% average), a system-wide
regulatory capital to risk-weighted assets of 13.2%,
The road infrastructure network is estimated at and relatively low net non-performing loans (5.5% of
14,500 km, of which 4,500 km are paved. It has total bank loans); (ii) a greater number of microfinance
been greatly improved in the past decade and a half, institutions; and (iii) a subregional stock exchange
mostly in Dakar, with a toll highway linking with the market with 65 listed companies (as of June 2021),
nearby regions of Thiès and Diourbel. including FDI companies.
Senegal’s banking sector that offers credit to the MANGO IN SENEGAL: AN OVERVIEW
private sector represents 58.7% of GDP, and has
the largest contribution to the economy in the Mango production in Senegal is estimated to be
entire subregion. The openness of the banking and 125,000–130,000 tons. The main production areas
financial system means that foreigners and nationals are Casamance and Niayes (respectively 40% and
alike can maintain foreign currency accounts, 30% of annual production). Mango is also cultivated
and international flows of capitals (including in other regions such as Sine-Saloum (10%), central
remittances and profit transfers) are relatively free. zone (15%) and Saint-Louis (5%).
The exchange rate against the euro is fixed at XOF
655.96, reducing the risk and uncertainty associated It is estimated that the mango sector generates
with unpredictable fluctuations. a direct income to 25,000 people in Senegal.
Smallholders own 70% of mango areas, and these
Incentives for foreign investors include special small-scale orchards average 1–10 ha. Farmers’
economic zones (SEZs). Companies located in one of investment and management of these plots are
the three newly developed SEZs in Diamniadio, Diass minimal. There is an increasing number of commercial
and Sandiara (on the outskirts of Dakar, close to the farms (more than 50 ha) such as D3S, SAFINA/FILFILI,
new airport, and accessible via the recently built toll Hortica, Cayor Fruits and Notto AgroIndustrie, whose
highway and the national road) can enjoy special production is destined for the international market.
fiscal treatment. This includes an exoneration from Their mango production is for the international market.
all income taxes, 15% business tax in case of positive These companies have made investments (irrigation
profit and no tax in case of losses (similarly to newly and mango tree treatment) in order to get the best
established firms since early 2020), as well as no grade for the international fresh mango market,
import or export duties (except the ECOWAS solidarity with some investing in organic production (Notto
tax of 0.5% on imports from third-party countries). AgroIndustrie). There is also an expansion of smaller
commercial farms of 10–50 ha. This production is
Overall, the competitiveness and innovative drive of bought by export companies without plantations, which
the Senegalese economy, the strength and stability provide the farmers with supervision and support to
of the institutional and legal framework, and the produce higher grades.
conduciveness of the business climate contribute to
making the country a viable destination for foreign
investors seeking a favourable destination in Africa.

Figure 32: Mango production by region in Senegal

Thies, Zigunchor and Sedhiou region


main area of commercial mango production

Fatick, Kaolack, Kaffrine and Kolda regions


WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

other areas of commercial mango production

All other regions of Senegal


minor production areas

40,000 t

10,000 t 10,000 t

10,000 t

30,000 t 10,000 t
30,000 t

Source: Consultant, based on industry interviews

64
Table 11: Production and export calendar in Senegal
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Export season

Production season
Niayes
Central
Niayes Sud
Basse
Casamance
Regions

La Moyenne
Casamance
Groundnut
Bassin
North
Petite Côte
South-East

Figure 33: Production outlet and quantity of exported mango from Senegal (in tons)

Outlets of the marketed production 2019 Exported mango products 2019

Processing
Processing (dried
mango) Puree and Dried
(puree
300 juice mango
and juice)
20 10
3,000

Fresh
Fresh
domestic
exports
consumption
20,000
25,000 Fresh
20,000

Source: Consultant, based on industry interviews and customs stats.

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

between dry and rain season. In areas like Niayes, Fresh mango exports are generally concentrated
the dry season lasts nine months and groundwater in 12 weeks, from the second half of May to the
can run low in some places (+20 m), which means first half of August. Fresh mango exports have
that irrigation is needed to compensate drought been growing and reached 15%–16% of the annual
and produce mango. Kent and Keitt are the varieties production in 2018–19 (21,430 and 19,450 tons
most cultivated and sought after, but Tommy Atkins, respectively). In 2020, exports dropped to 15,000
Zill and Valencia Pride varieties are also cultivated in tons due to the pandemic. Eighty-five per cent of
smaller proportion. fresh mango exports is destined for the EU market,
with the remaining 15% sent to neighbouring
Forty companies are active in fresh mango exports, countries (e.g. Morocco and Mauritania). Exportable
of which 10 are producing–exporting companies and mangoes come first from the Niayes region (78% of
30 are just exporters. Hundreds of enterprises are exported mango). Casamance, though a prominent
involved in mango processing, but the majority are production region, only supplies 8%–10% of fresh
small and artisanal SMEs with no employees. mango exported due to the distance from export
infrastructure, and approximately 10% of exported
fresh mango comes from Sine-Saloum.

65
The processing sector is less developed. Processors Dakar is the main national market for fresh mango
are concentrated near the capital, in Dakar, Pakine and mango products. There is great local demand for
and Rufisque, and the majority are small artisanal fresh mango and traders cannot meet it, especially
units. ITA82 and Performance Afrique have supported in the north of the country. Wholesalers focus their
dried mango and a small quantity has been exported supply on the main cities, and remote areas are
to the Swiss Confederation and the United Kingdom. supplied by retailers and local traders. The Kent
There are also small processing units run by women variety is the most sought after by local consumers.
cooperatives (Fruitales, Esteval, and Zena Exotic Fruits
in Casamance) producing juice and jam for the local Fruit fly remains one of the main challenges for
market (supermarkets and airports) and international the sector, as it decreases the exportable season
market. Larger processors are few (such as Agrofruits, and mango quality. Along with good practices to
which produces mango pulp and juice). Processed decrease fruit fly pressure (pruning, weeding and
mango exports have been irregular: 16 tons of mango lesser density of mango plots), local stakeholders are
pulp to the EU in 2016 and 14.5 tons to neighbouring investing in locally available technology to control
countries in 2018, 10.3 tons of dried mango to the EU pests, such as hot water treatment (MAF RODA
in 2018 and 340 kg in 2019, and 1.15 tons of mango AGROBOTIC) and the biopesticide Spinosad.
jam to the EU in 2017. More than 1,400 tons of fresh
mangoes were imported in Senegal in 2020,83 of which
1,150 tons were from Mali.

Figure 34: Evolution of Senegalese mango exports by product in 2011–20

(In tons)

30000

25000

20000

15000

10000

5000

0
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*

To EU27 To rest of Europe To Mauritania To Morocco

Source: Consultants, based on ITC Trade Map data and industry feedback.

82 Institute for Food Technology.


66 83 Based on available customs data, Guinea exports were missing at the time of data compilation.
MANGO VALUE CHAIN AND STAKEHOLDERS FRESH MANGO EXPORTERS

Forty exporting companies are active in Senegal’s


INPUT SUPPLIERS AND SERVICES fresh mango sector, with 10 of them having a
plantation, their own pack house and cold storage. In
Organic inputs: ORGANOVA (fertilizer) and GF120 2020, Cayor Fruit and Safina were the leaders in the
(fruit fly bait) with the name of Spinosad. sector, followed by SEPAM, Blue Skies and SANEPRO.
The biggest companies (Cayor Fruits, and SAFINA
Packaging: Pallets treated with NIMP 15 are available SA) have an annual turnover of XOF 800–900 million.
from the Groupe Diakhaté Palettes SARL and MBAO- Other exporting companies have an annual turnover
Bois, and FUMOA produces pallets from broken ones of XOF 200–250 million and the smallest an annual
(XOF 3,500/unit). turnover of XOF 10–50 million. Exporting companies
are often certified according to the international
Treatment: Hot water treatment against fruit fly is market demand (GLOBALG.A.P, bio certification,
available locally through MAF RODA AGROBOTIC. SMETA, Tesco, Fairtrade, and Rainforest Alliance).
Approximately 50% of their production is sent to the
international market (especially the EU market), with
PRODUCERS the remaining production sold to local processors
and other exporters.
Three categories of mango producers exist in
Senegal: The Feltiplex collective pack house, managed by
Fondation Origine Sénégal/Fruits & Légumes (FOS/
ƒ Commercial orchards are managed by
FL) in Niayes, plays a big role in fresh mango export,
companies (Safina, Hortica Sénégal, Domaine
as 50% of fresh mango exports go through this facility.
Agricole de Nema, Agullo Sénégal, Notto
The packing facility of the Fédération des Producteurs
AgroIndustrie, Cayor Fruits, and CADA Sarl).
Acreage is more than 50 ha of mango trees and Maraîchers de la Zone des Niayes (FPMN) is also
density is 400–500 mango trees per hectare, with available for exporting companies and have been used
production focused on Kent and Keitt varieties. by some of them in recent years.
The cultivation method is similar to those of South
Africa and Israel. The mango plots are irrigated Quality is an important issue for these stakeholders.
and regularly maintained, including phytosanitary Available fresh product can present a high
treatments, and yields reach 20–40 tons/ha. Their heterogeneity and pests, especially fruit flies, have
production is mainly for export and they have a significant impact on the product quality and
their own pack house and cold storage facilities. increase risk of interception on the EU market.
A few are certified organic (Notto AgroIndustrie) Approximately 25% of mangoes are rejected
and most are certified with other international during sorting in conditioning centres. Moreover,
standards (GLOBALG.A.P., Sedex Members Ethical fruit flies shrink the exportable mango season.
Trade Audit, Tesco Nurture Certification and Other issues are the availability of reefers and
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Rainforest Alliance). some companies continue to lose shipments due
ƒ Intermediary orchards have a mango acreage to the lack of available reefers, although some
of 10–50 ha. This model is growing in Senegal, as exporters can invest in their own reefers or stock
fresh mango exporters without mango plantations them before the season starts. The lack of finance
rely on them for supply. These producers tend prevents some exporting companies upgrading
to respect good cultivation practices and often their packing equipment and accessing certification.
receive supervision and support from exporters. Diversification and professionalization of enterprise
Some of these producers can be certified organic if management also need to be considered for some of
their exporting partner needs it. these companies.
ƒ Small-scale orchards (1–10 ha) are the most
Many exporters need to upgrade their cleaning and
common (70% of national mango acreage).
conditioning line and invest in cold storage. However,
These producers undertake few investments in
many have difficulties to access finance, as they are
their mango plots (no inputs, no pruning and no
not used to creating business plans and dealing with
irrigation), and the lack of orchard maintenance
investors and banks and, though profitability is good
makes less than 10% of their production suited for
exportation. (10%–20%), it is concentrated in time (trade season),
making capital constitution and loan repayment
hard. Only exporters with diversification strategies
(producers–exporters) manage to access funds. It

67
remains more profitable for investors to invest in a the size of the plant and facilities (it usually ranges
pack house, rather than in export, or in commercial between XOF 20 million and 1 billion. The biggest
plantations oriented towards export. company involved is Agrofruits (group SIAGRO/
Kirene), which produces mango juice and aseptic
Sorting costs for exporting companies are high and mango pulp. Agrofruits has an annual turnover of
low homogeneity of exported mango leads to lower XOF 500 million and produced up to 2,000 tons of
prices and rejection at the borders of importing mango pulp in 2018. The mango pulp is mainly used
countries. One solution is large commercial orchards for juice confection for the local market, though
managed professionally by cooperatives. some quantities have also been exported (the
Republic of Angola). Processing companies are more
Fruit flies are one of the important issues affecting active in Casamance than in the central regions. The
mango quality. In order to comply with EU rules average use of mango by processing unit is 2.3 tons/
on treatment before conditioning (fumigation or year, with an important disparity between mango
hot water), investors have distributed treatment producing areas: 0.5 tons/year in Niayes and 2.9
units against fruit flies. Total costs of the operation tons/year in Casamance. Cost of the raw material is
were XOF 38,000,000. Notto AgroIndustrie has, for lower in Casamance due to the production surplus
example, installed a small hot water treatment unit and limited interest of the fresh mango exporting
in its packaging plant. sector. The pulp production was estimated at 617
tons in 2019, and production is mainly for the
The European Union has revisited its phytosanitary domestic juice market, with export reaching 14 tons
regulations. On 14 December 2019, a new in 2019. However, there is a growing demand for
phytosanitary regulation (EU 2016/2031) entered mango pulp, notably from other ECOWAS countries,
into force. It introduces rules to prevent the which can be an opportunity for the Senegalese
introduction and spread of pests and diseases in processing sector.
the EU. This approach is much more proactive and
will affect the European sector, as well as imports Dried mango processing is little developed in
from third countries outside the EU. The new Senegal, although some processing units have
regime includes new requirements covering the semi-industrial standards. While local consumption
export of mangoes to prevent the introduction of is unknown, dried mango exports reached 10 tons
non-European fruit flies (Tephritidae). The new rules and 340 kg in 2019 and 2020 respectively. However,
stipulate certain conditions that exporting countries some international companies (Biovision Senegal,
must meet before mango exports are allowed. and Trading Forex) are investing, showing that there
Some of these conditions refer to the International are some perspectives to develop this segment for
Standards for Phytosanitary Measures (ISPM). The the international market.
ISPMs are developed by the International Plant
Protection Convention of the Food and Agriculture Small, local artisanal processing units also produce
Organization of the United Nations (FAO) and are mango jam for the local markets, with small batches
recognized by the WTO Sanitary and Phytosanitary going to the export market.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Agreement. Exporting countries should refer to


the relevant ISPMs in order to fully understand and
comply with EU regulatory requirements. Within the WHOLESALERS
framework of risk management, the EU recommends
that exporting states and companies consider Local wholesalers play a key role in aggregating and
fumigation or hot water treatment of mangoes in distributing mango production across Senegal. The
packaging. main destinations are Dakar and other big cities.
Mango is less supplied to remote areas (northern
parts of the country) due to high losses during
PROCESSING SECTOR transportation, and only small traders and retailers
are willing to supply this market. Local wholesalers
Senegal’s mango processing sector is quite small. sell first Kent and Boukodiékhal varieties. Purchases
The main processing regions are Dakar, Casamance and transportation in truck is done in 40–70 kg
and Thiès, with most of the processors in Dakar. cardboard or basket, and 80% of wholesalers store
fresh mango in open air. Only 4% of wholesalers
Currently, approximately 10 large processing have a cold room for storage, and local trade is
companies are active in Senegal, focusing on mango done in 20 kg racks or recycled cardboard. Of small
pulp and juice. The level of investment required for a mango traders and retailers in cities, 90% are
processing company remains variable, depending on women.

68
RETAILERS Senegal is a member of the l’Alliance Régionale de
la Mangue Ouest (ARMAO), which recommended
Supermarkets procure from commercial farms country members to establish their own national
or more equipped wholesalers such as Senfresh. inter profession. To this effect, the Interprofession
They are supplied once a week, mostly with the des Acteurs de la Mangue au Sénégal (IAMS) was
Kent variety, and they purchase in 20 kg racks. established in 2019 with the support of USAID.
Supermarket sales are mainly during the rainy
season and Ramadan. Most sales of fresh mango
are on local markets, street and road sales. Varieties INFRASTRUCTURE
sold depend on availability, but consumers prefer
Boukodiékhal, Kent and Keitt varieties. The port has limited capacities for fresh fruit
storage and no fruit quay is planned for the new
Ndayane port. Transport costs are high due to bad
ORGANIZATIONS IN THE VALUE CHAIN road infrastructure and the quasi-monopolistic
position of SDV-Bolloré regarding exports. SDV-
Mango producers are often part of producers’ Bolloré has dedicated trains and infrastructures
organizations and cooperatives. Some of them for the mango season, but the lack of reefers has
are in larger networks, such as the Fédération des caused massive losses for a number of exporters,
Agropasteurs de Diender (FAPD) or the Fédération and 40-foot reefers (21 tons of mango) cost €4,500–
Nationale pour l’Agriculture Biologique (FENAB), €6,000.
which supports organic production in Senegal.
The Organisation Nationale des Producteurs Fresh mango exports from Casamance are generally
Exportateurs de Fruits et Légumes du Sénégal transported to Dakar in refrigerated trucks and
(ONAPES) and the Sénégalaise d’Exportation de potted there. Potting directly in Casamance
Produits Agricoles et de Services (SEPAS) is a (Ziguichor) is rarely an option, as there is
grouping of producers–exporters, and La Fédération no regular service at the Ziguichor port
des Professionnelles de l’Agro-Alimentaire and a reefer round trip from or to
(FP2A) and the Coopérative Agroalimentaire Casamance is very costly.
de Casamance (CAC gathers some of the
processors active in the mango sector.

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

69
INVESTING IN MANGO IN SENEGAL: KEY FIGURES

Input supply Processing


Number of mango plant nurseries within the Share of local processing (on commercial
country: Approximately 300 production): 7%
Number of suppliers of fertilizer/ Main process: Juices for local market
phytosanitary treatments within the country:
Number of industrial processing companies:
500 agribusinesses
1884
Number of suppliers of organic fertilizers/
phytosanitary treatment within the country:
20 companies
Investment indicators
Cost of land in rural area: XOF 500,000
Number of national manufacturers of
($910) per hectare
mango packaging (cartoons and paper kraft
cardboards, etc.): 5 companies Cost of land in urban area (prefecture): XOF
2,500,000 ($4,550) per hectare
Cost of land in industrial zone in Dakar: XOF
Production 250,000,000 ($450,000) per hectare
Estimated total production: 130,000 tons
Cost of power: XOF 144 ($0.26) per kWh
Estimated commercial production: 50,000
Cost of unskilled workforce: XOF 50,000
tons
($90) per month
Number of commercial mango farms (with
Cost of skilled workforce: XOF 120,000
>1 ha mango orchard): +/- 15,000 farms
($220) per month
Average yield of commercial mango farms:
Cost of transportation: Niayes–Dakar: XOF
5 tons/ha
9/kg ($350/20’ reefer)
Farm gate prices (export varieties):
Enabling Business in Agriculture (EBA 2019)
Min.: XOF 100/kg; median: XOF 125/kg;
score and rank: 43.98 (rank 79/101)
max.: XOF 175/kg
Doing Business (2020) score: 59.3 (rank
123/190)
Marketing
Distance from main production area to
airport: 50 km
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Distance from main production area to port:


100 km
Number of available platforms/centres for
cleaning/packaging/export: 15
Number of exporting companies: 30
Volume of fresh export in 2020: 20,000 tons
Rejection rate in the EU in 2020: 7%

84 Processing companies: Agrofruits, Baobab des Saveurs, Biosene, Blue Skies Sénégal, Buur Sine International, Casa Technologie Alimentaires,
Coopérative Agroalimetaire de Casamance, Domaines Agricoles de Néma, Esteval, Fruitales SARL, GIE des Femmes de Ndame Lô, Maria
70 Distribution, Waare Productions, Marie Diallo Laboratoires, Pronat SARL, and Zena Exotic Fruits.
INVESTMENT OPPORTUNITIES IN SENEGAL’S INVESTMENT AND MANGO SECTOR SUPPORT
MANGO SECTOR STRUCTURE AND PROGRAMMES

OPPORTUNITY 1: SERVICE PROVIDING TO MANGO The establishment of partnerships between research


SECTOR organizations and economic operators is an essential
element for the development of a sustainable and
The rapid growth of the Senegalese mango sector quality exportable product offer. The importance
creates a strong demand for modern services such of research and development activities has been
as nurseries, watering systems, grafting, pruning and highlighted in several national reviews of green
tree care services. In addition to the mango value exports conducted by UNCTAD (UNCTAD, 2017 &
chain, those services can be sold to Senegal’s very 2018).
dynamic horticultural sector at large.
In Senegal, the Institut de Technologie Alimentaire’s
(ITA’s) work contributes to the improvement of the
OPPORTUNITY 2: MANGO JUICE PROCESSING IN level of valorization of local productions. The ITA is
CASAMANCE engaged in studying local mango varieties in order to
develop solutions adapted to the production of pulp,
The new South Agro-Industrial Processing Zone dried mango and jam. These varieties are currently
Project south of Ziguinchor85 aims to host fruit neither exported nor valorized, which contributes to
processing plants and target particularly the mango the sector’s high losses. In addition to its economic
value chain. Access to a diversity of tropical fruits potential, the valorization of an increased number of
(mango, papaya, pineapple and coconut, among mango varieties could contribute to the preservation
others), with low prices due to region’s isolation, of biodiversity while extending the operating
make this agribusiness zone perfect to start or periods of processing units. To this end, the ITA
diversify a juice processing business. Improving has developed more than 10 products from mango
infrastructure of the port of Ziguinchor will also be (puree, compote, jam, marmalade, syrup, natural
an important advantage for the first investors into dried mango, semi-preserved dried mango, mango
this new Agropole. leather, mango vinegar, mango slices in syrup,
chutney, nectar and drink).

OPPORTUNITY 3: TEMPERATURE CONTROLLED The ITA is working on five local mango varieties
INFRASTRUCTURES FOR EXPORT OF FRESH and the initial research results are promising.
MANGO The research focuses on the physical–chemical,
nutritional and aromatic characterization and
The growing exports of mangoes and more the technological aptitude of these varieties for
generally of Senegalese horticultural products is processing. This highlights the increasing investment
leading to a growing demand for temperature- potential across the various segments of the mango
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
controlled infrastructures and logistics. Providing sector in Senegal.
transport, storage and processing facilities under
controlled temperatures provides strong investment
opportunities to attract mango as well as other
fruits and vegetable exporters. Including a cold
chain linkage between infrastructures close to the
new port of Dakar-Ndayane and the main fruit and
vegetable production regions (Niayes, Sine Saloum
and Casamance) would take advantage of the
birth of the new el dorado of fruit and vegetable
production in West Africa.

85 More information available on the investment incentive and available facilities: www.aprosi.sn. 71
Table 12: Investment and mango sector support in Senegal
Contact person and telephone
Organization Mandate
number(+221)
L'Agence de Développement et Agency supporting SMEs Mbaye Diouf
d'Encadrement des Petites et Moyennes Tel.: 775380551
Entreprises (ADEPME)

Agence Senegalaise de Promotion des Agency supporting export from Senegal Ndiassé Ngom
Exportations (ASEPEX) Tel.: 773605596
Pape Dieng
Tel.: 338692021

Bureau de Mise à Niveau (BMN) Support to innovation Cheikh Tidiane Faye


Tel.: 776313680

Délégation à l'Entreprenariat Rapide des Support to initiatives with job creation Pape Jean
Femmes et des Jeunes (DER- F/J) for youth and women Tel.: 338592200

Direction de l'Horticulture (DHORT) Ministry department in charge Macoumba Diouf


of support and regulation of the Tel.: 776394091
horticulture sector

Direction de la Protection des Végétaux Ministry department in charge of pest Abdoulaye Ndiaye
(DPV) control Tel.: 776111175

Directions Régionales de Développement Ministry department in charge of Casimir Sambou


Rural (DRDR) Ziguinchor support to rural development Tel.: 775775008

Fonds National de Développement Agro- Fund supporting project in agribusiness Jean Charles Faye
Sylvo-Pastoral (FNDASP) Tel.: 777408310

Fondation Origine Sénégal – Fruits et Foundation supporting fruit sector Pape Amadou Sidibé
Légumes (FOS-FL) Tel.: 338201959

GIZ German cooperation supporting mango Karim Tall


sector Tel.: 338604252

United States Agency for International American cooperation supporting Mamadou Diop
Development (USAID)/Naforé mango sector Tel.: 771857239

Locafrique Main bank financing SMEs in Ibrahima Diakhoumpa


agribusiness in Senegal Tel.: 776304259

La Banque Agricole Main bank financing agribusiness in Cheikh Ndiaye


WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Senegal Tel.: 77 3332487

Institut de Technologie Alimentaire Public institute in charge of technical Nafissatou Diop


innovation for food processing Tel.: 776359464

Direction de l’Environnement et des Ministry department in charge of Cheikh Fofana


Etablissements Classés environment standards Tel.: 776493468

72
SWOT OF SENEGAL’S MANGO SECTOR

Senegal’s mango sector


Mango production Fresh mango export Dried mango Pulp/juice

Strengths ƒ Production ƒ Existing conditioning ƒ Local variety in ƒ All-year availability of


period delayed in centres Casamance (Bodian, aseptic bag
comparison to other ƒ Existing certified Diourour)
producing countries analysis laboratory ƒ Positive experience
ƒ Important part of ƒ Senegalese mango from some individual
orchard managed appreciated in the entrepreneurs
without chemicals international market ƒ Good all-year
ƒ Existing cooperation ƒ Favourable export conservation
between producers window
and exporters
ƒ Existing referential
and common
specification in the
sector

Weaknesses ƒ Old orchards (35 ƒ High farm gate prices ƒ Low level of ƒ Lack of skilled
years old on average) ƒ High losses in production and workers
ƒ Most orchards poorly conditioning centres consumption locally
maintained ƒ High logistical ƒ Low valorization of
ƒ High losses costs in Ziguinchor sub-product
ƒ Low level of (Africa Express Line ƒ Kent most used
certification monopoly)
ƒ No market knowledge ƒ Low subregional
connections

Opportunities ƒ Growing demand for ƒ Growing organic ƒ Existing innovation ƒ Potential to create
fresh mango product demand, not for processing new product
ƒ Growing pulp satisfied at importer and sub-product ƒ Existing innovation
production level valorization for processing
ƒ Growing cosmetic and sub-product
industry in Senegal valorization
and international ƒ Growing cosmetic
demand for natural industry in Senegal
ingredients and international
demand for natural
ingredients

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


Threats ƒ Land pressure ƒ Rejection ƒ Technologies badly ƒ High prices
ƒ Fruit flies used and costly
(no stocks and bad
quality)

73
3.3. MALI

COUNTRY OVERVIEW Mali – key facts


Capital city Bamako
Mali is a large territory located in the heart of West Area 1,2 million km2
Africa, sharing 7,243 km of land boundaries with Population, total 19.7 million
seven countries. Approximately 65% of Mali’s land
0–14 years 47.3%
area is desert or semi-desert, corresponding with a
15–65 years 50.2%
hot and dry climate, negligible rainfall in most of the
country and frequent droughts. The Niger River, with Youth literacy 50.1%
(15–24 years)
1,693 km in Mali, provides a large and fertile inland
delta, and is rightly considered as the country’s Male 57.8%
lifeblood for being a valuable source of drinking Female 43.4%
water, irrigation, as well as transportation and food. GDP, nominal $17.5 billion
GDP growth, real 5.2%
Mali had an influential role in shaping the (2014–19)
subregional history and culture. Starting with a FDI, inflows $494 million
small Malinke kingdom around the upper areas
Gross domestic private $3.9 billion
of the Niger River, it developed into a rich and investment
prosperous Malian empire between 1240 and Employment to 65.7%
1645, which controlled the trans-Saharan trade in population ratio
gold, salt, slaves and other commodities. It spread (+15years)
its language, laws, faith and customs to almost Employment to 51.2%
the whole subregion. This provides a background population ratio
for a rich, diverse and open culture, with various (15–24 years)
renowned historical sites considered as part of world Exports of G&S, 23% of GDP (4.03)
heritage (such as Timbuktu and Gao). The richness 2014–19 (billion USD,
2019)
of the multicultural setting also shows in the many
Main products Pearls, precious stones and
local languages spoken in the country, such as
metals; cotton; live animals and
Manding, Soninke, Bomu, Bozo, Dogon, Fula and animal products
Senufu, all of which consist of more than 60 dialects;
Imports of G&S, 2014– 34.2% of GDP (5.98)
French remains the official language. 19 (billion USD, 2019)
Main products Mineral fuels and oils; vehicles;
Approximately 44% of the 20.7 million Malians live electrical machinery and
in urban areas, mostly in the capital cities of the equipment
eight regions and the capital district of Bamako. Inflation -1.7%
Other major cities include Segou, Sikasso, Kayes, Bank credit to private 24.2% of GDP
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Kidal and Mopti, mostly located in the south-west. sector


Govt. expenditure $4 billion
Since the early 1990s, Mali has embraced a
Govt. revenue $3.4 billion
democratic presidential political system. A national
Total public debt $7.1 billion
conference in 1991 gave the country a constitution,
a charter for political parties that can be formed Currency CFA franc (XOF)
freely, and an electoral code, all of which form the Languages French (official), Manding,
guiding principles of the political and governance Soninke, Bomu, Bozo, Dogon, Fula
and Senufu, etc.
framework of a semi-presidential representative
democratic republic. Note: Data from the most recent years is shown.
Source: World Bank, IMF, UNCTAD and Comtrade.

74
MALI STANDING IN THE AFRICAN AND BEST ENVIRONMENT FOR CROSS-BORDER
GLOBAL CONTEXTS TRADING IN THE SUBREGION

The conduciveness of the business environment is


A FAIRLY COMPETITIVE AND INNOVATIVE ranked 148th globally, 27th in sub-Saharan Africa and
ECONOMY 8th in West Africa, according to the World Bank’s Ease
of Doing Business, with an overall score of 52.9/100.
The Global Competitiveness Index ranked the overall The country fares better than its subregional
competitiveness of Mali’s economy 129th globally, counterparts do in the dimension of trading across
25th in Africa and 9th in West Africa, with a score of borders, for example, with the lowest monetary
45.6/100.86 The contributing factors to this overall cost of documentary compliance. Furthermore,
performance are macroeconomic stability (4th in the country is ranked the 132nd Best Country for
West Africa), the large market size (5th), high-quality Business by Forbes Magazine, 25th in Africa and 10th
infrastructure and stable financial system (6th), and in the West African subregion, thanks to its economic
business dynamism and innovation capability (7th). growth, GDP per capita, trade performance and
population size.
The Global Innovation Index ranks Mali as the 123rd
most innovative country in the world, 24th in Africa
and 7th in the subregion, with a score of 19.2/100. INVESTING AND DOING BUSINESS IN MALI
This ranking is due to the extent and quality of
knowledge and technology outputs (2nd in the
subregion), and the level of business and market FAST-GROWING ECONOMY
sophistication (6th).
Mali’s economy has been on a sustained growth
trajectory, with rates averaging more than 5%
GOOD REGULATORY ENVIRONMENT in 2016–20. This is largely thanks to a robust
agricultural sector (2nd largest cotton production
The World Bank’s Worldwide Governance Indicators in Africa, estimated at 500,000 tons/year, and 1st
rank Mali’s political institutions 153rd in the world, largest livestock – mostly sheep and goat – in the
24th in Africa and 10th in West Africa. The regulatory subregion), and a thriving mining sector (the country
quality is the dimension in which the country fares is the 3rd largest gold producer in Africa, with 50
relatively well in the subregional context, with tons annually, and has large reserves of iron, bauxite
7th rank. and uranium). As a result of the COVID-19 pandemic,
growth contracted by 1.65% in 2020, through a
sharp decline in travel, trade, FDI and remittances.
GOOD LOGISTICS SYSTEM AND INFRASTRUCTURE However, the economy is expected to bounce back
in 2021 with a projected 4% growth rate, thanks to
When it comes to the quality of logistics, the World containment measures and a package of economic
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Bank’s Logistics Performance Index ranks the country and social support responses, combined with
96th in the world, 12th in Africa and 4th in the subregion, improved security in the north that are expected
with an overall score of 2.59 out of 5.87 to expand the country’s productive base and help
The performance mostly owes to the ability to attracts more investment.
track and trace consignments, which is the 2nd
strongest in the subregion. Additionally, the African
Infrastructure Development Index ranks Mali’s RELATIVELY LOW COST OF DOING BUSINESS
overall infrastructure quality 9th in West Africa and
35th on the continent, with a score of 16.7/100. FDI has been flowing into the country at an average
The subcomponents of water supply and sanitation annual rate of 2.2% in the last decade, reaching
infrastructure are 5th in the subregion, while $493.8 million in 2019.
electricity and ICT infrastructure come 6th.
Foreign investors considering investing in Mali
would go through the relatively easy administrative
processes of starting a business, consisting of five
procedures:

86 Most recent available years are considered for each ranking.


87 ‘Subregion’ is used to denote West Africa (ECOWAS), while ‘region’ refers to the African continent. 75
(1) Deposit the initial capital with a bank or a notary, Water is readily available, despite the country’s
and then obtain the certification; arid conditions. The share of the total population
(2) By-laws, sign an affidavit to certify the absence of using at least basic drinking water services is 78.3%
criminal records and pay the registration fee at nationwide, and 92.2% in urban areas. Water charges
the notary; a public notary is required by law; are XOF 110 ($0.2) to XOF 583 ($1.06) per cubic
metre, depending on the interval blocks and on the
(3) Purchase legal stamps at the one-stop shop type of use (commercial/industrial or residential).
(Agence de Promotion de l’Investissement, located
throughout the country, mostly in Bamako, Mopti, Mali’s infrastructure network comprises 15,100 km
Sikasso, Kayes and Segou) needed for obtaining of roads (of which 1,827 km are paved), 729 km of
the authorization to operate, and the applications meter-gauge railway that links Bamako to Senegal’s
for the impots (taxes), the Tribunal de Commerce railway through Kayes, 1,815 km of waterways that
and the statistical office; are navigable (mostly on the River Niger), one major
(4) Deposit all registration documents and forms at port located in Koulikoro in western Mali on the
the front desk of the one-stop shop in order to River Niger, and Modibo Keita International Airport
register with all the services represented; in Bamako-Senou (in addition to medium airports in
Gao, Kayes, Mopti and Timbuktu).
(5) Publication of the notice of incorporation in a
pressjournal.
When it comes to the tax system, businesses are
All of these procedures take an average of 11 days expected to make up to 35 payments annually,
to complete, and the total fees amount to XOF which could take 276 hours. The tax structure
265,750 ($483.2). comprises standard corporate tax (35%, tax on
dividends at 10%), value-added tax (18%), payroll
A construction permit can be acquired in 124 days, tax on the gross salary of each employee (3.6%),
and it requires 12 procedures and costs an average a 35% contribution to the social security funds paid
of 9.3% of the warehouse value. Registering by the employer on the employee’s gross salary,
property (land, commercial or residential) requires and real property tax at an annual rate of 3% of
five procedures and takes up to 29 days, at a cost the value of the real estate, whether developed or
averaging 11.1% of the property value. National laws not. Furthermore, companies are allowed to carry
guarantee equal treatment between nationals and forward tax losses for up to three years, but carry
foreigners, whether investors or workers. back of losses is not allowed, and holding companies
are not subject to any corporate taxation in Mali. In
For visa rules, expatriates from ECOWAS or addition, personal income tax is approximately 7%.
elsewhere are entitled to a period of stay that
matches their employment or business duration, Customs duties are based on the ECOWAS CET,
with no extra limitations. which is made up of five tariff bands. They range
from 0% (essential social goods) to a maximum of
The labour force comprises 7.3 million individuals, 35% (specific goods for economic development).
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

of which two-thirds are employed – more than the Additional measures destined to protect vulnerable
continental average of 60.2%. On the World Bank’s industries while guaranteeing fair competition
Human Capital Index, Mali scores 0.32. The country’s throughout the liberalized subregional markets
guaranteed minimum wage (SMIG) has been at XOF include safeguard measures, anti-dumping
40,000 ($73) since 2016 and the salary distribution measures, anti-subsidy and countervailing measures,
typically goes from XOF 83,500 or $151.8 (lowest and supplementary protection measures.
average) to XOF1,470,000 or $2,672.7 (highest
average), with actual maximum salary being higher, The banking and financial system is part of the West
depending on the industries and workers’ skills and African Economic and Monetary Union’s integration
education. scheme which provides it with stability. The average
bank lending rate was 7.7% in 2019, and total credit
Energy is relatively cheap in Mali. Electricity is to the private sector represents nearly one-quarter
charged at a rate of XOF 78.1 ($0.14) per kWh, the of GDP, the 5th largest in the subregion. The extended
3rd lowest in the subregion. Obtaining a connection reach of the 14 national, regional and international
to the national grid takes approximately 120 days, banks operating in Mali guarantees the availability
and the process involves only four procedures of foreign currencies at a relatively predictable
(2nd fewest in Africa). Overall, 50.9% of the rate (partly thanks to the fixed exchange rate of
population has access to electricity. the common XOF currency against the euro), free
international money transfers (e.g. remittances),

76
and the possibility for individuals and businesses to d’Ivoire) and Bobo-Dioulasso (Burkina Faso) will
maintain foreign currency accounts. provide further incentives for both local and foreign
investors. The project, whose legal framework is yet
As part of the financial integration in the WAEMU, to be developed, is part of the ECOWAS Cross-border
FDI companies can access and raise capital in the Initiatives Programme launched in 2005 with the
subregional stock exchange market (Bourse aim to increase cooperation frameworks along intra-
Régionale des Valeurs Mobilières), which has community borders.
65 listed companies (as of June 2021).
Overall, the readily available skilled labour force
When it comes to incentives for foreign and energy at a competitive cost, the economy’s
investment, the Agence pour la Promotion des dynamism, strong government incentives, its
Investissements (API) has been set up to promote pivotal cross-border trade position in the subregion
domestic and foreign investment. It provides up-to- and sound and open banking and financial system
date information, mostly on its website, including represent key elements Mali’s attractiveness
investment opportunities in sectors with high levels for foreign capital seeking favourable business
of profitability, such as agriculture, livestock farming, destinations in West Africa.
energy and infrastructure. Additionally, there are
fiscal incentives that include:
MANGO IN MALI: AN OVERVIEW
ƒ Tax exemption on dividends paid by subsidiaries
to their parent of up to 95% of the amount paid,
Mango is the largest fruit crop in Mali, with
and on capital gains (realized during exploitation)
approximately 100,000 hectares cultivated by more
after commitment to reinvesting them in a WAEMU
member State within three years from their than 5,000 commercial mango farmers. According to
realization; the IFM, only 5%–15% of the production, estimated
to be 350,000 tons, is commercialized. This low
ƒ Tax exemption from industrial and commercial profit number is partly due to post-harvest losses (more
taxes on half or two-thirds of capital gains realized than 35%), but also to the lack of outlet leading
at the end of operation; and an exemption from the to unharvested mangoes lying under the trees.
minimum flat-rate tax for any fiscal year in deficit Nonetheless, Malian mango commercialization is
during at least the first five years, among many others. growing by 9% per annum since 2015. In 2018–19,
it increased by 17%, officially reaching 82,688 tons.
Moreover, when fully operational, the cross-border Considering self-consumption, the total use exceeds
SEZ, located in Sikasso (Mali), Korhogo (Côte 100,000 tons.

Figure 35: Mango production in Mali by region

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Sikasso region
main area of commercial mango production

Koulikoro and Bamako regions


other areas of commercial mango production

Kayes, Segouand Mopti regions


minor production areas

16,000 t

8,000 t
58,000 t

Source: Consultant based on industry interviews.

77
Producers are mostly smallholder farmers with (16,500 tons) and Bamako (surroundings of the
diversified crops, for whom mango represents an capital) at 9% (8,300 tons).
essential source of income, as it comes during the
dry off season. Production is generally ensured Depending on the rainy season, Mali’s mango
by traditional orchards of 2–3 ha with an average production season is parallel or follows just after
planting density of 200 trees per ha. These Côte d’Ivoire, between March and July, in all the
plantations are mostly rain fed. Only a handful of producing regions. The main varieties are Amelie,
commercial and professional orchards exist, of Kent, Valencia and Keitt. Amélie is the earliest
20–100 ha, with a high planting density of 400 variety and starts production in March/April,
trees per hectare and drip irrigation in some cases. followed by Kent in April/May and Keitt in May/
June. There is also a small production window of
Sikasso is Mali’s mango production stronghold, local varieties from February to May, and even in
bordered by Burkina Faso and Côte d’Ivoire. In 2019, December for some of them, although most local
Sikasso generated 69% of the national production varieties do not meet export quality standards.
(58,000 tons), followed by Koulikoro at 19%

Table 13: Production and export calendar in Mali


JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Export season

Production season
Local
varieties
Varietie

Amélie
Kent
Valencia
Keitt

Figure 36: Production outlet and quantity of exported mango from Mali (in tons)
Outlets of the marketed production Exports of mango products from Mali
(2019) (2019)

Processing
Fresh (dried mango) Mango Dried
domestic 1,500 puree and mango
consumption 2% Processing concentrate 150
25,000 (juice) 7,800
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

27% 34,000
37%

Fresh
exports Fresh
31,000 exports
34% 31,000

Source: Consultant, based on data from Interprofession Malienne de la Mangue (IMF).

78
Figure 37: Evolution of Malian mango exports (2011–20) (in tons)
25000
1800

1900
20000 6000
500 1300 6100
1100
15000 600 5800 4200
5100
5800
6100 3500
200 2500
10000 3350
4900 1700 3300
100
2200
400 12700
5000 850 9500 10300
7300 8350
5800 6800
4700 4900
3000
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*

Fresh Mango to Europe Fresh Mango to Morocco

Export puree & concentrate to Europe Export puree & concentrate to North America

Note: 2020 data is estimated on partial information already available.


Source: ITC Trade Map – mirror data.

In recent years, the biggest part of the As visible in Figure 37, both export of fresh and
commercialized production is estimated to go to the processed mango to the international market have
juice industry. Two main factories, ComaFruits and grown fast in the last decade. Main destinations for
CEDIAM, absorb more than 30,000 tons of mango fresh mango are European countries (the EU, United
to produce juice (for the local market), puree and Kingdom, Switzerland, the Kingdom of Norway,
concentrate (for export outside of the subregion). and the Russian Federation Russia) and Morocco.
The second main market is estimated to be export Sporadic trades of a few containers also occurred in
of fresh mango (half of it to neighbouring countries), recent years (2019 and 2020) with the Republic of
then national urban consumption (estimated at Turkey, the People’s Democratic Republic of Algeria
25,000 tons in recent years) and, finally, the drying and the United Arab Emirates, but remain limited.
industry, which is very small in Mali. Export of mango puree and concentrate is mainly
destined to the EU and Canada.
The main export destinations for fresh Malian
mangoes are sub-Saharan Africa, Europe and Exports (fresh and processed) are regularly
Morocco. Flow to neighbouring countries of sub- increasing due to the international market’s growing
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Saharan Africa (mainly Mauritania, Senegal and demand and improvements in processing facilities.
Burkina Faso) are hard to estimate due to bad The average compound annual growth (CAGR) in
recording of those flows. The inter-profession the last decade was 18% for the export of fresh
estimates them to be 15,000 tons/year in recent mango and 58% for the export of mango puree
years. Exports outside of Africa are much better and concentrate. Even with the COVID-19 crisis in
recorded and presented in Figure 37. 2020, while fresh mango exports slowly decreased
in comparison with the previous season, exports of
processed mango continued to grow.

79
MANGO VALUE CHAIN AND STAKEHOLDERS

NURSERIES COLLECTORS/TRACKERS

Plant suppliers undertake the multiplication and Trackers act as liaison between producers and
grafting of different mango varieties. The number exporters. On behalf of exporters, trackers are
of nurseries is estimated at 3,000. They operate in responsible for identifying producers, negotiating
Bamako and Koulikoro, and with a strong presence purchasing conditions, and supervising the fruit or
in Sikasso (in 2019, 96% of seedlings came from harvest payment. They also oversee the collection,
Sikasso), particularly in the village of Mandela, aggregation and logistics from the orchard to the
where mango and citrus tree nurseries are the main packing station. Trackers can be divided into three
activity. categories:
ƒ Some producers are also trackers. In addition to
In 2016–20), 2.5 million mango seedlings have been
their harvests, they collect the harvest of their
sold per year, mostly for the Kent, Keitt and Amélie
village and sell them directly to offtakers.
varieties. This quantity is enough to plant up to
12,500 hectares per annum. ƒ In-house trackers are on the payroll of a single
mango offtaker (exporter and/or processor). The
offtaker provides the tracker with advances on
payment at the start of the campaign.
PLANTERS/PRODUCERS AND THEIR
ORGANIZATIONS ƒ Independent trackers use their capital to source
mangoes and sell to offtakers.
The number of mango farmers in Mali is estimated
at 5,000–10,000. Most of them are smallholders
with traditional orchards with low densities, low PROCESSORS
management and seemingly no inputs. There
are also some commercial farmers and farming Mango processors in Mali mainly produce purees,
companies that use more intensive agricultural concentrates, dried mango and juices. Puree
practices. and concentrates are in the hands of two private
agribusiness processing companies (ComaFruits and
In Mali, most producers are part of a mango CEDIAM) in Sikasso and Koulikoro, with capacities of
cooperative or association. Their local cooperatives 1,000–15,000 tons. The production is exported to
are members of a federation, unions or groups. Europe and North America.
The main mango cooperatives are the Cooperative
of Mango Producers (COPROMANG, Bamako), the Two dozen SMEs are active in mango drying,
Coopérative des planteurs et Maraîchers de Sikasso with processing capacities of 5–200 tons of
(CPMS, Sikasso), Union régionale des producteurs dried mangoes per year. Mango juice and jams
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

de mangues de Sikasso (URPMS, Sikasso), Union des from several SMEs are processed by more than
Coopératives des Planteurs de Mangue de Yanfolila 100 artisanal processing units, but most are not
(UCPMY, Yanfolila), Association de Groupements de financially sustainable and face quality issues.
Planteurs et maraîchers de Kati (AGMK, Kati) and
Groupements de planteurs et maraîchers dans les
prefectures (GPMP). EXPORTERS

There are approximately 30 Malian companies


involved in mango exports. Mango exporters need to
be registered at the Ministry of Industry, Investment
& Commerce. Exporters are responsible for sorting,
calibrating, palletizing, packaging and cold storage.
Few exporters have their own packing house and
cold rooms; most work with the Périmètre Logistique
Aménagé en Zone Aéroportuaire (PLAZA) in Bamako
and the Centre de Conditionement de la Mangue et
la Pomme de Terre de Sikasso (CCMPS) in Sikasso.

80
Exporters specialize by geographic destination and TRANSPORTATION NETWORKS
are grouped into three leading associations:
In Mali, there are three modes of transport for the
ƒ Association Malienne des Exportateurs des
export of mango-based products: road, air and sea.
Légumes et de Fruits (AMELEF) – the largest
Dried mango is mainly shipped by road to Burkina
association in terms of membership;
Faso and then exported abroad by companies based
ƒ Association des Professionnels Exportateurs des in Burkina Faso via the port in Abidjan. Mali is ranked
Fruits et Légumes (APEFEL) – accounts for half of 96th out of 160 countries on the 2018 Logistics
mango exports in terms of volume; Performance Index, which measures the capacity
ƒ Association des Jeunes Exportateurs (AJEX) – of countries to efficiently move goods and connect
set up by and for young entrepreneurs. manufacturers and consumers with international
markets.
Exporters work with freight forwarders who oversee
export procedures and act as intermediaries All the exports to sub-Saharan Africa (except for
between the administrative authorities and Gabon, by air) and Maghreb are done by road. Roads
exporters by carrying out trade, customs and are the main mode of transport in Mali, with a
transport formalities both in Mali and abroad. network of 89,000 km, of which 5,690 km are paved.
Most secondary and tertiary roads are unpaved, in
poor condition and often impassable during the rainy
WAREHOUSING/STORAGE FACILITIES season, making access to orchards difficult via rural
roads.
There are two warehouses and storage facilities
that meet international standards, with a combined The ocean remains the most used mode of
potential capacity of approximately 10,000 tons of transport by Malian exporters, as it is well adapted
fresh mango per campaign: the Périmètre Logistique when it comes to exporting a large quantity of
Aménagé en Zone Aéroportuaire (PLAZA) of Bamako fresh mangoes. Mali is a landlocked country and,
and the Centre de Conditionement de la Mangue et therefore, does not have a seaport, forcing exporters
la Pomme de Terre de Sikasso (CCMPS) of Sikasso. to use road transport to bring products to a coastal
country for export by sea. The port of Abidjan in
Both are joint investments of the Malian Côte d’Ivoire is the most frequented by Malian
Government, the World Bank (WB) and the Kingdom exporters due to its proximity to production areas
of the Netherlands, and are managed by the IFM. As and to packaging centres where the fruits are sorted,
such, they are accessible to all members of the inter- cleaned, packed and refrigerated.
professional association. A phytosanitary control
officer of the Ministry of Agriculture is present in A small amount of fresh mango is shipped by
each centre for the inspection of mango pallets and airfreight via the Modibo Keita International Airport,
the issuance of the phytosanitary certificate. but fresh mango shipped by air has decreased by
62% in the last three years.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
TRANSPORTERS AND LOGISTICIANS

Most exporters do not have a fleet of vehicles


to collect and transport mangoes, and rely
on companies that specialize in logistics and
transportation. These companies also provide
refrigerated containers (reefers) suitable for
transporting mangoes over long distances while
preserving the product’s integrity. During the peak
of the harvest season, reefers are challenging to
get at affordable prices and in sufficient quantity.
The scarcity of containers is explained by the high
demand from exporters in Côte d’Ivoire, Senegal
and Burkina Faso. As a landlocked country without a
port, the transportation and logistics needs of Malian
exporters are not prioritized.

81
INVESTING IN MANGO IN MALI: KEY FIGURES

Input supply Processing


Number of mango plant nurseries within Share of local processing (on the commercial
the country: 3,000 nurseries producing 2.5 production): 39%
million seedlings annually
Main process: Mango puree and
Number of suppliers of fertilizer/ concentrate for national and export
phytosanitary treatments within the country: markets
20
Number of industrial processing companies:
Number of suppliers of organic fertilizers/ 2
phytosanitary treatment within the country:
10
Investment indicators
Number of national manufacturers of
Cost of land in rural areas: XOF 250,000 to
mango packaging (cartoons and paper kraft
XOF 500,000 ($455–$910) per hectare
cardboards, etc.): 1 factory starting in 2021.
Cost of land in urban areas: XOF 800,000
to XOF 1,500,000 ($1,455–$2,725) per
Production hectare
Estimated total production: 350,000 tons Cost of power: XOF 120 /kWh ($0.28//kWh)
Estimated commercial production: 100,000 Cost of unskilled workforce: XOF 40,000
tons ($72) per month
Number of commercial mango farms (with > Cost of skilled workforce: XOF 100,000 to
1 ha mango orchard): +/- 5,000 farms XOF 250,000 ($180–$455) per month
Average yield of commercial mango farms: Cost of transportation: Sikasso–Abidjan: XOF
5 tons/ha 145/kg ($5,300/20’ reefer)
Farm gate prices: Enabling Business in Agriculture (EBA 2019)
Min.: XOF 100/kg; median: XOF 150/kg; score and rank: 33.7 (rank 88/101)
Max.: XOF 175/kg
Doing Business (2020) score and rank: 52.9
(rank 148/190)
Marketing
Distance from main production area to
airport: 350 km
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Distance from main production area to port:


800 km
Number of available platforms/centres for
cleaning/packaging/export: 2 (Sikasso and
Bamako)
Number of exporting companies: 30
Volume of fresh export in 2020: 6,500 tons
Number of rejections in the EU in 2018:
32 containers rejected

82
INVESTMENT OPPORTUNITIES IN MALI’S INVESTMENT AND MANGO SECTOR SUPPORT
MANGO SECTOR STRUCTURES AND PROGRAMMES

OPPORTUNITY 1: ORGANIC MANGO PRODUCTION SUPPORT STRUCTURE

With the many ageing mango orchards, the Interprofession Filière Mangue (IFM)
accessibility and low cost of land in Mali and the
uncommon use of chemicals, Mali is the perfect IFM is an association that regroups every actor of
country for investing in organic mango production. the mango value chain. Membership fees and a
The production can target the fresh export market 2% levy throughout mango production and export
as well as the processing sector, as the two main chain finance the organization. The Agricultural
juice processing factories are already certified Orientation Law supports the creation of inter-
organic. The organic mango market is growing fast professions in Malian agricultural sectors.88
and generates a lot of value addition. Production
schemes, including a part of self-production on large The IFM was established in 2011 and aims to improve
orchards and a part of outgrowing with smallholder supply chain performance, competitiveness and mar-
farmers in a radius of a few tens of kilometres, could ket access. The IFM regroups nursery workers, mango
be adopted to create organic mango production producers, trackers, processors and exporters with
clusters. regional representations, in Sikasso, Koulikoro and
Bamako. Given its reach, the IFM is often a primary
beneficiary of projects supporting the mango value
OPPORTUNITY 2: ORGANIC MANGO PROCESSING chain, such as the World Bank’s Programme Compéti-
tivité et Diversification Agricole (PCDA) and the Unite
The two existing processing companies are unable de Mise en Oeuvre du Cadre Integre (UMOCI).89
to meet the strong and growing demand for
organic mango juice. There is a lot of room for
other investors in this sector. Investors can take Agence pour la Promotion des Exportations
advantage of the already recognized ‘origin/name’ (APEX)
of Malian organic mango to take market shares in
a fast-growing sector with high value addition. The Created by law N° 2011-032/AN - R.M. of 24 June
availability of organic inputs in Mali, with several 2011, APEX’s mission is to develop the export of Malian
providing companies, is also a strong advantage for goods and services. The agency’s mandate is to:90
this sector in the country.
ƒ Organize promotional activities for Malian goods
and services;
OPPORTUNITY 3: LOGISTICS AND PACKAGING FOR ƒ Implement sector development programmes and
FRESH MANGO EXPORT sectoral export promotion strategies formulated
by the government;
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Transportation, storage, cooling and packaging ƒ Implement export incentive mechanisms;
infrastructure in Mali is still insufficient in ƒ Provide producers and exporters with information
comparison to the strong demand of the mango and on quality standards and market access conditions
more generally of the horticultural sector. Investing for goods and services;
in such services with direct links with Abidjan and/ ƒ Support enterprises to increase and diversify
or Dakar port infrastructure is a strategic and goods and services for export;
promising investment.
ƒ Conduct research and studies in the field of export
promotion and disseminate the results;
ƒ Establish certificates of origin for goods intended
for export;
ƒ Contribute to the collection, processing and
dissemination of foreign trade statistics;
ƒ Encourage and develop strategic partnerships to
increase exports and promote Malian goods and
services.

88 IFM Mali (2015).


89 PCDA (2009).
90 https://agoa.info/images/documents/6187/strategie-agoa-mali.pdf. 83
Agence Malienne de Normalisation et Ministry of Agriculture’s Office National
de Promotion de la Qualité (AMANORM) de la Protection des Végétaux (ONPV)

AMANORM is Mali’s national standardization body. The Ministry of Agriculture’s central role in the
It leads and coordinate work, studies and surveys mango sector via its ONPV consists in ensuring the
in standardization, quality promotion, certification application of national and regulatory texts related
and accreditation. AMANORM is a member of ISO, to phytosanitary control and mango training for
the ECOWAS Standards Harmonization Model inspectors on certification procedures. The office is
(ECOSHAM), the ECOWAS Quality Policy (ECOQUAL) also in charge of coordinating the Comité national
and the WAEMU quality policy.91 Its primary functions de Surveillance et de lutte contre les Mouches
are: des Fruits du Manguie (CNSL-MF), which provides
technical information, advisory services, and training
ƒ Assist enterprises in the certification of their
in the fight against fruit flies.94 The committee
production systems and products;
comprises representatives of the Assemblée
ƒ Assist laboratories, inspection and certification Permanente des Chambres d’Agriculture du Mali
bodies in the accreditation process; (APCAM), research institutes and Comité de Liaison
ƒ Manage and disseminate all documentation Europe Afrique Caraïbes Pacifique (COLEACP).95
related to standardization and the promotion of
quality;
ƒ Inform, assist and advise companies and Agence Nationale de la Sécurité Sanitaire
laboratories in the fields of standardization, quality des Aliments (ANSSA)
assurance, quality management, certification and
accreditation; ANSSA is a public scientific and technological agency
ƒ Undertake training and development activities in established under the Ministry of Health and Social
the areas of standardization, quality promotion, Development, known as the National Food Safety
certification and accreditation; Agency. Its mission is to:96
ƒ Create the national mark of conformity to ƒ Coordinate all actions related to food safety;
standards and managing its use. ƒ Provide technical and scientific support to the
control structures;
Centre pour le Développement du Secteur ƒ Ensure the technical and scientific support
Agroalimentaire (CDA) necessary for the elaboration of food safety
regulations;
In 2011, the Malian Government adopted the ƒ Assess the health risks that could be posed by:
Strategy for the Development of the Agrifood ƒ The processes and conditions of production,
Sector and its 10-year action plan (2012–21). This processing, preservation, transport, storage
strategy’s implementation led to the CDA’s creation and distribution of food items;
in June 2013.92
ƒ Residues of veterinary, phytosanitary and
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

fertilizer products and other contaminants;


The CDA’s mission is:93
ƒ Packaging and materials intended to come
ƒ Increase the managerial and commercial into contact with the elements as mentioned
capacities of agrifood processing companies; earlier;
ƒ Set up a database on the agrifood sector; ƒ Support the activities of surveillance systems
ƒ Facilitate access to financing for agrifood and epidemiological networks.
companies.
Specifically, concerning the mango sector, ANSSA
developed a self-check guide for Mali’s mango
sector.97 The agency also provides support

91 https://www.iso.org/fr/member/1915.html.
92 https://www.lejecom.com/Mali-Un-centre-agroalimentaire-pour-developper-le-secteur_a2858.html.
93 http://bamada.net/mali-centre-pour-le-developpement-du-secteur-agroalimentaire-le-projet-de-programme-dactivites-et-de-budget-2020-
adopte-par-les-administrateurs.
94 Final Report on an audit carried out in MalifFrom 13 June 2017 to 22 June 2017 to evaluate the official control system for plants and plant
products intended for export to the European Union.
95 http://www.coleacp.org/fr.
96 http://41.73.116.155:8000/anssamali/index.php.
84 97 http://www.ipcinfo.org/fileadmin/user_upload/codexalimentarius/CODEX50/ppt/CodexMali_50ans.pdf.
against sanitary and phytosanitary risks in Mali’s West Afrika Trade and Investment Hub (WATH)
mango export sector, consisting of mapping all
mango orchards and identifying their owners by WATH is a United States Agency for International
municipality. This will enable national authorities to Development (USAID) initiative. The hub contributes
trace each batch of mangoes’ origin in case of an to this goal by building and working through a
incident.98 network of West African partners to develop trade
and investment in targeted value chains at regional
and global levels.101
Institut d’Economie Rurale (IER)

The IER researches agricultural technologies and the Projet d’Appui à la Compétitivité
fight against fruit flies via its stations in Koulikoro Agroindustrielle au Mali (PACAM)
and Sikasso as part of the Comité National de
Surveillance et de lutte contre les Mouches des The Malian Government received $30 million in
Fruits du Manguie (CNSL-MF). investment from the World Bank to set up PACAM.
The project supports the mango value chain’s
development in Sikasso, Koulikoro and Bamako.
PROJECTS/PROGRAMMES
In its mango value chain component, the project’s
Unite de Mise en Oeuvre du Cadre Integre objective is to increase mango processing and
(UMOCI) export, improve access to mango production areas,
and strengthen institutional and implementation
UMOCI is a World Trade Organization (WTO) initiative capacities. PACAM will contribute to capacity
whose mission is to ensure the coordination of the building to enable full development of growth
actions of the administration, the private sector and potential, improve existing and future processing
civil society in the following areas:99 capabilities, and increase access to national, regional
and international markets.
ƒ Initiate information, sensitization and training
programmes for government, private sector and
civil society structures to ensure their mastery of
GIZ – Programme d’Appui au Sous-Secteur de
the Enhanced Integrated Framework Aid for Trade;
l’Irrigation de Proximité (PASSIP)
ƒ Monitor the implementation of sectoral action
plans and trade capacity-building programmes PASSIP funds local irrigation systems that contribute
adopted by the Malian Government and its
to improving the economic and nutritional situation
partners;
of farmers’ organizations, associations and
ƒ Evaluate and monitor the integration of trade into agricultural enterprises along various value chains.
the Poverty Reduction Strategy Framework.

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


GIZ – Centre d’Innovation Verte (CIV)
Economic Community of West African States
(ECOWAS) The CIV programme focuses on innovation in
agricultural value chains. While addressing specific
ECOWAS set up a response plan in 2015 to support research problems in several crops, the mango
the regional fruit fly management and control plan intervention aims to develop integrated fruit fly
in West Africa to monitor the level of fly infestation management.
and issue early warnings by short messaging service
(SMS) to producers and plant protection services of
member states. These alerts are accompanied by
advice on how to take effective fruit fly preventive
measures. In 2014–18, the plan reduced the volume
of fruit shipments damaged by fruit flies by 57%,
which resulted in a 40% increase in mango exports
from the ECOWAS area to Europe.100

98 http://www.sante.gov.ml/index.php/actualites/item/1468-rapport-final-de-l-agence-nationale-de-la-securite-sanitaire-des-aliments-anssa.
99 https://www.cirmali.org/structures%20au%20niveau%20national.html#.
100 https://www.afd.fr/fr/actualites/eradication-de-la-mouche-des-fruits-en-afrique-de-louest-lunion-fait-la-force.
101 https://westafricatradehub.com. 85
Europe-Africa-Caribbean-Pacific Liaison 2SCALE
Committee (COLEACP)
The 2SCALE programme relies on a business
COLEACP was identified as the reference approach to improve rural livelihoods and food
organization to support the development of security in Africa. It works through public–private
sustainable agriculture in ACP countries in fruit and partnerships to accelerate the creation of inclusive
vegetables. The organization is a stakeholder in the businesses. The goal is to support smallholder
Regional Plan for the Control of Fruit Flies in West farmers and private enterprises in integrating
Africa. The plan aims to reduce EU interceptions of commercial agrifood value chains.103
mangoes from Mali due to fruit fly presence.102

Name Organization Contact

Moctar Fofana Interprofession Filière Mangue (IFM) +223 66 73 54 12

Aliou Kassogue Projet d'Appui à la Compétitivité +223 79 49 42 32


Agroindustrielle au Mali (PACAM)

Fodé Konate PCDA +223 69 85 11 80

Abdoulaye Sidibe Institut Polytechnique Rural de +223 66 31 04 40


Formation et de Recherche Appliquée
(IPR/IFRA)

Oumar Fofana Chef Division/Direction nationale de +223 79 40 20 64


l’Agriculture (DNA)

Mamadou Karabemta Chargé Programme ECOWAS/Office de +223 76 18 29 60


Protection des Végétaux (OPV)

Maman Kone Sous Direction des Programmes d’Appui +223 66 71 57 25


aux Entreprises (S/D PAE)/APEX – Mali

Karim Togola Directeur général adjoint (DGA)/APEX +223 66 91 60 02


– Mali

Mamadou Soufountera Laboratoire de Technologie Alimentaire +223 76 47 87 4


(LTA)

Dansinè Coulibaly Unité de Mise en Oeuvre du Cadre +223 76126454


Intégré (UMOCI)

Abdoulaye Nientao Institut d’Economie Rurale (IER) +223 82 01 28 28

Yaya Ballo GIZ +223 66 79 16 67

Fana Coulibaly Agence Nationale de la Sécurité +223 66 62 50 41


WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Sanitaire des Aliments (ANSSA)

Sidiki Traore Ministry of Agriculture’s Office National +223 91 53 54 24


de la Protection des Végétaux (ONPV)

Youssouf Cisse Centre pour le Développement du +223 76 38 60 22


Secteur Agroalimentaire (CDA)

Younoussa Maiga Agence Malienne de Normalisation et de +223 20 21 06 37


Promotion de la Qualité (AMANORM)

102 https://www.coleacp.org/?lang=en.
86 103 https://www.2scale.org.
SWOT OF MALI’S MANGO SECTOR

Figure 38: SWOT of Mali’s mango sector


Processing, Policies,
Production factors conditioning, storage certifications and Demand Financing Other
and packaging quality management
Strengths
ƒ Favourable ƒ Two large existing Member of WAEMU, ƒ Growing
agroecological processors ECOWAS and national
conditions strengthen the value Organization for market:
ƒ Abundant land and chain the Harmonization mango is the
water ƒ A cardboard factory of Business Law in main fruit
currently being built Africa (OHADA) consumed
ƒ Young, growing and by both
affordable labour ƒ Favourable
Geospatial factors legislature for urban
force and rural
ƒ Strategically agriculture
ƒ Varieties available (agricultural consumers
(Keitt and Kent) well located with (seven)
neighbours orientation law)
appreciated in all and investment
export markets ƒ Main production
(investment code)
basin is close to
the port of Abidjan ƒ Low access tariffs
(Côte d’Ivoire) and to European and
processors of Bobo- American markets
Dioulasso (Burkina
Faso) area

Weaknesses
ƒ Low level of training ƒ Inadequate and ƒ Difficulties
for nurseries lacking storage accessing
ƒ Insufficient infrastructure (pre- affordable
phytosanitary cooling, cold rooms and adapted
treatments to fight and reefers) financing, be
fruit flies ƒ Insufficient number it for capital
of packing houses, expenditure
Post-harvest poorly distributed or working
geographically capital
ƒ Unavailability of
adapted plastic ƒ Lack of packaging
harvest crates materials
ƒ Poor inbound ƒ Lack of adequate and
transportation: diverse packaging,
rural tracks in bad particularly for
condition, making
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
consumer products
access to producing like juices and dried
region costly and mango
time-consuming, ƒ Expensive to import
especially if rainy packaging
season is early (June)
ƒ Cost and availability
ƒ Poor outbound of electricity
transportation:
national road
networks that
lead to exporting
neighbouring
countries are
progressively
degrading

87
Opportunities
ƒ Potential ƒ Potential for product ƒ Creation of a special ƒ Growing local ƒ Creation
intensification of diversification: frozen economic zone (SEZ) demand for of an
mango orchards mango; chopped and for Sikasso–Korhogo– mango juice investment
within the framework individual portion; Bobo–Dioulasso currently and
of climate protection vinegar; chutney/ (SKBO) unmet guarantee
funds jam; kernel butter; ƒ Taking full advantage ƒ Diversification fund focused
ƒ IFM will increase ingredients for of AGOA to penetrate towards new on the
coordination and cosmetics use American market markets mango value
efficiency along the ƒ Adoption of like: Middle chain to be
ƒ AfCEF (Africa managed by
mango value chain renewable energies Enterprise Challenge East, Tunisia,
(such as solar dryers Algeria, the the IFM
Fund) increases the
or biomass energy) to competitiveness Russian
decrease dependence of exports towards Federation
on the grid and fossil Africa and Japan
fuels

Threats
ƒ Ageing and ƒ European standards ƒ Political
destruction of are becoming stricter instability
orchards, and soil in terms of food and
erosion safety (mainly insecurity
ƒ Planters do not fruit fly) in Mali
respect harvest start
dates and are often
caught off guard
by narrowing of
production window
ƒ Lack of education of
farmers
ƒ Malian mango’s
quality reputation not
good

Competition
ƒ Intense regional
competition (price
war threat)
ƒ Latin American
countries are
becoming more and
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

more aggressive
in pursuing the EU
market that West
Africans countries
dominated in the
past
ƒ Saturation of dried
mango in EU markets
by countries like
Peru, Ghana, Burkina
Faso and South Africa

88
3.4. BURKINA FASO

COUNTRY OVERVIEW Burkina Faso – key facts


Capital city Ouagadougou
Area 273,600 km2
Burkina Faso, the ‘homeland of upright men’, Population, total 20.3 million
is at the heart of West Africa. This large landlocked
0–14 years 44.7%
country shares borders with six countries, making
15–65 years 52.9%
it a naturally strategic transit point in the West
African subregion.104 The climate is divided into Youth literacy 58.3%
(15–24 years)
tropical, with a rainy season between May and
September, mostly in the southern part, and Male 61.8%
Sahelian and dry in the northern part. The country Female 54.7%
is divided into 13 administrative regions and GDP, nominal $15.7 billion
45 provinces. Important cities, population-wise, are GDP growth, real 6.2%
Ouagadougou, the capital (centre region, with a (2014–19)
population of 1.1 million), Bobo-Dioulasso (Hauts- FDI, inflows $208.0 million
Bassins, south-east, with a population 360,106),
Gross domestic private $4.1 billion
Koudougou (Centre-Ouest, with 87,347 residents), investment
and Ouahigouya (north, with 61,096 residents). Employment to 62.3%
Approximately 70 languages are spoken in the population ratio
country, of which about 66 are indigenous (the (+15years)
dominant is Mossi, spoken by nearly half of the Employment to 47%
population). Diversity and openness are the population ratio
trademarks of the country’s rich culture and (15–24 years)
welcoming people. Politics and governance are Exports of G&S, 2014– 27.7% of GDP (4.06)
articulated around a presidential system and 19 (billion USD, 2019)
democratic principles of free and fair elections, Main products Pearls, precious stones and
and active participation of citizens in politics and metals; cotton; edible fruits and
nuts
civic life.
Imports of G&S, 2014– 32.5% of GDP (5.01)
19 (billion USD, 2019)
Main products Mineral fuels and oils; vehicle;
electrical machinery and
equipment
Inflation -3.2%
Bank credit to private 28.9% of GDP
sector
Govt. expenditure $3.8 billion WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Govt. revenue $3.1 billion


Total public debt $6.3 billion
Currency CFA franc (XOF)
Languages French (official), Mossi,
Mooré, Dioula, Peul, Fulfuldé,
Gourmantché

Note: Date is shown for the most recent years.


Source: World Bank, IMF, UNCTAD and Comtrade.

104 ‘Subregion’ refers to West Africa, and ‘region’ to the whole continent. 89
A FAIRLY COMPETITIVE AND INNOVATIVE CONDUCIVE ENVIRONMENT FOR DOING BUSINESS
WEST AFRICAN ECONOMY
The ease with which business is conducted in
The 2019 Global Competitiveness Index ranks the the country is ranked 151st in the world, 29th in
economy’s overall performance 130th globally, 26th Africa and 10th in West Africa, with an overall
in Africa and 10th in West Africa, with a score of score of 51.4/100, according to the World Bank’s
43.3/100.105 Of the contributing factors, the country Doing Business. Starting a business, dealing with
fares relatively well with respect to macroeconomic construction permits and trading across borders are
stability (2nd in West Africa), institutional quality (4th the business environment dimensions in which the
in West Africa), market size (6th) and the financial country is better positioned against its subregional
system (7th). counterparts (at least 5th). Additionally, when it
comes to Forbes Magazine’s ranking of the Best
The Global Innovation Index, co-published by Cornell Countries for Business, Burkina Faso comes 129th in
University, INSEAD, and the World Intellectual the world, 23rd in Africa and 8th in West Africa. The
Property Organization (WIPO), positions the country ranking is based on its economic growth, level of
at 118th in the world, 19th in Africa and 6th in West development (GDP per capita), trade balance and
Africa, owing particularly to its enabling institutions population size.
and the extent of human capital adequacy and
research capacity. INVESTING AND DOING BUSINESS IN
BURKINA FASO
GOOD INSTITUTIONAL AND LEGAL FRAMEWORK
THE 4TH FASTEST-GROWING ECONOMY IN WEST
The World Bank’s Governance Indicators rank AFRICA
Burkina Faso 106th worldwide, 12th in Africa and 4th
in West Africa. This institutional performance rests Burkina Faso’s economy has embarked on a strong
on the relative low incidence and strong control of growth trajectory. In the five years prior to the
corruption (4th in West Africa), the extent of rule of COVID-19 pandemic, the growth rate was 6.2%
law (5th) and government effectiveness (6th). on average, the 4th largest in West Africa and
8th in Africa. The main drivers of this economic
dynamism have been the mining sector (especially
GOOD INFRASTRUCTURE QUALITY gold, which accounts for 12% of GDP and three-
quarters of the country’s total export earnings),
The African Infrastructure Development Index and agriculture (mostly cotton, the country being
ranks the country 30th on the continent for overall the largest producer in the subregion). The ongoing
infrastructure development, and 7th in West Africa, pandemic has reduced growth to 2.0% in 2021, but
with a score of 18.5/100. The road infrastructure the economy is forecast to recover faster, with GDP
is the 3rd most developed in the subregion and 16th growth projected to reach 5.8% in 2021.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

in Africa. Furthermore, the quality of the logistics


systems is 91st in the world, 10th in Africa and 3rd
in West Africa, with an overall score of 2.62/5, DOING BUSINESS MADE EASY AND AT REDUCED
according to the World Bank’s Logistics Performance COSTS
Index. More specifically, the country fares relatively
well when it comes to arranging competitively priced Investors considering doing business in Burkina Faso
shipments, the 2nd easiest in the subregion. will add to the growing trend of inward FDI. In the
last decade, incoming flows have increased by 22%
on average, the second-fastest growth in Africa, and
reached $208 million in 2019, with a cumulated
stock of $2.66 billion. Various factors contributed to
the attractiveness of the economy and its business
environment.

90 105 For all the rankings used, the most recent data is considered.
Starting a business in Burkina Faso involves three Moreover, the visa rule allows foreign investors a
procedures (the lowest figure across Africa): duration of stay that spans that of their business
activities, with no specific limitations.
(1) Deposit subscribed capital of XOF 25,000 ($45.5)
in a bank or any other credit or microfinance
Minimum wage is XOF 34,664 ($63.0) per month.
establishment;
The average salary for the typical worker is XOF
(2) Have a public notary notarize the declaration 331,000 ($601.8) per month, and the highest
of capital subscription and deposit the proof average is XOF 1,480,000 ($2,690.0), with actual
of capital deposit and declaration of capital maximum salaries being higher, depending on the
subscription with the notary office; although the skills and industry.
use of notary services are no longer required by
law, most companies still use them; Electricity cost averages XOF 130.9 ($0.24) per
(3) Register at one of the many branches of the kWh, and it takes four days to get a connection.
Centre des Formalités des Entreprises (CEFORE), However, the access rate for the general population
the country’s single window, for company is low (14.4%).
registration, tax number (IFU), labour and social
security; in July 2015, an e-registration was Water supply for residential and business use is
launched by CEFORE, called Systeme Integre mostly continuous in urban areas. Access rate to at
des Guichets Uniques (SIGU) and, since then, least basic water is estimated at more than 79%,
companies can register via an online portal. In against 43% in rural areas. Tariff grid ranges from
practice, most entrepreneurs still prefer to do it XOF 407 ($0.74) per cubic metre (for total monthly
over the counter at the CEFORE office. consumption of less than 15 cubic metres) to XOF
1,083.5 ($1.97) (more than 100).

The entire process takes approximately 13 days and As far as infrastructure is concerned, there are
costs $48.8. an estimated 13,200 km of classified roads in
Burkina Faso, of which 1,800 km are paved. There
Acquiring or registering property, for business or are highways linking the capital to neighbouring
residential purpose, requires four procedures, takes countries, such as the broad Dakar–Bamako–
67 days and costs 11.9% of the property value. Ouagadougou–Niamey corridor. The country has two
Furthermore, obtaining construction permits international airports: Thomas Sankara International
involves 15 procedures, a maximum of 121 days and Airport in Ouagadougou, which handles some 98%
fees amounting to 7.6% of the warehouse value, of all scheduled commercial air traffic in the country,
with a standard warehouse priced at more than XOF and Bobo-Dioulasso Airport. Several regional
19.7 million ($35,818.2) on average. carriers operate international services, including
the parastatal Air Burkina, which has now been
Equality of treatment between national and privatized. A third airport is under construction in
foreign investors is guaranteed by law for all Dossin and is expected to be operational by 2023.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
administrative requirements, including acquisition As a landlocked country, the nearest ports used for
or registering property, forest and industrial rights, the country’s international trade are located in Cote
concessions, administrative authorizations, access to d’Ivoire, Ghana and Togo, with road corridor links to
permits or participation in state contracts. Ouagadougou. There is also a 1,260 km metre-gauge
railway route between Burkina Faso (starting from
Labour force is abundant and readily available, Tambao, the most north-eastern part of the country,
with 7.4 million active individuals. The World Bank’s which has manganese deposits) to neighbouring Cote
Human Capital Index ranks the measurement of d’Ivoire (roughly 622 km are within Burkina Faso).
the contributions of health and education to worker Thanks to a modernization project agreed on in July
productivity 0.39/1. Investors can easily have access 2019 between both countries (postponed due to the
to foreign workers from the ECOWAS subregion and pandemic), freight capacity is expected to go from
elsewhere, and these expatriate workers enjoy a 800,000 to 5 million tons per year, and the number of
similar treatment as their national counterparts. passengers from 200,000 to 800,000 per year.

91
When it comes to taxation, companies are required The openness of the banking and financial system
to pay a standard corporate tax (27.5%), payroll tax enables individuals and businesses to easily make
(3%), social security contributions (16% of the gross cross-border money and financial transfers (in
salary paid), value-added tax (18%) and estate tax the form of remittances, for example) as well as
(0.1% on the value of the built or unbuilt property). maintain foreign currency accounts. Currency
In total, these business taxes and contributions conversion is also readily available, both in formal
amount to 41.3% of profits (and labour taxes and and informal markets. The fixed exchange rate
contributions represent 21.4% of commercial between the common subregional currency and the
profits), and a total of 45 payments are made euro, at 655.96, reduces the risk associated with
in a typical year. The tax structure also includes market fluctuations.
individual income tax ranging from 0% (monthly
income less than XOF 30,000, or $54.5) to 25% Additionally, there is an active subregional stock
(more than XOF 250,000, or $454.5). exchange, with 65 listed companies (as of June
2021), including FDI companies from various
Customs import duties are subject to the ECOWAS sectors (such as financial, banking, industry and
CET, and rates applied to the five tariff bands transportation) that can raise capital easily.
range from 0% (essential social goods) to 35%
(specific goods for economic development). Further Investor incentives include the country’s two
customs and excise duties include statistical royalty effective SEZs located in Ouagadougou and Bobo-
(1%), community solidarity tax (1%) and ECOWAS Dioulasso, especially in opportunity filled sectors
community tax (0.5%). such as agribusinesses, which mostly transform
products such as mango, corn and tomatoes, as
The banking and financial system is generally well as the mining, energy and tourism sectors.
accommodating to business capital and financial The Agence Burkinabè des Investissements (ABI
needs. The system comprises approximately 18 – National Agency for Investments), a member
banks of subregional, continental or international of the International Network of Francophone
scope (up from 12 in 2011), and 129 microfinance Investment Promotion Agencies (RIAFPI) and the
institutions. Account ownership at a financial World Association of Investment Promotion Agencies
institution or with a mobile money service provider (WAIPA), is in charge of promoting investment,
represents 43.2% of the population (ages 15+), and mostly from abroad. It provides valuable information
domestic credit to the private sector represents to investors, such as specific details of the legal and
28.9% of GDP. institutional framework and investment and fiscal
regimes.
The soundness of the banks is shown in their capital
adequacy (capital to risk-weighted ratio at 12.7%) Overall, strong growth and a stable macroeconomic
and assets portfolio quality (gross non-performing environment in the general context of improving
loans representing just 7.7% of total loans), as of institutional quality and security are key contributing
mid-2019, according to the subregional central factors that make Burkina Faso one of the
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

bank, the Banque Centrale des Etats de l’Afrique de favourable subregional destinations for international
l’Ouest. investors.

92
MANGO IN BURKINA FASO: AN OVERVIEW

According to Association Interprofessionnelle Valencia, Lippens and Springfels. In Hauts-Bassins


Mangue du Burkina (APROMAB), the mango and Cascades, the leading producing regions, the
sector generates a turnover of more than XOF 15 Lippens variety is the most widely cultivated (more
billion per year. Mango remains the top fruit in than 35% of the acreage), as it is very appreciated
Burkina Faso and constitutes 56% of national fruit by local consumers and is suitable for drying. The
production.106 In 2017, mango was the 7th export Amélie variety represents approximately 21% of the
product from Burkina Faso. total number of trees, the Brooks variety 17% and
Kent variety 4.5%.107 Hauts-Bassins and Cascades
An estimated 33,700 ha, spread over eight provinces, have the highest yields and are specialists in plant
are cultivated with mango trees, of which 1,255 ha production. Most orchards are multi-varietal, except
are industrial orchards. Annual mango production in Hauts-Bassins, where 43.5% are of single variety.
is 150,000–250,000 tons/year in the last five years, The Hauts-Bassins and Cascades regions are also
and relies mostly on small-scale producers (15,000– the first in terms of mango plantation renewal, with
20,000 farmers). In addition, the mango value chain average new plantation being every three years.
includes 14 international exporters, 76 drying units, Organic certification accounts for approximately
an industrial processing unit (DAFANI) and five pack 10% of the total annual production.
houses. The value chain generates approximately
2,000 jobs outside producers. Mango harvesting in Burkina Faso is late February
to early August. Amélie is an early, relatively small
Mango is mainly produced in the western regions variety with a green/green-yellow skin. The harvest
of Burkina Faso: Boucle du Mouhoun (12,000 tons), period for the Amélie variety is from the end of
Cascades (60,000 tons), Centre-Ouest (15,000 tons) February to April, when Kent exports start. Kent
and Hauts-Bassins (200,000 tons). The provinces of is a larger variety, partially red when ripe, with a
Kénédougou and Houet in Hauts-Bassins, followed long shelf life. Due to the vagaries of the weather
by the Comoé in Cascades, are the main producing and fruit flies, late-maturing mango varieties are
provinces. In Centre-Ouest, mango production is experiencing a shortening of the harvest period and
mainly located in the Sanguié and Boulkiemdé cannot reach August (in the past 10 years).
provinces. There are also new areas where orchards
are being developed: Ziro and Sissili provinces in Most of the annual production is consumed fresh
Centre-Ouest and Nahouri in Centre-Sud. locally; less than 20% of national production is
processed into dried mangoes or juice/pulp, and
Mango varieties produced and exported from fresh mango exports were approximately 3%–4% of
Burkina Faso include Kent, Amélie, Brooks, Keitt, national production in 2016–20.

Figure 39: Mango production by region in Burkina Faso

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Hauts-Bassins and Cascades regions


main area of commercial mango production

Centre-Ouest and Boucle du Mouhoun regions


other areas of commercial mango production

All other regions of Burkina except Sahel region


minor production areas
12,000 t

15,000 t
200,000 t

60,000 t

Source: Consultants, based on industry interviews.

106 Office of Geography of Burkina (BGB).


107 Rapport Inventaire des vergers du Burkina Faso, Direction Générale des Etudes et des Statistiques Sectorielles DGESS, APROMAB, DDC (2017). 93
Table 14: Production and export calendar in Burkina Faso
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Production season
Amélie
Lippens
Varietie

Brooks
Kent
Keitt
Valencia

Burkina Faso is the leader in West Africa’s dried generated XOF 4.32 billion in 2020, just behind
mango sector, and generated XOF 11.6 billion in fresh mango export (XOF 4.8 billion). Juice/pulp
2020 (2,900 tons exported in 2020). However, the processing is led by a few industrial units (DAFANI.
mango puree/juice industry has the greatest growth SA, Delicio, and Twellium Industries) and local
in the Burkinabè mango sector in recent years. It artisanal units (Eva, Agro Déogracias, and Dioma).

Figure 40: Production outlet and quantity of exported mango from Burkina Faso (in tons)

Outlets of the marketed production 2019 Exported mango products 2019

Processing Fresh exports Dried


Processing
(puree 8,000 mango
(dried mango)
and juice) 2,900
29,000
9,000

Puree Fresh
Fresh and 8,000
domestic juice
consumption 500

20,000

Source: Consultant, based on data from customs and industry.


WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Figure 41: Evolution of Burkinabè mango exports by product in 2011–20 (in tons)

Exports of dry, fresh and fresh cut mango from Burkina Faso by main destinations

12000

10000

8000

6000

4000

2000

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*

To EU27 To rest of Europe To Morocco To rest of the World (US, Turkey, etc.)

94 Source: Consultants, based on ITC Trade Map data.


The main export destinations for fresh mango MANGO VALUE CHAIN AND STAKEHOLDERS
(mostly Amélie and Kent) are Western Europe
(France, the Netherlands, Germany, Belgium and
England) and West Africa (Niger and Ghana). Export PRODUCERS
of fresh mango is mid-February (with early variety
Amélie) to June (with late variety Keitt). There Mango is mainly produced by smallholders
are also continuous exchanges of fresh mangoes (estimated to be between 15,000 and 20,000)
between Mali and Burkina Faso and Burkina Faso for approximately 33,000 ha. A large number of
and Cote d’Ivoire based on the timing and the type these producers are organized in cooperatives or
of varieties. producers’ associations, which play a big role in
marketing the harvests to the processing units.
Dried mango exports are April to December thanks Alongside small producers, the Programme
to the construction of dried mango reconditioning d’appui aux filières agro-sylvo-Pastorales (PAFASP)
centres and cold rooms. While Burkina Faso is a net supported 1,000 ha of industrial plantations with
exporter of dried mango, it should be noted that irrigation in 2015. Approximately 10% of the
it imports 150 tons to 200 tons of dried mango national production is organic certified.
from Mali and Côte d’Ivoire to be reconditioned
and re-exported, making this country and the city
of Bobo-Dioulasso the main mango cluster in the TRACKERS
region. Mango juice and puree are also traded with
neighbouring countries, though not quantified: Trackers can be individuals or formal/informal
mango pulp is imported from Mali and mango associations. It is a profession dominated by women,
juice leaves Burkina Faso to other neighbouring who work in collaboration with wholesalers, exporters
countries. Mango juices are mainly consumed locally and processing structures that are usually located in
in urban areas and are sold in stores, restaurants, Bobo-Dioulasso, Banfora, Orodara and Ouagadougou.
supermarkets and beverage outlets. Only 5% Fresh mangoes are transported in bulk or in cartons
of dried mangoes produced in Burkina Faso are to the main consumption hubs (urban areas). Trucks
consumed locally (supermarkets, hotels and street ensure transport through the main corridors to serve
vendors).108 the nine regions of low production. These trucks
supply the orchards or the various fruit markets
built in Bobo-Dioulasso, Banfora, Orodara, Sindou
and Moussodougou. In these regions, fresh mango
wholesalers resell the mangoes through reseller
networks composed of women specialized in selling
fruits. These fruits are displayed outdoors on tables in
the street in cities for retail.

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


PROCESSORS

Four companies do industrial and semi-industrial


processing of mangoes: DAFANI.SA (puree/juice),
Délicio (juice), Twellium Industries (juice and soft
drinks) and Timini SA (dried mango and coconut).
A fifth industrial initiative with local capital is
underway, but has not yet started. Apart from
Délicio, all of these companies have more than XOF
2 billion turnover per year. DAFANI S.A has a mango
pulp production capacity of 5,000 tons/year. All
these companies experienced an improvement of
their sales and turnover in the last three years and
have been able to steadily invest in production tools
and develop new products. Moreover, new foreign
industrial investors have recently arrived with more
ambitious schemes, aiming to offer a wider array of
products.

108 Rapports atelier bilan mangue, APROMAB. 95


DAFANI.SA and Timini SA get 80% of their raw – PTRAMAB) and exporters (Association des
material from independent producers and Producteurs et Exportateurs de la Mangue du
cooperatives, with the balance supplied by Burkina – APEMAB). The role of these sectoral
commercial intermediaries (trackers). Delicio obtains organizations is to defend the interests of their
its supplies mainly through intermediaries, and members, and to create and share information and
Twellium buys puree from DAFANI.SA, as well as strengthen the capacities of members. Since 2014,
puree industrialists from Mali for juice production. APROMAB has successfully organized the mango
assessment workshop that collects and validates
Alongside the large companies, there are nearly data on the mango sector.
100 artisanal processing units producing dried
mangoes or mango juice/puree. These companies
can have very different profiles, from individual to PUBLIC SERVICES
limited liability companies and associations, and
variable turnover (from XOF 5 million to more than The Chambre de commerce et d’industrie du
XOF 500 million). These businesses use manual and Burkina Faso (CCI-BF), which is a consular body,
labour-intensive techniques for drying and pressing supports the State and actors by advocating
processes. However, some upgrades have been to facilitate administrative procedures. It also
noticed in recent years for some of them with the develops structuring projects for the sector (cluster
use of stainless steel materials and the integration development, training programme and management
of HACCP principles. Dried mango production of competitive funds for the sector).
capacity ranges are 30–50 tons/year for the small
cooperatives (COOPAKE, and UPROMABIO) to 700–
800 tons/year for bigger organizations (GEBANA, INFRASTRUCTURE
and Timini SA).
Burkina Faso being a landlocked country, the main
ports used are the ports of Abidjan (Côte d’Ivoire),
EXPORTERS Lomé (Togo), Tema (Ghana) and Cotonou (Benin).
The main airports used are in Bobo-Dioulasso and
Burkina Faso has seven fruit pack houses, most of Ouagadougou, all within Burkina Faso territory.
them located in Bobo-Dioulasso and Banfora (Sanlé Some exporters use the more developed Bamako
Séchage Export, Ranch du Koba, Société de gestion (Mali) airport for airfreight.
des terminaux fruitiers (STGF), Fruiteq, HOUET Select,
BoniFruits, etc.). More than 10,000 tons of fresh There is a dry port in Bobo-Dioulasso, and all
mango transits from these packing centres to Europe industrial and semi-industrial companies rely on
and North Africa. These facilities are built or managed truckers’ services to transport the raw material
by private owners or concessionaires chosen by the and their final products. The three main transport
government, and they provide services to more than corridors to connect Burkina Faso to the coast
20 amateur exporters from Burkina Faso. After the are Tema (Ghana), Lomé (Togo) and Abidjan (Côte
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

mango campaign, the conditioning infrastructures d’Ivoire). Burkina Faso’s transit corridors are among
are used for cashew kernels and for fresh vegetables the most expensive and slowest in the world, and
(potatoes and onions, etc.). Fresh mango export the proliferation of procedures associated with weak
capacity ranges from 200–300 tons/year for smaller transport infrastructure has made the corridors non-
organizations (FASO MANGORO, and GTT export) competitive. The presence of trucking monopolies at
to 1,500–3,000 tons/year for bigger ones (STGF, ports of entry further adds to transportation costs
and Ranch du Koba). Some fresh mango exporting through inefficient services.
companies also dry mango for the international
market (Ranch du Koba, Agro Burkina, Sanlé Séchage Cold storage rooms are available near Ouagadougou
Export, Burkinature, and FASO MANGORO). and Bobo-Dioulasso airports in order to facilitate
the storage of fresh products as well as their export
and import. Some cities, such as Loumbila, also have
MANGO SECTOR ORGANIZATIONS cold storage (4,080 m2 and 1,760 tons) newly built
by the State. In order to enable mangoes to reach
Association Interprofessionnelle Mangue du these points, government and private sector actors
Burkina (APROMAB) is the umbrella organization built secondary infrastructures in the production
for the three organizations that bring together areas. These are the decentralized fruit markets in
producers (Union Nationale des Producteurs de la Orodara, Sindou, Banfora, Moussodougou and Bobo-
Mangue du Burkina), processors (La Professionnelle Dioulasso. The fruit market in Bobo-Dioulasso is the
de la Transformation de la Mangue du Burkina largest and most animated.
96
INVESTING IN MANGO IN BURKINA FASO: KEY FIGURES

Input supply Processing


Number of mango plant nurseries within Share of local processing (on commercial
the country: 70 nurseries on 6 ha spread production): 57%
across three regions (Hauts-Bassins,
Main process: Dried mango for diversified
Cascades and Centre-Ouest).
export market
Number of suppliers of fertilizer/
Number of industrial processing companies:
phytosanitary treatments within the country:
5
10
Number of suppliers of organic fertilizers/
phytosanitary treatment within the country:
Investment indicators
2 Cost of land in rural area: XOF 500/m²
($9,101.7/ha)
Number of national manufacturers of
mango packaging (cartoons and paper kraft Cost of land in urban area (industrial zone):
cardboards, etc.): 1 XOF 15,000/m2 ($270,000/ha)
Cost of power (peak hour): XOF 118 /kWh
($0,214//kWh)
Production
Cost of power (non-peak hours):
Estimated total production: 150,000 tons
XOF 53 /kwh ($0,096/kwh)
Estimated commercial production:
Cost of unskilled labour:
66,000 tons
XOF 35,000/month ($63,71/month)
Number of commercial mango farms
Cost of skilled labour:
(with >1 ha mango orchard): +/- 200
XOF 200,000 /month ($364/month)
Average yield of commercial mango farms:
Cost of transportation:
5 ha (small farms) to 15 ha (big farms)
Bobo-Dioulasso–Abidjan: XOF 115 /kg
Farm gate prices (export varieties): ($4,200/20’ reefer container)
Min.: XOF 40/kg; median: XOF 75/kg;
Enabling Business in Agriculture (EBA 2019)
Max.: XOF 100/kg
score and rank: 35.3 (rank 87/101)
Doing Business (2020) score and rank:
Marketing 51.4 (rank 151/190)
Distance from main production area to
airport: 350 km WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

Distance from main production area to port:


800 km
Number of available platforms/centres for
cleaning/packaging/export: 5
Number of exporting companies: 17
Volume of fresh export in 2020: 39,000 tons
Rejection rate of fresh mango in the EU in
2020: 9%

97
INVESTMENT OPPORTUNITIES IN BURKINA FASO’S MANGO SECTOR

OPPORTUNITY 1: INNOVATIVE PRODUCTION OPPORTUNITY 3: EQUIPMENT AND MAINTENANCE


SCHEMES SERVICES

In the context of a dynamic exports and processing Supply of processing equipment and maintenance
sector in Burkina Faso, investment in innovative services for the growing processing sector is a
production models with a part of self-production on great opportunity in Burkina Faso. While the sector
modern and large orchards and a part of outgrowing is already quickly growing, most of the processing
with smallholder farmers in a radius of a few tens of equipment and maintenance services are
kilometres around the plantation can be an excellent imported individually by processing companies.
investment. The main plantation can be used as Supplying such equipment locally could be
a training/demonstration centre to upgrade the very lucrative. In addition, Burkina Faso’s
production and harvesting skills of the small farmers position in the centre of the subregion
as well as a platform for sorting and packaging would allow such companies to
before export and delivery to processing plants. easily sell their equipment and
maintenance services in
neighbouring countries
OPPORTUNITY 2: VALORIZATION OF MANGO (Ghana, Côte d’Ivoire,
BY-PRODUCTS AND WASTE Mali, Togo and Benin).

With the strong growth of mango processing in


Burkina Faso, the quantity of mango waste has been
growing fast. Mango rejections, peels and kernels
are almost always evacuated as waste, while they
could be used for energy production purposes in a
landlocked country with high fuel costs. Investing in
waste/by-product valorization could be fruitful and
could help strengthen and diversify Burkina Faso’s
dynamic mango industry ecosystem.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

98
INVESTMENT AND MANGO SECTOR SUPPORT STRUCTURE AND PROGRAMMES

Table 15: Investment and mango sector support in Burkina Faso


Structures Status Description E-mail Phone Location
APEX Public Burkina Faso’s info@apexb.bf (+226) Ouagadougou et
export promotion 25311300/01 Bobo Dioulasso
agency
CCI-BF Public/private Chamber of info@cci.bf (226) 25 30 61 Siège
commerce and 14/15 Ouagadougou,
industry (226) 25 31 12 Avenue de Lyon
66/67 01 BP 502
Ouagadougou 01
Agence Public Burkina Faso info@ (+226) 25 37 44 Ouagadougou
Burkinabè des investment agency investburkina.com 49
Investissements
(ABI)
Association Private National business apromaburkina@ (+226) 20 98 09 Bobo-Dioulasso
Interprofessionnelle sector association yahoo.fr 89
Mangue du Burkina (+226) 78 83 59
(APROMAB) 00
(+226) 64 51 19
63
Agrodev Services Private Business plan adslburkina@gmai. (+226)64316837 Bobo-Dioulasso
studies and soft com
advice
Promotion of
incubators
Centre for the Public Markets studies +31 (0)88 60 Amsterdam
Promotion of and coaching 24300 P.O. Box 93144
Imports (CBI) programme
2509 AC The
Hague
The Netherlands
Visiting address
Prinses Beatrixlaan
2
2595 AL The
Hague
The Netherlands
Projet de Public programme Agricultural (+226) 25 37 47 Ouagadougou

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


Résilience et de resilience and 00
Compétitivité competitiveness
Agricole (PReCA) project funded by
World Bank
Le programme Swiss agency Programme Pour informations (+226) 55 70 50 Ouagadougou
d'Appui à la including mango burkinafaso@ 56
Promotion de helvetas.org
l'Entrepreneuriat
Agricole (PAPEA) Nikolaas Pater
nikolass.pater@
helvetas.org
Website: www.
helvetas.org/
burkinafaso
Comité de Liaison Private European Develop inclusive, Coleacp.org +33 (0)1 41 80 Brussels
Europe Afrique fruits agency sustainable 02 10 Paris
Caraïbes Pacifique trade in fruit & +32 (0)2 508 10
(COLEACP) vegetables and Nairobi
90
food products,
focusing on the +254 721 739 677
ACP countries

99
SWOT OF BURKINA FASO’S MANGO SECTOR

Figure 42: SWOT of Burkina Faso’s mango sector


Post-harvest and Organization and
Mango production Marketing Services
processing structuring
Strengths
ƒ Good spread of ƒ Experienced sector in ƒ Growing demand in ƒ Clear legislative ƒ Presence of
production (from dried products the European market framework service providers
February to ƒ Existence of and in the subregion ƒ Existence of in the various
September) specialized equipment ƒ Burkina’s export professional group fields led by the
ƒ High potential to manufacturers in season ahead of structures actors of the
increase production, Burkina Faso competing origins mango sector
ƒ Availability
due to ongoing ƒ Cheap labour ƒ Rehabilitation of the of actors to
programmes for fruit terminal and comply with
orchard renewals ƒ Existing potential
for fresh mango and the potential for the the regulatory
mango products sale of products via provisions relating
exports Abidjan to professional
ƒ Dynamic exporting organizations
ƒ Good concentration
of certified packaging sector
facilities in Bobo- ƒ Good knowledge of
Dioulasso, Banfora market requirements
and Orodara
(production areas)
Weaknesses
ƒ Extensive method of ƒ Poor mastery of ƒ Cost of arbitrary tolls ƒ Lack of trust ƒ Insufficient
production, old and harvesting and post- and/or taxes along between actors financing of the
small orchards harvest techniques the road penalizes ƒ Very weak sector
ƒ Low access to ƒ Low availability of traders who want to institutional and ƒ Lack of specific
agricultural inputs and storage facilities for reach markets management and global
materials fresh mango ƒ High cost of packaging capacity of information on
ƒ Low proportion and ƒ Expensive and difficult for export (because it professional the sector
irregular production to find packaging on is subject to VAT) organizations ƒ Low level of
of coloured varieties the market (VAT on ƒ Difficulty for operators ƒ Weak technical research and
(25%) for export packaging) to comply with EU management extension
ƒ High cost of ƒ High cost of glass legislation capacity of the support for the
certification or polyethylene ƒ High cost of export organizations improvement
terephthalate (PET) logistics set up of production
packaging for juices ƒ Weak techniques and
ƒ Insufficient plant material
and jams (more than commercial contractualization
40% of turnover) prospecting between actors
ƒ Lack of market ƒ Lack of marketing
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

knowledge for strategy


processed mangoes,
both for the domestic
market and for export
(demand, quality
requirements and
competitiveness
compared to other
origins)
ƒ High cost of packaging
centres and cold room
storage
Opportunities
ƒ High potential for ƒ Openness of ƒ Growing organic ƒ Beginning of the
organic certification stakeholders to market in Europe structuring of
experiment with new service providers
technologies
Threats
ƒ Pests and diseases ƒ Strong fresh mango
(fruit fly and exports competition
mealybug) from other West
ƒ Farm gate price African countries
fluctuation
100
Source: Consultants.
3.5. GHANA

COUNTRY OVERVIEW Ghana – key facts


Capital city Accra
Ghana, whose motto is ‘Freedom and Justice’, is Area 227,540
located between Cote d’Ivoire in the west, Burkina Population, total 30.4 million
Faso in the north, Togo in the east and the Gulf of
0–14 years 37.4%
Guinea in the south. Ghana’s documented history
15–65 years 59.5%
dates back to the eleventh century. Since then,
various kingdoms and empires have emerged, the Youth literacy 92.5%
(15–24 years)
most powerful and well-known being the Kingdom
of Dagbon and the Ashanti Empire. The colonial Male 92.8%
period started in the fifteenth century, first with Female 92.2%
the Portuguese, then other European powers, and GDP, nominal $67 billion
finally with the British. The latter divided Ghana GDP growth, real 6.1%
into four separate British colonial territories: Gold (2014–19)
Coast, Ashanti, the Northern Territories and British FDI, inflows $2.3 billion
Togoland. These territories were unified when the
Gross domestic private $9.6 billion
country gained independence in 1957 (initially as an investment
independent dominion within the Commonwealth of Employment to 64.9%
Nations). Since April 1992 when the country adopted population ratio
a new constitution, an increasingly democratic, (+15years)
peaceful and stable subregional power has emerged Employment to 37.5%
within the political framework of a presidential population ratio
constitutional democracy with a parliamentary (15–24 years)
multi-party system.109 Exports of G&S, 2014– 36% of GDP (24.1)
19 (billion USD, 2019)
The country’s location only a few degrees north of Main products Pearls, precious stones and
metals; mineral fuels and oils;
the equator is synonymous with a warm climate.
cocoa
Temperatures culminate at 30°C–31oC between
Imports of G&S, 2014– 35.4% of GDP (23.7)
December and March, corresponding to the
19 (billion USD, 2019)
harmattan (dry desert wind) blowing in the north-
Main products Vehicles; electrical machinery and
east of the country. The south enjoys a tropical
equipment; cereals
climate with a longer rainy season (March to
Inflation 7.2%
November).
Bank credit to private 12.4% of GDP
sector
Most of the 31 million Ghanaians (57%) live in urban
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
areas, mostly in Accra (a population of 5.1 million), Govt. expenditure $14.6 billion
Kumasi (3.3 million), and Tamale (0.5 million). The Govt. revenue $9.6 billion
richness of the culture and traditions rests in part Total public debt $42.3 billion
on the warmth, friendliness and a strong sense of Currency Cedi (GHS)
community of the people, as well as approximately Languages English (official), Akan, Ewe,
50 local languages, of which the 11 most widely Dagbani, Dangme
spoken are taught in school (e.g. Akan, Ewe, Ga,
Note: Data is for the most recent years, since 2017.
Dagaare and Dagbani). This is in addition to English,
Source: World Bank; IMF; UNCTAD; Comtrade.
Ghana’s official language.

109 ‘Subregion’ denotes West Africa throughout the text, while ‘region’ refers to the whole African continent. 101
MOST COMPETITIVE ECONOMY IN WEST AFRICA STRONG MARKET POTENTIALS AND LOWEST
COUNTRY RISK IN WEST AFRICA
Globally, Ghana comes 111th in the 2019 Global
Competitiveness Index, and 8th on the continent According to the 2020 Market Potential Index,
and 1st in West Africa, with an overall score of developed by the Michigan State University’s
51.2/100. This performance owes to its strong International Business Center, Ghana is ranked 76th
institutions and the largest extent of ICT adoption globally, 5th in Africa (with the Federal Democratic
in West Africa, in addition to the depth of skills and Republic of Ethiopia, the United Republic of
innovation capacity where the country ranks 2nd in Tanzania, and Morocco) and 3rd in West Africa. The
the subregion. contributing factors are the extent of economic
freedom (the highest in West Africa), market
receptivity (the strongest in the subregion) and
AMONG THE MOST INNOVATIVE AFRICAN country risk (the lowest in the subregion).
ECONOMIES

Ghana is the 108th most innovative economy in the THE BEST COUNTRY FOR BUSINESS IN WEST
world, the 13th in Africa and the 3rd in West Africa, AFRICA
according to the 2020 Global Innovation Index
(co-published by Cornell University, INSEAD and the Ghana is considered the 94th Best Country
World Intellectual Property Organization), with an for Business worldwide, 9th in Africa and 1st in
overall score of 22.3/100. The contributing factors West Africa, according to Forbes Magazine. This
are a supportive infrastructure network and the performance is a combined result of the country’s
extent of creative outputs, in which the country GDP growth, GDP per capita, trade balance and
ranks 2nd in the subregion. population size. In addition, the World Bank ranks
the country 118th globally, 17th in Africa and 3rd in
the West African subregion when it comes to the
STRONG INSTITUTIONS ease of which business is conducted, with a score
of 60/100.The dimensions that stand out relate
The strength of the political institutions is indicated to getting credit (the easiest in West Africa) and
by the World Bank’s Governance Indicators, which protection offered to minority investors (the 2nd
rank Ghana 100th in the world, 11th in Africa and 3rd strongest).
in West Africa. The country comes 1st in West Africa
for regulatory quality, 2nd for rule of law, control of
corruption and voice and accountability, and 3rd for
political stability and no violence, and government
effectiveness.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

HIGH-QUALITY INFRASTRUCTURE

The African Development Bank’s survey on


infrastructure ranks the country 11th in Africa and
2nd in West Africa, with an overall score of 30.1/100.
Water supply and sanitation, as well as transport
appear to be the most developed segments of the
country’s overall infrastructure. Furthermore, the
World Bank’s Logistics Index puts the country at the
106th position worldwide, 16th in Africa and 5th in the
subregion. The overall score is 2.57/5. The country
comes 2nd in West Africa when it comes to the
competence and quality of logistics services, and 3rd
for the efficiency of customs clearance process.

102
INVESTING AND DOING BUSINESS IN GHANA

STRONG AND RESILIENT ECONOMY incorporation and temporary business operating


permit certificates, all from the RGD;
Ghana’s economy is the second largest in West (5) Receive inspection of work premises by the
Africa, and has enjoyed a robust growth averaging Metropolitan Authority, which has already
6.1% in the last five years in the context of automatically received information on the
increasingly favourable macroeconomic and registered business (address and phone number);
financing conditions. Large endowments of gold a visit is then scheduled to confirm the category
(Africa’s biggest gold miner after South Africa), of the business;
cocoa (world’s second largest cocoa production) and,
more recently, oil form the cornerstone of Ghana’s (6) Obtain final business operating permit upon
economy have contributed to the economic boom. payment of fees related to the permit at the
However, the ongoing COVID-19 pandemic has Metropolitan Authority;
reduced growth to 0.41% in 2020, compared to the (7) Deposit the 100 GHS minimum paid-in capital
initial projection of 5.8%, as a result of ‘lower oil in a bank account and the following documents
production, weak global aggregate demand, global are requested: copies of company regulations,
supply chain disruptions, and a steep decline in the certificate of incorporation, the certificate
international travel, trade and retail and hospitality to commence business and signatures of the
services’. However, the economy is expected to authorized company representative; some
rebound in 2021, with a projected growth rate of banks may conduct physical inspection of
5.9%, suggesting a relatively strong resilience of the company’s address, and most require
the economy (the country is considered as the most introductory letters from the solicitors in order to
resilient economy in West Africa, according to the open an account, as part of the ‘KYC’ (know your
2018 African Attractiveness Index). customer) procedures;
(8) Apply for social security at the Social Security
and National Insurance Trust office; to do so, the
FRIENDLY AND LOW-COST BUSINESS
company must provide a list of its employees,
ENVIRONMENT
their respective salaries and social security
numbers, and the company’s certificate of
Starting a business is among the least costly in incorporation.
Africa, with a paid-in minimum capital requirement
of just 100 GHS ($17) and fees amounting to
390 GHS plus 0.5% of the stated capital as a These procedures take approximately 13 days to
commencement tax. The process involves eight complete, well below the 21.5 sub-Saharan African
procedures: average.
(1) Obtain a tax identification number (TIN)
Furthermore, obtaining construction permits is
from the Registrar-General’s Department (RGD)
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
also among the cheapest in West Africa, with an
or Ghana Revenue Authority; although necessary
estimated cost of 3.5% of the warehouse value.
to obtain before proceeding with the registration,
it can be done at the time of the business For a standardized warehouse, the estimated value
registration by submitting the forms and required is 495,380 GHS ($84,215). Registering property
documents at the RGD; once validated, the involves five procedures, from obtaining a title
applicant can collect the document; transfer form to the issuance of title certificate
at the Land Registration Division of the Lands
(2) Check for availability of company name and Commission. The procedures take 33 days at a cost
submit company documents to obtain business of 6.1% of the property value.
operation permit and incorporation certificates at
the RGD; applicants can request the search to be The rental price of a typical four-bedroom exclusive
performed at the Companies Registry to ascertain residential house is approximately 26,470.6 GHS
the availability of the proposed name; the RGD can ($4,500) per month. For non-residential properties,
then reserve the name pending registration of the the price ranges from 58.8 GHS ($10) per square
company; metre per month for industrial property to 235.3
(3) A Commissioner of Oaths, within the RGD, GHS ($40) for retail space and 205.9 GHS ($35) for
authenticates forms required for the certificate an office space.
to commence business;
Equal treatment is guaranteed by law to national
(4) Obtain, within 28 days, the certificate to
and foreign investors when it comes to all business-
commence business, the certificate of
related procedures, including the acquisition, 103
registration or rental of any property. The infrastructure network is relatively dense
and varied. There were 72,381 km of road network
The labour force, estimated at 12.9 million, is in Ghana in 2017, with 14,873 km being trunk road
relatively skilled and vibrant. The country tops the (used for long-distance travel), 15,463 km being
World Bank’s Human Capital Index in West Africa, urban roads and the remaining 42,045 km being
with a score 0.44/1, which is suggestive of a large feeder roads (turnpikes).
variety of relatively strong skill sets. Visa rules
applied to investors and workers, similar to those With more than 3 million passengers in 2019 and
in the ECOWAS region, grant a duration of stay that more than 23 passenger and cargo airlines, the
matches that of the business or the employment, Kotoka International Airport in Accra is the biggest
with no further limitations. airport in Ghana. In 2019–20, it was rated the Best
Airport in Africa by the Airports Council International
The minimum wage is $45.1 per month. Salaries (ACI), a global trade representative of the world’s
typically range between 1,280 GHS ($218) and 22,600 airport authorities. The Kumasi Airport, more
GHS ($3,842), depending on the skills and industries, and domestically oriented, is the second busiest airport,
the average worker earns 5,070 GHS ($862) per month. with an estimated 376,823 passengers in 2019.
These payments include housing, transport, and other
benefits such as social security and pensions. The railway system comprises more than 900 km
of tracks and is publicly managed by the Ghana
The country’s electricity system is ranked 1st Railway Development Authority. It connects major
in the subregion by the World Bank (5th on the cities, resource-producing areas, the ports, and
subcontinent), largely as a result the reliability soon neighbouring countries such as Burkina Faso,
of supply and transparency of tariffs. Obtaining a as part of the ongoing 10-year rehabilitation and
connection takes a typical business approximately construction project that seeks to expand the
55 days, and the process involves hiring a registered network to 4,500 km.
electrical contractor and receiving an internal wiring
inspection, submitting an application to Power Of Ghana’s five major ports, the seaports and
Distribution Services Ghana Ltd, receiving site container terminals in Accra and Tema are the most
inspection by Power Distribution Services Ghana Ltd important. Tema, the largest, is also home to one
and awaiting estimate, and then receiving external of the country’s four SEZs, or export processing
works, meter installation and electricity flow. Total zones. The port system handles a combined
fees are 62,619.4 GHS ($10,645.3). Once connected, transit traffic of more than 1.5 million tons, as
businesses pay a price of 1.39 GHS ($0.24) per kWh. well as a transhipment traffic of 602,778 tons.
The corresponding soft infrastructure is well rated
Water connection can be obtained within a month by the World Bank’s Logistics Performance Index,
from Ghana Water Company Limited, at a total cost with, for example, the customs clearance process
of 1,000 GHS ($170). At an average cost of 4 GHS being among the most efficient in the subregion. The
($0.68) per cubic metre applied to the bi-monthly regional scope of these port infrastructures (being
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

consumption, basic drinking water services are used by landlocked countries such as Burkina Faso)
accessible to more than 80% of the total population contributes to making Ghana a trade and logistic hub
(93% in urban areas). in West Africa.

Business tax and mandatory contributions in Customs duties are governed by the subregional
Ghana include a corporate income tax (statutory CET, with five tariff bands: essential social goods
rate of 25%), social security contribution (13% of such as medicines (0%); goods of primary necessity,
employees’ gross salaries), value-added tax (12.5%), raw goods and capital goods (5%); intermediate
tax on interest earned (8%), and contribution to goods and inputs (10%); final consumption goods
the Ghana Education Trust Fund Levy (GETFL) and or finished goods (20%); and specific goods for
National Health Insurance Levy, municipal tax, fuel economic development (35%). Additional trade-
tax, and property tax at variable rates. These eight related measures aimed at protecting some
business-related taxes and contributions necessitate industries and guaranteeing fair competition
36 payments in a typical year, take approximately throughout the liberalized subregional markets
226 hours per year and cost an average of 55.4% include safeguard measures, anti-dumping
of corporate profit. measures, anti-subsidy and countervailing measures
and supplementary protection measures.
In addition, individual income tax is 0% (annual
chargeable income of less than 3,456 GHS – Ghana’s banking and financial sector is relatively
$587.5 GHS) to a maximum of 30% (240,001 GHS – sound, stable and open. It comprises 28 banks of
104 $40,800.2 and more). national, continental and global scope, and the Bank
of Ghana serves as the country’s monetary authority. There are great incentives for foreign
The system’s soundness shows in the relatively low investment, especially in opportunity-filled sectors
incidence of non-performing loans (NPLs) of banks, such as agriculture and agroprocessing, and textiles
which represents 14.5% of total loans as of March and garments. They include: (i) reduced corporate
2020, down from 18.8% in 2019. While it is expected income tax of 0%–22%; (ii) reduced excise duty for
that the pandemic can derail the observed year-to- increasing the use of local raw material; and (iii)
year slowdown in NPLs, prudent risk management exemption from customs import duties for plant,
policies are likely to help improve asset quality risks machinery, equipment and parts.
in the medium term. Further to the banking industry’s
solvency, the capital adequacy ratio is 21.1%, well The Ghana Investment Promotion Centre (GIPC)
above the revised regulatory minimum of 11.5%, while is the country’s single window for all investors,
bank profitability has increased in the last three years. domestic and foreign. It is the government agency
in charge of showcasing Ghana as an influential
The openness of the banking and financial industry leader for doing business in Africa. In addition to
means that any domestic and foreign business providing comprehensive and up-to-date information
and individual can hold a foreign currency bank on the type of investment incentives, their eligibility
account, and international transfers (corporate criteria, and relevant laws and regulations, the
revenue and remittances, etc.) are made easily. centre is a place to register a business and most
The country has opted for a flexible exchange rate administrative procedures can be done there.
regime and, in the last five years, currency has been
on a depreciating trend, from $0.26 in April 2016 to In summary, the Ghanaian economy’s dynamism,
$0.17 in April 2021, suggesting an increased price resilience, vibrancy and innovative drive, along with
competitiveness of the country’s exports that has the high quality and low cost of labour and energy
resulted in trade surpluses. and the business environment’s friendliness and
conduciveness (among the best in Africa), constitute
The active Ghana Stock Exchange provides key reasons why Ghana should undoubtedly be
facilities and framework to the general Ghanaian counted as one of the most favourable African
and non-Ghanaian public for the purchase and destinations for foreign investors.
sales of bonds, shares and other securities. As of
June 2021, 37 companies are listed. They comprise
national, regional and non-African companies,
which can raise capital relatively easily.

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

105
MANGO IN GHANA: AN OVERVIEW

Mango is one of the key products of Ghana’s fruit approximately 2,000–3,000 mango producers, and
sector, alongside pineapple, citrus and banana. medium-scale farms (12–40 ha) and commercial
The mango value chain is estimated at $28 million, farms (more than 40 ha) dominate the production.
representing 7% of the total revenue generated The average yield is 12–15 tons/ha. Farmers
from the horticulture industry.110 introduced to good practices and favourable climatic
conditions are able to produce 5–6 tons per acre.
Annual mango production has been stable in the Competition with other crops, such as cocoa, coconut
last years and is estimated to be 98,500 tons/ and cashew, is limited and producers tend to switch
year. Mangoes are produced in three main areas: to mango production due to the revenue involved.
the southern belt (Eastern, Greater Accra and
Volta Regions, where the export-oriented mango Mango producers in the southern belt have two
cultivation first started), the middle belt (Bono East, harvesting seasons, and there is only one harvesting
Bono and Ashanti Regions) and the northern belt season in the middle and transition belts. The
(Northern, Upper East and Upper West Regions, short harvest season is November to February
where commercial orchards have taken root since and the main harvest season is April to August.
early 2000). Two dominant mango varieties are cultivated in
Ghana – Keitt (approximatively 80% of mango
Approximately 81,000 ha are under mango production) and Kent (10%) – and 14 other varieties
cultivation in Ghana. Though large orchards are are produced locally (Palmer, Tommy Atkins and Zill,
established, small-scale familial producers are still etc.), but in low quantities (10%).
the main mango producers in Ghana. There are

Figure 43: Mango production by region in Ghana

Eastern region
main area of commercial mango production 6,000 t

Northern, Brong-Ahafo, Ashanti and


Greater Accra regions
other areas of commercial mango production

All other regionsof Ghana 7,500 t


minor production areas
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

1,000 t
19,000 t

6,000 t

Source: Consultant, based on industry interviews

Table 16: Production and export calendar in Ghana


JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Production season
Regions

South

Middle and
North

106 110 Mango Cluster Diagnostic Study (2020).


The processing industry comprises small-scale United Kingdom and the European Union (Germany,
processors focused on the national market (30–50 the Republic of Italy, and France). Switzerland
units processing less than 100 tons/year) and larger and the Lebanese Republic are also important
processors aiming at the international market (five destinations.
units processing 200–1,600 tons/year). Processed
products are fresh cut mango and dried mango for The Ghanaian mango sector’s key competitive
the international market, and juice for the local advantages are:
market. Supply of other types of products, such as
(1) Geographical proximity to the European and
mango jam, is underdeveloped.
Middle East markets;
Approximately 70% of annual mango production (2) The two harvesting seasons in the southern belt
goes to local markets and supermarkets in regional that gives the opportunity to supply EU markets
capitals, consumed fresh or sold to local processors, when international offer is weak;
which is the most important local outlet. The local (3) The harvest season starts two weeks earlier than
supply does not meet the demand, and companies, in neighbouring countries, giving an edge on the
mainly processing companies (including large international market;
ones such as Blue Skies), import mangoes from
neighbouring countries (Burkina Faso, Benin and (4) Ghana has efficient infrastructures for mango
Togo) and Brazil. exports.

Mango product export volumes are low, though The mango sector’s biggest challenges are:
increasing in the last years, at 1,700–2,200 tons/
(1) Lack of financial resources, which hinders the
year. However, the value generated by mango
mango processing/export sector’s capacity
exports has greatly increased, reaching more
to invest in production activities, renew
than $35 million in 2019, as exports are focused
international certification and meet export
on processed products rather than raw products. quality standard;
On the total annual exports, dried mango accounts
for the largest share (51%), followed by fresh cuts (2) Pests and diseases (fruit fly and black bacterial
(37%) and whole fruits (12%). The main destinations spot disease), as it is costly to keep them under
for exported mango (dried, cut and whole) are the control.

Figure 44: Production outlet and quantity of exported mango from Ghana (in tons)

Outlets of the marketed production 2019 Exported mango products 2019

Processing
(fresh cuts)

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


4,000

Fresh Fresh
Processing exports Fresh exports
(juice) 1,000 domestic 750
8,000 consumption
30,000
Dried
mango
Processing 2,500
Fresh cuts
(dried mango) 1,750
25,000

Source: Consultant, based on industry interviews.

107
Figure 45: Evolution of Ghanaian mango exports by product in 2011–20 (in tons)

Exports of dry, fresh and fresh cut mango from Ghana by main destinations

6000

5000

4000

3000

2000

1000

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*

To UK To EU27 To Near and Middle East To other countries

Source: Consultants, based on ITC Trade Map data.

MANGO VALUE CHAIN AND STAKEHOLDERS

INPUT SUPPLY Farms, Integrated Tamale Fruit Company (ITFC),


Tacks Farms, Ghana Libyan Arab Agricultural
Most (95%) seedlings come from on-farm nurseries, Company (GLAACO), Prudent Farms. Small-
but there are 8–10 commercial plant nurseries in the scale producers with mango plots of 1–4 ha are
country, some of whom provide certified seedlings to the minority (approximately 500). The largest
the mango industries (Vision Mango Nursery, Tiase commercial farms have certifications in order to
Mango Nursery, Improve Mango Nursery and Kodaps meet international standards such as Global G.A.P.
Mango Nursery groups).
Producers’ associations are well structured and can
The Plant Protection and Regulatory Services Directorate provide extension services (good agricultural practices),
(PPRSD) regulates the input sector through the Plant and and manage group certifications (GlobalG.A.P.) and
Fertilizer Act (2010). Approximately 4,000 input dealers product marketing. They buy approximately 20% of the
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

in Ghana provide various inputs, tools and services, such total annual production. Notable associations include
as pesticides and fertilizers, seedlings and land prepara- the Yilo–Krobo Mango Farmers Association, Dangme
tion equipment. Major fertilizer and agrochemical import- West Mango Farmers Association, Manya Krobo
ers in the country are Dizengoff, Agrimat, Sidalco, RMG Mango Farmers Association and the Volta Value Chain
Ghana Ltd, Chemico, Yara Ghana, Afcott Ghana, Louis Cooperative Fruits and Vegetables Union Limited.
Dreyfus Company and Olam Ghana Limited. These prominent groups are located within Ghana’s
coastal savannah ecological zone, in the Greater Accra,
Eastern and Volta Regions. In the middle belt, the
PRODUCTION Mid-Ghana Commercial Mango Growers’ Association,
comprising GlobalG.A.P.-certified mango growers in the
There are approximately 2,000–3,000 mango Ashanti, Bono, Ahafo and Bono East regions, constitute
producers in Ghana, of which 1,000–1,500 have the major bloc for mango production. At the national
medium-scale farms of 12–40 ha, and 300–1,000 level, the Federation of Associations of Ghanaian
are commercial farms with mango acreage of more Exporters coordinates and provides support services to
than 40 ha. Commercial farms include Bomarts the affiliated producers’ associations.

108
The largest producers negotiate prices through pre- companies (with processing capacity of more than
harvest negotiation arrangements with the large 1,000 tons/year).
processing companies, who buy their products from
producer associations through pre-harvest contract Most processing companies rely on manual labour
agreement. and semi-automated machinery (fruit pressers,
electric or gas ovens, and electric pasteurisers),
often locally manufactured. They can employ
AGGREGATORS 10–50 people, with women accounting for 55%
of the workforce. Approximately 3,000 people are
Aggregators are concentrated in the production employed by these processing units in Ghana.
areas, especially in the southern belt, where most of
the production takes place. Most (95%) aggregators According to the data available, large fruit juice
are women who trade fresh mangoes to other producers can reach 500 cartons of 12 bottles
local market women and retailers. They mostly buy (350 ml) per day (e.g. Vintage Farms).
Grades 2 and 3 from farmers in sacks, and channel
approximately 10% of total fresh mango production. Small-scale units can produce approximately 10–100
Their outlets are local markets, and local shops and cartons of juice (12 x 350 ml bottle) per day, while
supermarkets for higher grade. An estimated 40 medium-scale units can produce up to 500 cartons
tons of mango are consumed per regional capital per per day (Vintage Farms). Large-scale processors
season, with consumers’ preference being mostly (Blue Skies, HPW AG, and Peelco) are the main
the Keitt and Kent mango varieties. producers of fresh cuts and dried mango.

Producers’ associations also have an important Most processing companies focus on the domestic
role in fresh product aggregation, representing market and a few (Wad African Foods Limited, HPW
approximately 20% of total annual production. AG, and ITFC) are strictly oriented towards the
Alongside agents of processing and export international market. Many processing companies
companies, they serve as a link between companies cannot afford the quality certifications needed for
and producers for commercial agreements before the export market and only about 10% of them
the harvesting season starts. meet international market quality requirements.
Moreover, labelling and packaging quality is a
Some aggregators, export and processing companies challenge that must be addressed in order to
can pre-finance, and supply inputs and extension reach the international market. However, a few
services to producers in order to assist their local companies (e.g. Vintage Farms) succeeded
production activities. in targeting the West African markets (10,000
cartons of fruit juice sent per month to Burkina
Faso and Nigeria). Large-scale processors
PROCESSING export approximately 90% of their production
to EU countries like Germany, Switzerland, the
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Ghana’s mango processing sector comprises a Netherlands, Italy and France.
variety of stakeholders, with significant differences
in processing capacity, equipment and market Most processing units work at 10%–15% of their
destination. Most processing companies make fruit capacity. Inconsistent supply of raw material is
juices, and dried mango and fresh cuts are mostly one of the problems, as they cannot compete with
produced by medium and large-scale companies, large companies that contract a large number
although smaller processing units are also active in of producers. In order to solve the supply issue,
the drying fruit sector for local markets. Processing some processors (Wad African Foods Limited,
companies making other types of mango product Vintage Farms, Hendy Farms, Joanova Farms, and
are rare, but there are some, such as Hendy Farms, ITFC) have established their own farms in order to
which produces mango hot sauce (up to 10 tons/ ensure constant supply. Farms range from 20 ha
week) for the local market. (e.g. Wad African Foods Limited) to 810 ha (e.g.
ITFC, in addition to the outgrower scheme they
Small-scale and medium-scale processors are the support). Some processors have also initiated
majority (approximately 50–70), and most are outgrower contracts with local farmers to supply
located in the southern belt. Small-scale processing their processing facility (1,300 outgrowers of
units have a processing capacity of 100 tons/year organic mango with ITFC). Small and medium-scale
and medium-scale processing units can reach 1,000 processors also face high production costs and a lack
tons/year. There are 12 large-scale processing of investment, reducing their productivity.

109
EXPORTERS INFRASTRUCTURE

Exporting companies can work on fresh mango and The road infrastructure in the southern belt is good
mango product exports. Most mango exporters and projects in the past decades upgraded 407 km
are not in the production business due to the lack of feeder roads in horticulture production areas.
of capital needed to manage the orchards and The road infrastructures in the middle and northern
supply direct from commercial farms or producers’ belts are more degraded. The main roads used by
associations. mango products are Somanya–Accra, Dodowa–
Accra, Dzodze–Accra, Kintampo–Accra, Sunyani–
Ghana has four exporters with pack houses: Bomarts Accra, Techiman–Accra and Tamale–Accra.
Farms and Akorley pack house in the eastern
region, ITFC in the Savannah Region and Vakpo The Tema port is one of the most efficient ports
pack house in the Volta Region. The Akorley pack in West Africa and has a cold storage facility. The
house was funded by the Millennium Development Kotoka international Airport is equipped with three
Authority (MiDA), owned and used by four mango public pack houses and pre-coolers for perishable
organizations (Lower Manya Krobo Mango Farmers goods.
Association, the Upper Manya Krobo Mango
Farmers Association, the Yilo–Krobo Mango Farmers
Association and the Dangme West Mango Farmers PUBLIC AGENCIES
Association). Farmers from the Volta Region can
also use the facility. Cotton Web Link Portfolio Ltd The Ghanaian Government recently established the
runs the Akorley pack house and ensures that it Tree Crops Development Authority (TCDA), which
meets HACCP requirements. The pack house offers covers cashew, shea, mango, coconut, rubber and
an automated processing service and cold room oil palm. This body is in charge of the regulation and
storage. development of production, processing, trading and
marketing of the six tree crops in Ghana. Through
the Tree Crop Development Fund, TCDA’s tasks
STORAGE FACILITIES include the identification and development of
sustainable sources of funding for the tree
Warehousing available for the mango industry in crop industry, the promotion and support
Ghana is limited. There are only two operational of the industry’s development, the
pack houses in the southern zone, with cold rooms collection of statistical data and
for approximately 20 tons, and a cold storage facility advising the government and
for fruit in Tema. the private sector.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

110
INVESTING IN MANGO IN GHANA: KEY FIGURES

Input supply Processing


Number of mango plant nurseries in the Share of local processing
country: 89 (50 in Greater Accra, 30 in (commercial production): 55%
eastern, 5 in Volta and 4 in Brong Ahafo)
Main process: Dried mango for diversified
Number of suppliers of fertilizer/ export market
phytosanitary treatments in the country: 57
Number of industrial processing companies:
Number of suppliers of organic fertilizers/ 15 (main 5 are Blue Skies, Peelco, Pinora
phytosanitary treatment in the country: 17 Ghana, HPW AG and ITFC)
Number of national manufacturers of
mango packaging (cartoons and kraft paper Investment indicators
cardboards, etc.): 1
Cost of land in rural area (leasing more than
30 years): 30,000 GHS ($5,172) per hectare
Production Cost of land in urban area (industrial zone):
300 GHS to 1,800 GHS/m2 ($500,000–
Estimated total production: 100,000 tons
$3,000,000/ha)
Estimated commercial production:
Cost of power: 0.8 GHS/kWh ($0.14//kWh)
68,000 tons
Cost of unskilled labour: 400 GHS/month
Number of commercial mango farms
($85/month)
(with > 1 ha mango orchard): +/- 450
Cost of skilled labour: 3,000 GHS/month
Average yield of commercial mango farms:
($500/month)
4 tons/ha (small farms) to 7 tons/ha
(big farms) Cost of transportation: from eastern to
Tema: 4,000 GHS ($675) per 20’ reefer;
Farm gate prices (export varieties):
from Brong Ahafo to Tema: 10,000 GHS
Min.: 1 GHS/kg; median: 1.5 GHS/kg; Max.:
($1,700) per 20’ reefer
1.8 GHS/kg
Enabling Business in Agriculture (EBA 2019)
score and rank: 50.49 (rank 72/101)
Marketing
Doing Business (2020) score and rank:
Distance from main production area to 60 (rank 118/190)
airport: 100 km from Somanya to Tema;
400 km from Nkoranza to Tema
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
Distance from main production area to port:
150 km (closest) to 400 km (farthest)
Number of available platforms/centres for
cleaning/packaging/export: 4 (Bomarts
Farms and Akorley in eastern; ITFC in
Savannah; Vakpo pack house in Volta)
Number of exporting companies: 6
Volume of fresh export in 2020: 1,000 tons
Rejection rate in the EU in 2020: 5%

111
INVESTMENT OPPORTUNITIES IN GHANA’S MANGO SECTOR

OPPORTUNITY 1: INNOVATIVE MANGO OPPORTUNITY 2: MANGO AND FRUIT PROCESSING


PRODUCTION IN ASSOCIATION WITH OTHER FRUIT
CROPS It is possible to take advantage of the fruit
processing sector’s fast growth in Ghana by
Innovative production, with intercropping systems investing in processing of puree, juices, slices or
including several fruits to enable continuous dry mango, complemented by the same activities
production throughout the year and supply to the with other fruits (among others, pineapple, coconut,
processing sector with several types of fruits. The guava, papaya, passion fruit and avocado). Ghana
particular climate of central Ghana is extremely provides an attractive agribusiness ecosystem as
suitable for such innovative food production systems well as a highly performing port in Tema thanks
and the strong growth of the fruit processing to recent investments to broaden the port.
sector in the country can be taken as an advantage Political stability, several free trade zones and
to secure an outlet and fix relatively stable very diversified fruit production create an ideal
prices through contract farming or risk sharing environment for mango and fruit processing,
agreements. particularly for export to the rest of the world.

OPPORTUNITY 3: MANGO CULTIVATION WITH


DRIP IRRIGATION

In Ghana, the strong demand for mango from


the processing sector and low supply during the
off-season (particularly February to March and
September to October) makes investing in mango
production very strategic. Thanks to drip irrigation
and floral induction, it is possible to produce
mango in the counter-season in Ghana’s central
and southern dry belt. This production can target
national processors, but also fresh export and
national fresh markets. Investing in intensive, piloted
and precision farming to target the off-season
periods is a strong opportunity investment that
could be linked to other fruits cultivation
presented under the above opportunity.

112
INVESTMENT AND MANGO SECTOR SUPPORT STRUCTURE AND PROGRAMMES

Table 17: Investment and mango sector support structure and programmes
Implementing Funding Geographical
Scope of intervention Project duration
agency agency coverage
Project name: HortiFresh
Netherlands Netherlands Greater Accra, HortiFresh supports the sector through activities Ongoing
Development Government Central, Volta, and funds that contribute to: increasing the value of
Organization Bono exports, both to the EU and to regional markets; and
(SNV) improving quality and value-added in the domestic
market, also aiming to reduce imports. HortiFresh
aims to achieve this through business partnerships
and cluster development activities focusing on
innovation and scaling. Importantly, it will stimulate
the banking sector to develop tailored financial
products for the horticulture sector.
Major activities include: new financial products for
the horticulture sector; individual company support;
commercial agronomic support services; horticulture
cluster development funds; innovation funds; technical
support in business management; trade promotion

Project name: GIZ – Market Oriented Agriculture Programme (MOAP)


GIZ German Nation-wide The MOAP specializes in promotion of the value chains 2004–19
Government for mango, pineapple, citrus fruits and vegetables, as
and the well as rice, sorghum, soya beans, peanut and cashew.
European They have been funded in Bono, Bono East, Ahafo,
Union Eastern, Central and Volta, as well as in the Upper
West and Northern Region since 2017, through EU co-
financing.
Major activities include:
Provision of inputs and services; good agricultural
practices (GAP); processing; marketing and certification

Project name: Ghana Agricultural Sector Investment Programme (GASIP)


Ministry of International Nation-wide The GASIP aims to provide a framework and
Food and Fund for institutional basis for long-term engagement and
Agriculture Agricultural supplementary financing for scaling up investments
(MoFA) Development in private sector-led pro-poor agricultural value chain
(IFAD) development.
Major activities include: WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN
linking smallholder farmers to agribusinesses to
enhance pro-poor growth;
nationwide scaling up of a successful value chain
investment approach;
promoting and mainstreaming climate change
resilience approaches in Ghana, in particular in the
northern regions, financed through the Adaptation for
Smallholder Agriculture Programme (ASAP);
knowledge management, harmonization of
intervention approaches and policy optimization

Project name: Modernizing Agriculture in Ghana (MAG) programme


Ministry of Global Affairs Nation-wide The MAG programme is the major government
Food and Canada initiative driving the Planting for Food and Jobs
Agriculture programme. The programme intends to improve
(MoFA) access to improved seedlings, fertilizers, extension
services, marketing for produce and e-agriculture

113
Project name: Ghana Commercial Agriculture Project (GCAP)
Ministry of World Bank National The GCAP’s objective is to improve agricultural
Food and productivity and production of smallholder and
Agriculture nucleus farms in selected project intervention areas
(MoFA) with increased access to reliable water, land, finance,
agricultural inputs and output markets.
The project achieves these by:
strengthening investment promotion infrastructure;
facilitating secure access to land; securing public–private
partnerships and small-holder linkages in the Accra
Plains;
Securing PPPs and small-holder linkages in the ADA
Zone
Investments in physical rehabilitation and modernization
of existing irrigation and drainage infrastructure; support
to the restructuring of Ghana’s irrigation and drainage
institutions;
support for the development of new institutions,
including water users’ associations.

Project name: Skills Development Fund (SDF)


SDF Danida Nation-wide The SDF is a challenge fund providing a demand-driven
Secretariat response to three critical challenges encountered by
Ghana’s productive sectors: (i) an adequately qualified
labour force; (ii) the urgency to provide new entrants
to the labour market with gainful, employable skills;
and (iii) inadequate access to new technologies and
innovations.
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

114
SWOT OF GHANA’S MANGO SECTOR

Figure 46: SWOT of Ghana’s mango sector


Mango production, harvesting and processing Other
Strengths ƒ Strong producers’ associations and associations’ organization
(Federation of Associations of Ghanaian Exporters, and
Papaya and Mango Producers and Exporters Association of
Ghana) and the Tree Crops Development Authority (TCDA)
that coordinate mango activities both at the national and
regional levels
ƒ Producers have good appreciation of the relevance of good
agricultural practices and international certifications such as
GLOBALG.A.P. and Fairtrade
ƒ Past and ongoing involvement of development partners such
as the United States Agency for International Development
(USAID)/Trade and Investment Promotion for Competitive
Export Economy (TIPCEE) project, GIZ–Market Oriented
Agriculture Programme (MOAP), Adventist Development and
Relief Agency (ADRA), the Ghana Commercial Agriculture
Project (GCAP), and more recently WACOMP in the southern
zone, among other technical and financial partners; these
have significantly improved the quality of mango production,
harvesting and processing
ƒ The southern zone benefits from two harvesting seasons
(April to August and December to March), which enables it to
supply mangoes all year round
Weaknesses ƒ Poor access to finance for production due to the perceived
risks and seasonality of agriculture and agriculture-related
businesses
ƒ Low productivity
ƒ Poor post-harvest practices in the area of fruit handling and
transportation, among others, lowers the quality of fruits
produced and contributes to post-harvest loses
ƒ Small production quantities make it difficult to compete with
large players such as Costa Rica, Brazil and Peru
ƒ Lack of irrigation facilities to farms, especially in the northern
zone, who experience more than six months of drought
ƒ Difficulty of operators to maintain international certifications
due to the associated costs
ƒ High dependency on external support
Opportunities ƒ Mango and fruit processors in Ghana are always on the ƒ The sector has well-established

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


lookout for mangoes for processing purposes, which is good international beverage
for producers processing firms, which provides
ƒ High demand for fresh mango (imports from other countries) opportunities for other actors
and processed fruit products has increased in the domestic along the chain
market, especially in Accra ƒ EU mango imports are still
ƒ Presence of community pack house growing; however, supplies are
dominated by South America
Threats ƒ The high prevalence of the bacterial black spot (BBS) disease
reduces the number of fruits available for processing and
exports; farmers lose approximately 15%–30% of products
due the effects of the BBS disease
ƒ Post-harvest loss due to inadequate storage facilities and
cost of utility to store fruits after main harvest

115
ANNEX

ANNEX 1 – LIST AND CONTACT DETAILS OF MAJOR STAKEHOLDERS


IN THE MANGO SECTOR

Address Contact
Company Name Telephone Email Website
(Street, City) (Name, Surname)
BURKINA FASO
COOPAKE Orodara +226 75515574 coopake63@gmail.com Konate Souleymane,
(Coopérative kon2soul@yahoo.fr coordinator
Agricole De
Kénédougou
Dafani Orodara +226 20995353 dafani2006@gmail.com Sankara Noufou,
Head of Service
Management
Faso Mangoro Bobo Dioulasso +226 70779399 fasomangoro@yahoo.fr Ouattara Abou,
Director
Houet Select Lot 8 Parcelle 12 +226 76615507 houetselect1@hotmail. D’arondel De Hayes
Bobo Dioulasso fr Philippe, Director
Sanle Sechage 7.33 Banfora +226 20911631 sanleexportburkina@ Kone Yaya, Director
Export yahoo.fr
Sn-Ranch Du 01 Bp 3828 Bobo- +226 70 10 22 ranchkoba@yahoo.fr www.ranchkoba. Bougoum Issaka,
Koba Bf Dsso 01 15 com Managing Director
20.169 Bobo-
Dioulasso
CÔTE D’IVOIRE
Afrique Jus Treichville +225 89896214 Mme DJATTA,
Director
Atou - Ivorio Abidjan +225 05 00 40 atoujus@yahoo.fr Djegba Silère,
66 / 07 01 84 07 Quality Manager
/ 77 73 80 68
Atou Ivoire +225 21250951 atoujus@yahoo.fr Mme OUATTARA,
Secretary
Boisson D’afrik ABIDJAN - Djibi +225 08 57 05 agenceicc@gmail.com N’dri Koffi Marcel,
Village, Route 93 Director
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

d’Alépé
Boisson 31 Bp 39 Abidjan +225 22007598 agenceice@gmail.com Koffi Marcel N’dri,
D’afrique 39 - Abidjan Managing Director
Canaan Foods Abidjan +225 08 75 73 loyocarole@gmail.com Assoukpou Loyo
Service (Cfs) 35 Carolle, Director
Comafruits Abidjan Tél : +225 54 52 kone.comafruits@gmail. Kone Thimoko,
85 66/09 21 12 com Administrative and
32 / +225 54 52 Financial Manager
85 67
Pure Abidjan +225 08 08 64 lynne.ghossein@gmail. Ghossein Lynne,
65 com Managing Director
Ranch De Koba Abidjan +225 07 01 47 vazoumana@hotmail. Jouve Franck /
72 / 07 01 47 com Bamba Vazoumana,
74 / +225 07 05 Managing Director
97 64
VDB (Vergers Du Abidjan +225 08 71 13 vdn2010@hotmail.fr Charles Vallier,
Bandama) 19 Director
Vidalkaha Abidjan +225 07 93 33 Alexandra VIDAL,
13 Director

116
GHANA
Bomart Farms Nsawam +233 admin@bomarts.com www.bomarts. Vida Ofori,
208122924 com Production Manager
Hendy Farms Dodowa +233 hendyfarmsgh@gmail. Rita Brobey,
500554129/ com Operations Manager
500554130
HPW Fresh & Dry Adeiso-Bawjiase +233 50 141 Fd.admin@hpwag.ch www.hpwfnd.com Dylis Annor,
Ltd 9991 Marketing And Sales
+233 50 141 manager
9990
Wad African Gicel Plot P1 Weija +233 30285421 wad@wadco.ch www.wadco.ch Patrick Deegbe,
Foods Limited Director
MALI
Scs International Immeuble +223 20 22 65 m.amegankpoe@ www. Amegankpoe
Babemba, Avenue 60 scsinternationalmali. scsinternationalmali. Marlene, Managing
Kasse Keita, com com Director
Bolibana, Bamako
SENEGAL
Cada Villa Touta N°8683 + 221 77 638 bdioum@orange.sn . www.cadasarl. Bakhao Dioum,
Rue Des Ecrivains 36 86 / 77 642 bakhaoguisse@yahoo.fr com Managing Director
Point E, Dakar 35 20
Eangds / Avenue Cheikh +221 33 865 notto@notto.sn, www.notto.sn Massamba Sall
Exploitation Ahmadou Bamba, 12 45 mouhammadllg@gmail. Samb, Chairman
Agricole Notto Colobane, Dakar com
Gouye Diama
Sénégal
Esteval Aa N°5022, Sicap +221 77 640 estevalaa@orange.sn www.esteval.net Dr Valerie Quenum
Liberté 4, Dakar 44 94 contact @esteval.net Ndiaye, Director

Fruitales Fruitales Bp +221 77 333 matall@orange.sn; www.fruitales. Mme Marie André


22064 Dakar – 82 28 fruitales@orange.sn com Tall, Managing
Senegal Director
Maria Km 14 Route De +221 77 637 mariadistri@orange.sn www.mariadis. Mme Mariama
Distribution Rufique 08 90 com Diouf, Director
Zone Industrielle
De Thiaroye Sur
Mer Lot QB Face
Cité Khadydia,
Dakar, Sénégal
Maria Km 14 Route De +221 33 860 mariadisfr@yahoo.fr mariadis@ Mme Mariama
Distribution Rufisque, Zone 42 52 tpsnet.sn Diouf, Managing

WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN


Industrielle De Director
Thiaroye Sur Mer
Lot QB Face Cité
Khadydia, Dakar
Safina Sebikotane +221 33 854 safina@orange.sn www.senegal- Mounir FILFILI,
Baobab 68 40 export.com/ Managing Director
safina-senegal.
html
Siagro/Kirene Avenue Malick Sy, +221 77 386 marketing@kirene.sn; www.kirene- Alexandre
Groupe (Societe Immeuble Sehran, 05 97 serviceconsommateur@ groupe.sn Alcantara, Chief
Industrielle 6ème Etage kirene.sn Executive Officer
Agroalimentaire) BP 7020
Dakar - Sénégal
Waare Ziguinchor, +221 33 854 waareproductions@ Mr Moustapha
Production Sénégal 68 40 / 77 637 gmail.com Badiane, Director
20 27
Waaré Quartier Kenya, +221 waareproductions@ Amadou Moustapha
Productions Ziguinchor 338360828 gmail.com Badiane, Director
Zena Exotic Km 2, Route De +221 33 849 randa@zenaexoticfruits. Mme Randa Filfili,
Rufisque BP : 2547 56 66 com Managing Director
Dakar – Sénégal

117
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

118
WEST AFRICA COMPETITIVENESS PROGRAMME: MANGO VALUE CHAIN

119

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