The SSNUP program supports cocoa cooperatives in Côte d'Ivoire

SSNUP is a program coordinated by the NGO ADA, whose objective is to increase the productivity and resilience of smallholder farmers in Asia, Africa, and Latin America through better risk management and the development of sustainable agricultural value chains. Funded by the governments of Luxembourg, Switzerland, and Liechtenstein, SSNUP aims to improve the living conditions and food security of more than 10 million smallholder farmers. The Grameen Crédit Agricole Foundation is one of the impact investors responsible for implementing the project.

Producer cooperatives, a lever for development

In Côte d'Ivoire, where more than half of cocoa producers live below the poverty line, producer cooperatives are a powerful lever for development. Beyond the commercial aspect they offer producers, they provide their members with services ranging from inputs and the supply of small equipment to improving community life through initiatives such as the establishment of schools and clinics. However, cooperatives sometimes encounter repayment difficulties from their members, and unpaid debts are then covered by the cooperatives from their own funds, which prevents them from carrying out their social development mission.

This is what Advans Côte d'Ivoire has been striving to achieve since its inception in 2012, becoming the first financial institution to provide cocoa cooperatives with access to input credit. Advans Côte d'Ivoire's input credit consists of providing cocoa cooperatives with financing that allows them to extend loans to their members to purchase fertilizers and plant protection products.

Strengthening the capacities of cocoa cooperatives in Côte d'Ivoire and their members

Advans Côte d'Ivoire received a grant from SSNUP to support cocoa cooperatives in improving the repayment levels of member producers. With the funding, the institution recruited technical assistance providers to develop input credit management and monitoring tools for cooperatives and financial education modules on credit management for small cocoa producers.

Ultimately, strengthening the financial education capacity of small producers will help limit the risk of non-payment to cooperatives. These cooperatives will be able to secure their income through better credit risk management, thus fulfilling their role as facilitators in the value chain and carrying out their social actions for the benefit of the community. This will also make it easier for cooperatives to renew their loans with Advans Côte d'Ivoire, and for producers to have access to the inputs needed to ensure good agricultural yields, thereby increasing their income and improving their living conditions.
Finally, Advans Côte d'Ivoire will strengthen its risk profile, which will help consolidate existing relationships with its current partners and attract new investors.