ITARE in Ivory Coast

THE “ITALIAN SYSTEM” CONCEPT

Since its establishment, ITARE has adopted a development strategy to promote the entry of national companies into the Sub-Saharan African markets through a coordinated approach by the Italian- System. The company’s name itself reflects this logic: ITARE (ITAlianREsources) means realizing development initiatives in Africa with the participation of partners capable of designing interventions, small and medium-sized enterprises organized into supply chains, supporting public institutions and major national banks.

MODEL FARMING

In response to the significant food demand on the African continent, the evident dependence on imports, and the consequent impact on the balance of payments, ITARE has developed the concept of Model Farming. This is an integrated approach to the agriculture and livestock sector through which ITARE, in collaboration with public and private counterparts, develops entire value chains (from production to processing and marketing of products) across various sectors (poultry, cattle, aquaculture, etc.).

Model Farming projects consist of inputs that are scalable in size, flexible in execution, and replicable in other contexts (both countries and sectors). ITARE structures these projects using an EPC+F (Engineering, Procurement, Construction + Finance) scheme. This scheme enables ITARE to offer African governments or private counterparts a turnkey solution that combines a quality commercial offer (managed by the supplier) with a competitive financial structure.

The Model Farming project formula, for initiatives to be implemented with public counterparts, develops along two main axes:

  1. G-to-G Finance: This axis concerns the collaboration between the Italian state and the beneficiary country (African state) underpinning the realization of projects in the relevant country. ITARE provides consulting services, interacting with various parties to define specific interventions aligned with national policies (development plans on the receiving country’s side; and financial and technical resources on Italy’s side). It is called “G-to-G Finance” because each project involves the supply of technologies through state-to-state financing, with the receiving country’s sovereign commitment guaranteeing credit repayment. The financial solution structured by ITARE for these initiatives can combine development finance (DFI), export credit, commercial loans, and insurance coverage. This results in a “blending” of resources tailored to the country’s context (e.g., foreign debt sustainability), project phases, and final beneficiaries (state, private).

  2. Public-Private Partnership (PPP) Model: This axis concerns the scheme internally prepared by the African government for developing and managing the Model Farming project. The government structures the project as a Public-Private Partnership, offering local companies the imported technology through leasing formulas or other financial schemes with public participation, thus overcoming the constraint of access to local bank credit.

THE IVORY COAST PROJECT (PCA)

The Ivory Coast Project (PCA), carried out by ITARE thanks to the contribution of European funds from the Emilia-Romagna Region, aims to strengthen the company’s presence in the country and, through this hub, in the West African markets.

The PCA enhances ITARE’s ability to develop its internationalization projects and, indirectly, those of Italian companies (particularly those from the Emilia-Romagna Region), participating in initiatives according to a “System” approach. In this way, ITARE creates a “leverage effect” towards the goal of the call to “accompany the regional production system beyond the pandemic crisis and strengthen its resilience through increased exports and scale up of exporting companies.”

The initiatives structured within the context of the PCA aim to overcome the limitations of the small-scale typical of our productive fabric, encouraging collaboration and aggregation dynamics in supply chains and value chains, and promoting financial solutions by Italian commercial banks and public institutions. The commercial offer is structured based on the concept of “Model Farming,” that is, solutions in line with the needs of the African production fabric, integrated (both technically and financially) and directed at the priority sector of food security (agriculture and livestock).

Within the PCA framework, there is the initiative to modernize the poultry sector, carried out in collaboration between ITARE and public entities of the country. This initiative aims to promote food production through private sector participation in all stages of the value chain (feed production, storage, breeding, industrial processing). A first phase is already underway, to be followed by typical post-sale activities as part of the PCA.

Following a Memorandum of Understanding between ITARE and the Minister of Animal Resources and Fisheries (MIRAH) of Ivory Coast (March 2023), which provides for “collaboration in the commercial and financial structuring of the Modernization Project” of the relevant sectors, new project initiatives will be developed within the PCA framework. Currently under discussion with MIRAH are the extension of the initiative in the poultry sector and a Model Farming project for cattle breeding.

MAIN PROGRAMS IN IVORY COAST

Below there are the main initiatives of ITARE in Ivory Coast.

  1. Integrated project for the development of the poultry sector under a Memorandum of Understanding with the Ministère des Ressources Animales et Halieutiques (MIRAH).

    • Projet de Modernisation du Secteur Avicole (PMSA): installation of a hatchery with 10 million chicks/year capacity, a feed mill with 20 tons/hour capacity, a farm with 10,000 head, and a slaughterhouse with a capacity of 2,000 chickens/hour. Total project value: €49.9 million (in progress).

    • Projet d’Installation d’Abattoirs Industriels de Volailles en Côte d’Ivoire (PAV): installation of 3 slaughterhouses with a capacity of 1,000 chickens/hour and 4 slaughterhouses with a capacity of 2,000 chickens/hour. Total project value: €24.2 million (in progress).

    • Projet de Renforcement de La Chaine des Valeurs Avicole (CVA): installation of three storage sites with a capacity of 24,000 tons/site, a feed mill with a capacity of 20 tons/hour for the production of flour and grain, a slaughterhouse with a capacity of 2,000 chickens/hour, a hatchery with a capacity of 10 million chicks/year, and 54 farms with 10,000 head each for laying hens/broilers. Total project value: €54.7 million (technical offer signed).

  1. Integrated project for the development of the cattle breeding sector under a Memorandum of Understanding with the Ministère des Ressources Animales et Halieutiques (MIRAH). Projet de Développement des Chaines des Valeurs Ruminants (PDCVR): installation of six breeding centres for cattle and small ruminants. Total project value: €64.8 million (technical offer signed).

  2. Integrated “food security” project in partnership with the Ministere du Commerce, de l’Industrie et de la Promotion des PME: Marché de gros de Bouaké (MGB). Installation of facilities for the preservation of fruit, vegetables, meat, and fish products at the wholesale market in Bouaké. Total project value: €69.2 million (under negotiation).

  3. Integrated projects for the realization of infrastructure for irrigation and water management in partnership with the Ministère d’Etat – Ministère de l’Agriculture et du Développement Rural (MEMINADER):

    • Projet de Développement Rural Intègre de la Plaine de San Pedro: canalization and irrigation works aimed at promoting rice production in the San Pedro region. Total project value: €20 – 25 million (under negotiation).

    • Projet d’Aménagement Hydro-Agricole de la Vallée du Ton (Département de Séguéla) : canalization and irrigation works aimed at promoting rice production in the Vallée du Ton. Total project value: €25 – 30 million (under negotiation).

TECHNOLOGICAL PARTNERS

ITARE carries out the planned initiatives mentioned above through (i) the commercial development of the operation, in collaboration with its strategic partners; (ii) the organization of the supply chain of supplier companies; and (iii) the structuring of financial solutions. Below are the main companies that are part of these supply chains:

ITARE’S LOCAL REPRESENTATIVE

Dr Charles Dadié Dago, PhD: A senior consultant with extensive international experience. The consultant has a university background in veterinary medicine, is a recognized international technician, and is originally from Ivory Coast, where he serves as a liaison with the local government and private entrepreneurship. In addition to dialogue with institutional counterparts, the consultant develops collaboration with various private and public operators, potential clients, suppliers, and partners.