India, the world’s largest rice exporter, has imposed restrictions on its overseas sales of the grain since July 2023, in an attempt to contain domestic prices ahead of an election. This has created a supply gap in the global market, especially in Africa, where rice is a staple food for millions of people. China, the world’s top rice producer, has seized this opportunity to increase its rice exports to the continent, particularly to the Ivory Coast, the largest economy in West Africa.
According to Chinese customs data compiled by Bloomberg, China exported 45,000 tons of rice to Ivory Coast in October 2023, matching the volume exported in August 2023. These were the highest monthly volumes since at least September 2021, and the first shipments to the West African country in nine months. Ivory Coast was the fourth-biggest buyer of non-basmati rice from India in 2022/23, according to trade data from India’s commerce ministry.
China’s rice exports to Ivory Coast have surpassed the total volume of 63,500 tons in 2022 when India was the main supplier. Other African nations, such as Ghana and the Democratic Republic of Congo, have also boosted their purchases from China, importing 20,500 tons and 18,500 tons, respectively, in August 2023. Both were also monthly record highs in data to September 2021.
China’s rice exports to Africa are part of its broader strategy to expand its trade and investment ties with the continent, where it is already the largest trading partner and creditor. China has also been providing development assistance, debt relief and vaccine donations to African countries, amid the Covid-19 pandemic and the global economic slowdown.
Ivory Coast, which has a population of about 26 million, consumes around 2.2 million tons of rice per year, according to the Food and Agriculture Organization (FAO). However, its domestic production only meets about half of its demand, and the rest is imported, mostly from Asia. Rice imports account for about 10% of the country’s total import bill, and have a significant impact on its trade balance and food security.
The Ivorian government has launched a national rice development strategy, aiming to achieve self-sufficiency and even export surplus by 2025. The strategy involves increasing rice production, improving post-harvest management, enhancing milling capacity and quality, and promoting local consumption. The government has also set up 50 mills to process 5 million tons of paddy rice, with the help of India’s Exim Bank.
The FAO, along with other development partners, such as the Republic of Korea, has been supporting Ivory Coast’s efforts to boost its rice sector, through capacity building, technology transfer and experience sharing. The FAO estimates that increasing rice productivity and sustainability in Ivory Coast could have a positive spillover effect on its neighbouring countries, and contribute to regional food security and economic integration.
Source: Bloomberg
