• IFC considers €75.25 million investment in cocoa processor Guan Chong

• Funds to expand cocoa processing plant in Côte d’Ivoire

• Project targets sustainable supply chains, jobs, and export capacity
  

The International Finance Corporation (IFC) is considering an investment of up to 75.25 million euros ($88.34 million) in Malaysia’s Guan Chong Berhad (GCB), one of the world’s largest cocoa processors. The funding, announced on Wednesday, would finance the second-phase expansion of GCB’s cocoa processing plant in San Pedro, Côte d’Ivoire, which began operations in 2023.

The proposed investment, subject to final approval by the World Bank’s private-sector arm, would support GCB through its subsidiaries Guan Chong Cocoa Côte d’Ivoire and GCB Cocoa Singapore. It would comprise a 45 million euro secured senior loan from IFC’s own account and an unfunded risk participation of 30.25 million euros. The latter forms part of a structured trade finance programme of up to 60.5 million euros arranged with a partner bank.

The plant is key to processing cocoa for export and supporting a more sustainable supply chain. Its expansion is expected to improve local producers’ access to international markets, boost sustainable cocoa bean production and increase local processing capacity. This would add more value domestically and create new jobs.

The initiative also aims to strengthen Côte d’Ivoire’s position on global markets by promoting environmentally and socially responsible practices. Supply-chain participants will be required to comply with the seven requirements of the European Union’s Deforestation Regulation, covering land-use rights, environmental protection, third-party and labour rights, human rights, free, prior and informed consent of indigenous peoples, as well as taxation, anti-corruption and trade regulations.

Côte d’Ivoire supplies about 40% of the world’s cocoa, with production reaching 1.67 million tonnes in the 2023/2024 season and nearly 1.85 million tonnes in 2024/2025, according to data from the International Cocoa Organization (ICCO).

Sandrine Gaingne