Côte d’Ivoire is considering reinstating a full value-added tax (VAT) exemption on fertilizers to ease pressure on farmers amid rising input costs and global supply disruptions.
The plan, outlined in a statement from the Ministry of Agriculture on March 23, comes shortly after the government introduced a 9% VAT on fertilizers and packaging materials in January as part of the 2026 finance law. The measure sparked concerns over higher domestic fertilizer prices and is now being reviewed in light of tightening global supply chains.
Agriculture Minister Bruno Nabagné Koné said authorities are engaged in ongoing discussions “with the relevant administrations, with a view to restoring a full VAT exemption on fertilizers to make them as accessible as possible for our producers.”
The announcement coincided with a regional meeting of agriculture ministers from the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU). The gathering focused on coordinating responses to rising energy costs and the tightening of fertilizer supplies, which are straining agricultural systems across West Africa and the Sahel.
The pressure on supply is being driven in part by geopolitical tensions in the Middle East. Since late February 2026, disruptions in the Strait of Hormuz—a crucial maritime route for global fertilizer trade—have affected shipments, according to the United Nations Conference on Trade and Development (UNCTAD). The strait handles roughly one-third of global maritime fertilizer shipments, or about 16 million tons annually.
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Côte d’Ivoire, like most sub-Saharan African nations, does not produce primary mineral fertilizers. Instead, the country imports raw inputs in bulk and processes them domestically into NPK blends, leaving it highly exposed to fluctuations in global prices.
Customs data show that the country imported an average of 496,426 tons of fertilizer annually between 2020 and 2024, with an average annual import bill of CFA145.7 billion (approximately $257.6 million).
Farmers and agribusiness stakeholders have warned that higher input costs could reduce crop yields and profitability, particularly for staple crops such as cocoa, coffee, and maize, which are critical both for domestic consumption and export revenues.
Regional experts say tax relief, alongside coordinated procurement strategies, could help shield farmers from price shocks while ensuring steady access to fertilizers. However, the effectiveness of such measures depends on timely implementation and close monitoring of supply chains.
The potential VAT rollback highlights the balancing act faced by Ivorian authorities: maintaining fiscal revenues while supporting the agricultural sector, which accounts for a significant portion of employment and GDP in the country.
“Making fertilizers affordable and accessible is vital to protect food security and rural livelihoods,” Koné said. “We are closely monitoring global developments to mitigate any negative impacts on our producers.”
As Côte d’Ivoire navigates these challenges, policymakers and farmers alike are watching international shipping and geopolitical developments closely, knowing that even minor disruptions can have outsized effects on domestic agricultural output and food prices.
