Côte d’Ivoire introduces 9% VAT on fertilizers and animal feed

CÔTE D’IVOIRE – Côte d’Ivoire has started applying a 9% value-added tax (VAT) on inputs used for fertilizer and animal feed production, along with the packaging for these products.

The measure, announced by the General Directorate of Taxes, came into effect on January 17 as part of the 2026 Finance Law.

Until 2025, these inputs were exempt from VAT. While the Finance Law initially suggested the standard 18% rate, authorities reduced it to 9% to ease the impact on the sector. The introduction of the levy could raise costs for importers and producers.

Côte d’Ivoire does not produce mineral fertilizers locally, so companies like SOLEVO and ETG import raw materials in bulk to produce NPK compound fertilizers.

“We are closely monitoring the impact of this new tax on both input costs and overall agricultural productivity,” said a spokesperson from the Ministry of Agriculture.

Data from the International Fertilizer Development Center (IFDC) shows that in 2024, Côte d’Ivoire imported 573,123 tons of fertilizer. Urea made up 32%, potassium chloride 24%, NPK 14%, triple superphosphate 13%, diammonium phosphate 5%, and ammonium sulfate 2%. The figures reflect the heavy reliance on imported simple fertilizers for local compound production.

VAT and agricultural goals

Experts warn that applying VAT could discourage farmers from using fertilizers due to higher purchase costs. FAO data indicates that fertilizer use in Côte d’Ivoire averaged 43.8 kg per hectare in 2023. While this exceeds sub-Saharan Africa’s average, it falls short of the 50 kg per hectare target set in the 2006 Abuja Declaration.

At the 2024 African Summit on Fertilizers and Soil Health in Nairobi, the country committed to tripling production and distribution of certified fertilizers by 2034 to improve access for smallholder farmers.

Impact on animal feed

The 9% VAT also applies to animal feed inputs and packaging. With feed costs making up over 60% of livestock expenses, the measure may push prices higher for feed producers and farmers.

“The introduction of this tax could affect the growth of our local animal feed industry,” said an industry representative.

Despite this, private investments continue to flow into the sector. Dutch company De Heus announced plans for a new feed production unit in Korhogo, while the Ivorian Society of Animal Production (SIPRA) secured US$23.5 million from Norwegian fund Norfund to expand feed manufacturing, animal husbandry, and product processing.

Côte d’Ivoire aims to nearly double chicken meat production to 200,000 tons by 2030, up from 114,000 tons in 2024, which will drive additional demand for animal feed.

Authorities now face the challenge of balancing revenue collection, competitive pricing, and sector growth to ensure that VAT does not slow progress in agriculture and livestock production.

Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.