Sunbeth Global Concepts is rapidly scaling up Nigeria's cocoa exports, capitalising on a global supply shortage. The company has significantly expanded its export capacity from 200 metric tonnes to over 200,000 tonnes of cocoa and other commodities. This growth is largely driven by a network of over 250 buying agents across Nigeria's key cocoa-producing regions.
Nigeria's cocoa export market is witnessing a shift in dynamics, with Sunbeth now accounting for more than 16 percent of the country's total cocoa exports. The global cocoa market is facing a structural constraint, with production standing at around 4.3 to 4.4 million tonnes annually, while consumption continues to rise.
African producers, including those in West Africa, are struggling to capture a significant share of the downstream value in the cocoa trade. Despite contributing over two-thirds of global output, African producers export mainly raw beans, while processing and branding margins are largely controlled by European and North American companies.
Sunbeth's aggressive expansion into Nigeria's cocoa export market raises questions about the government's commitment to diversifying the economy. The company's success is partly due to its ability to secure investment-grade ratings, which has enabled it to access cheaper capital for expansion. However, this highlights the challenges faced by Nigerian businesses in securing funding for growth. As policymakers push to reduce the country's dependence on oil exports, it is crucial that they create an enabling environment for businesses like Sunbeth to thrive. The cocoa sector's contribution to non-oil exports is a positive trend, but it also underscores the need for a more robust value chain that captures more of the downstream value.
