Côte d’Ivoire considers returning VAT exemption on fertilizers
Government weighs removing 9% tax to ease access for farmers.
CÔTE D’IVOIRE – Côte d’Ivoire is reviewing a plan to fully exempt fertilizers from value added tax (VAT), the Ministry of Agriculture announced on Monday, March 23.
The current 9% tax, introduced on January 17, applies to inputs used to make fertilizers and their packaging as part of the 2026 finance law.
“To date, discussions are continuing with the competent administrations, with a view to returning to a total exemption from VAT on fertilizers, in order to facilitate access as much as possible for our producers,” said Bruno Nabagné Koné, Minister of Agriculture.
Officials say the tax increase risks driving up the local cost of fertilizers at a time when international markets face disruption. Military tensions involving the United States, Israel, and Iran have disrupted shipping through the Strait of Hormuz since late February.
The United Nations Conference on Trade and Development estimates that nearly one third of global fertilizer shipments, about 16 million tonnes, pass through the Strait.
Like most sub-Saharan countries, Côte d’Ivoire does not produce mineral fertilizers locally. The country imports raw fertilizers in bulk and processes them into NPK compounds at blending units.
Between 2020 and 2024, the nation imported an average of 496,426 tonnes of fertilizer per year, costing roughly 145.7 billion CFA francs ($257.6 million) annually.
These figures highlight the country’s vulnerability to price swings and supply delays caused by geopolitical tensions. Farmers already face higher production costs, and further increases could affect planting and harvest cycles.
Neighboring Ghana has announced a full distribution of free fertilizers for the 2026 season.
President John Dramani Mahama said on March 21, “We have acquired fertilizers for our farmers that are usually sold at subsidized prices. However, this time, I have instructed the Minister of Agriculture to distribute them free of charge.”
The government expects the move to increase cultivation and yields, particularly for maize and rice, amid rising global prices and supply risks.
As West African governments respond to international market strains, Côte d’Ivoire’s potential VAT exemption could help farmers maintain productivity while minimizing the impact of rising input costs.
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