In 1996, through its investment in Compagnie Hévéicole de Cavally (Cavally), CDC acquired 2,000 hectares of rubber plantation located in the Moyen Cavally region of western Côte d’Ivoire. At the time, CDC was still a direct investor. CDC’s investment enabled the Cavally to build a modern rubber processing factory.  CDC was one of few foreign investors that remained active in Côte d’Ivoire following the coups d'état in 1999 and 2002, and the subsequent civil war. CDC’s investment has been managed by Actis since 2004.

In 2006, the company produced 14,000 tonnes of rubber for export to customers such as Michelin and Goodyear, generating a total of €20m export revenues, which provide much needed hard currency for the Ivorian economy.

Cavally is the only significant source of jobs and income in a remote rural Ivorian location within a country suffering high levels of unemployment. The company employs over 1,020 permanent staff and over 300 contractors. These jobs have been important for stabilising the surrounding communities and aiding rehabilitation of ex-combatants from the civil war period.

Cavally operates a smallholder programme. This provides local people with planting material, training and finance to establish their own plantations from which “cuplump” (raw rubber) is bought at market prices for processing at the company’s factory. This programme boosts economic activity and raises skill levels in the local communities.  As a result there are about 600 smallholders involved in rubber production in the Moyen Cavally region. Their production contributes around $7m to the local economy.

During CDC’s ownership, Cavally built two primary schools for the local community, paying the salaries of four of the nine primary school staff, while also providing an adult literacy programme for villagers.

Côte d’Ivoire, like other sub-Saharan nations, suffers from high HIV infection rates, with over 4% of the population reported to be HIV positive. Cavally supports community HIV/AIDS awareness initiatives, and has assisted in the distribution of free condoms to the local community.

With the help of CDC’s fund manager Actis, management at Cavally has been able to access agricultural, technical and commercial advice and assistance, developing an economically viable and sustainable business.

Despite the long periods of instability experienced in Côte d’Ivoire throughout CDC’s 11 year investment period, Compagnie Hévéicole de Cavally developed one of the most productive rubber plantations in West Africa producing a premium export product. The plantation was sold in 2007 to a well-established tropical plantation business.

1 The data is from 2006, except for when stated otherwise.
2 US$29m invested by Actis. CDC’s investment in the Africa Agribusiness Fund is US$93m; total fund size is US$93m.
3 2005-2006.