Development of the sugar industry in the West African sub-region

.t l-

I.

^I

(..=out~CIL

ECOJIOMIC COMMISSION FOR AFRICA Sub--regionalt Meeting on Economic Co-operation in West Africa Nia:1ey, 10-22 October 1966

M66-l.355

DEVELOPMISNT OF THE SUGAR INIUSTRY IN THE WEST AFRICAN SOB-REGION

-··-.. - ---·· ^. '.

I~~~:

Distr.

LI.ll'J:TED

E/CN.14/INR/1.35 5 October 1966

Original: ENGLISH

•

I ~

E/CN.14/INR/135

TABL8 OF CONTl;;NTS

PA~T I

1JHAPTER I

0.1.

_ o.

2.

GENERAL

Introduction Scope of study

0,2,l, The method of projection of d.emana.

1,HAPTER II 1,

1.1.

1. 3.

·1,4.

1.5.

·1.6.

1.8.

1.9.

1.10.

1. 11.

1.12.

1.13, 1.14.

THE PRESENT POSITION Al'fD FU'IURE PROSPECTS OF Dl!:VI.:Il)p., J;;t;NT OF SJGAR IHIDSTRY IN I'HE WEST AFRICAN &JB..REGION Present consumption of sugar

Consumption of cc-nfeetion'a)ry Foreign exchan1,e involved Duties, taxes and. price Demand for sugar in 1980

Possibilities of meeting the demand

&'ub-re1,ional self-sufficiency By-products utilization

Ancillary. industries Financial reQuirements ,,r;,ployment potential Gross value of output Value added

Phasing of investment GHAPT£JR III

,, ,_.

RECOMJ.iltNDATIONS

l - 3 l l

2 - 3

4

-

²²

4

- ⁵

5

⁶

6 7 -

⁸

8

lO 13 l4

- ^1;

15 ₁₆

-

¹⁶

₁₇

17

18 19 19

19 - ²²

23 - 27

E/CN,

14/INR/135

TAB.LE OF CONTENTS (C..,nt'd)

PART II CIIAP'I'ER IV

3.

COO'NTRY-WISE REPORTS 28 - 106

3.1.

Nigeria _{2~ -}

39

3.2.

Dahomey and T"'gO

49 - 49

-3.3,

Ghana·

50 - 59

3,4,

Ivory Coast

60 - 66

3,5.

Liberia

67 - 71

3.6.

Sierra Le<"ne

72 - 76

}, 1, Guinea

77 -

⁸¹

3,8.

Gambia

82 • 85

..

3,9.

Senegal and Mauritania

86 - 93

3,

10. :11.ali

94 - 98

3, 11,

Upper Volta

99 - 102

3.12.

Niger

l03 -

106

.ANNEX

IA DATA RBiiATING TO GDP PJ:]R CARJT IN TRE MONETARY SlliCTOR

AND

PER CAEUT CQ!ifSU:VJ.PTION 01'' SUGAR OF THE i!J!iST AFRICAN COONTRIES AND

SOME

^COUNTRIES

OF

EUROPE

IE REGRESSION LINE FOR SUGAR CONSU~.FTlON Al1D GDP

IC

II

PER CA.PUT CONOO?i;FTION IN

1980

COBBESPONDING TO GDP/CAJUT IN

1980 FOR

lfLST AFRICAN C0011TR'.CS

Mapa

III SCHEME FOR SlfJuJ:,.-SC.A.LE &JGAR liJA.NUFAC'lURE

- ii -

..

,

...

·,

...

•

•

I

II

I I I

TABLE OF CON".ENTS (Cont'd)

'i:IJE !1A1WFAG'.i:URHTG PROCESS M:ACHIJ'JF.RY HE:;;.UIRED

WORKING

EXPE!,TSES

FOR A 60 TONS/DAY UNIT

IV ACKlWilLEDGEi,@TT

V :BTBiiI OGR.A.P:Erl

- i i i ....

E/<JN.14/INR/135

...

..

l'ART I CF..A?.TER I O~ GEN~RAI,

E/CN.14/nrn/135

.:.n :;-...:..::~susn0e or' its objoo-ti v-es, the United Nations Economic C_om-

~i.osion fo:,· J,.-f:::..'ic~. ic tmdoc·,volll'ing to assist the African countries in the

·· ·:;c.a~-;

r.·::

d.E>Vdlo1,tue theh• in-'!ustries. To this end pre-feasibility studies ::.·~·e -';,oikc.-,·~ 0.·,, 1•06^:J_N•.-1-rioo 2.11d p1.2,ns and proposals are prepared for the ,x,nsid'Jt-r.t:· 01L of the :p·,_.;:,postld aub-!.•egional machinery on economic co-;-

_)p9::•a tiou.

St1ga1· ::.s oJ-,.EJ o-f: -~he important industries and i ta development is dt,:1J. fo-;,_• Th9 e~o•.10; .. i.0 c,.G'tolopment of Afrj_cao This study relates to

,:· .. .

1:h~ possi~•-Htics of <1.o,;cl::.1pment oi the sugar industry in West Africa.

Tho stt·.u:; C!lvi~.(.;, .. ,.-~ .. t~o f•J:,•::nnJ.::,.ticm of a· tentative :plan of develop-

. ➔ nt of .::c1.gn1· i!'.rkr:t:-;,- -:.;-;. ti....B We.1t Afi•j_can s1.1b-re3ion wit~ a view to , .•.ki:15 the ^:.::..:·•·1'1:.gi~'•1 ,;,.:ilf-mt.:ficient in sugar. For the time being,

... ~).'o:.rt of Eiuca:::- :t'.r-o:i1 t~;o oul:-:.· )gion :is not envisagedo The sub-region

co,npr.~~os Nigorlc, jJ.:hoci3y ₉ 'Togo, Ghana, Ivory Coast, Liberia, Sierra l.13one, Gt1.i:·1oa, Ga111h:b.~ Sen•3~al~ Mau:r~tania, Mali, Upper Volta and Niger.

'fh3 110:c•-:i.od co-n:n•ec. ii:; 1..lp to t:io yea!' 1980. The demand for sugar in

t,'1e year 19eo kc-; be(')'. as.Juosed loi· each countr·y, taking into account

.J \ . , .

u .. • . J :ponsibla ir:c:::.:e.::.cc in <.:vne:u:r.ption chte to higher income and due to

t;:., g:1.·J,,th ^1.)f yr;:ou.lai:;:i.ci:.1Q ¹i'l:..) nothod of p;.-ojection of demand adopted i.i -~h:i.,.; ctui:.y i:J c;~pla.i11ed ::.n pa:r:>.grapb 0 .. 2.1. below. The possibilities of :i120Ung tho a--~Cll(jBc>ci rnqpireracmts have beeu examined.

'!:'h3 eo!l.iit:i.ons undoJ: ,,'c~~.ch E.ngarcane ie grown or could be grown 1,e::.'e et12.dio0. ?.nd in tr.u light of pos.3-i.ble yield and q_uali ty obtainable, the aJ.'et". Nq_'-lirsd for ~u.garcane plantations and the number, size and typ-;s -0f fo.ctt..;_•io:J to 'be so·I.: \.\P ba,,_.e boen specified.

E/GN .14/nrn/135

P,,;:e 2

';

The possib:J..e :i.v00,·cl,:)n::J l1ave also ·been indicated.i The manner of by- products utiliz2tion has beBn s1J.t,,:,ested and an assessment has been T:',ade of the i"'inar~cial requi:remeffijS and of the e:cplcyr.rent potential likely -co be generated,

Wlli te sut,ar is a pct la table and costJ.y item cf human consumption.

Its consurn·ption 11as a dJrec:t relationship with income.. As incon,e in- creases, the ou.~lay on m.~gar nlsJ increases almost proportionately till

~;l saturation leYel is reac:led., For this reason its consumption, to a significant extent, is confined largely to the n;o·:ietary sector of tho:;

9opllla tion,. rI'he S'.lbsj stence sector -oy definition i.s unable to spend on su.gar~ In projecting tile demand for sugar therefore only the rise in income and growth of pop·,,..la tion in the mo:ietary sector have been taken into account. T":-1e :fi0:1re to bo related to incor:1e should be the value of oonsurr.ption but c.s th0 price faotc:r is u!1certain and it is to be p:resuued that the price level 11ill more o:r less :remain constant a relationship has been esttL·olinb.eC_ between income ':l.nd. ec1t,ar consumption by weight. A :regression e:.11.ta tion has been ~built be tween GDP per oapu t

(US3) and pex· capu-t concv .. mftion of sc.1.gar (kg/year). rhe data taken for drawing up the eq;.1atior: relate. to average consump+,ion o-f' sugar in the viest African countr!.es for the years 1962, 1963 and 1964 and the GDP per caput, in the monetary sector, for 1963, 'J'he average of the tnree yearst per cap!J.t oonsur,1ption h1u3 been t:1Ken in order to smooth out the variation in the coneuri~ption figures du:ring the tllx-ee years. Along with the .:·igures of the -,1est African countries were also taken the figures of sorte of the developed countries of ,.,urope, It has been presumed that the dominant factor inf::!.uencine;: sugar consumption is the level of incone in the developing as well as in the advanced countries. Tll,e relevant d.2 ta are given in the table in .Ar.nex IA.

The regression eq,ua tior. relating0GD? to consumption .of oon&U.mer goods is genexP..lly of the fcrm Y = axb where 'b' is the coefficient of e1a.sti- ci ty and ^I at is a cor~stant. '1o.king the logari thrns, the equation :reduces

•

E/CN .14/INR/135

Page 3

to logy= b log x + a, On fitting the data in the table at Annex I.A, by tl:.e method of least squares, the equation works out to log y ^c 1, 1675

log x +

l,08893.

The regression line and the points represented by the various countries are given in the graph at Annex

IB.

The projections worked out for the

GDP

values for

1980

for the different West African countries and the total demand, corresponding to the monetary sector of the population,in

1980,

are given in the stat,,ment at Annex IC.

;:,/en; 14/nra/135

Page 4

CHAPTER II

1; ';'1ID PP.:JSENT POSI'I·ICH AND };1J'IURE PROSPECTS OF DEVELOPIIC?'/T OF TIJE SUG/Jl IXDUSTRY IW THE WDST l\.ii'RIC.Al, SUB-IlEGIOU

The aver:cge annual consumption of sugar in the past few years, in the va:rious West A.f:doan countries and in the sub-region and the per oaput oonsump,ion based on the average consumption of the years

1962, 1963

aad.

1964

,rere as follows:

TABLE l

Average annual Average per ca.put

Countries consumption consumption

1

000

tons 'r,.g/year

1. Nigeria

64,80 2;8

2;

Dahonsey

6;21 6;1

3,

T·ogo

3;82 7;2

4;

^Ghana

^{52;00 15;8}

5.

Ivory Coast

26.90 23;9

6;

Liberia

21.06 9;5

7.

^{Sierra. Leone}

16.63 11;3

8.

Guinea

13;24 9.7

9;

^Ga::1bia

2;76 15;3

10;

Senegal and l!auri tania&

56;50 34;0

• Nali

19;85 11;3

12;

Upper Volta

8;86 6:1

13.

Niger

5,53 6;8

Sub-region

298:16

7,2

,·

!!)

The figures of Senegal and Eauritania have been combined as the sugar for the two co:mtries is imported. jointly at the port of Dakar and exact figures of consumption separately for the two countries were not available~

•

•

E/CN~ 14/nm/135

Page

5

It uill be seen that, on an average, about 298,000 tons of sugar was consumed per year in the sub-region in the three years preceding

19€5

and the per caput consumption for the sub-region was of the order of 7,2 kg per year.

If

the figures of consumption of various countries in individual yea:•s from say

1960-1961

to

1964-1965

in the country reports given in Chapter IV, it will be noted that there has been appreciable variation in i.he figures from year to year; The price factor and the availability of foreign exchange no doubt affect the consumption but not to the

ex-::E>:'.lt denoted by -tl:.e figures :for the years under reference; It appears therefore that the variation has, in a large measure, been due to

poLticel changes that have taken place in these countries since

1960.

The position seems to be stabilizing now and an upward trend is noticed.

The per caput consumption of

7.2

kg/year is far below that of the dev,3loped countri';)s where it ranges from about

20

to above

50

kg/year (se,3 the figures of per caput consumption of some cf the European oou:1tries at Annex IA).

1,2.

Consum~on of confectionery

The average consumption of confectionery has been as follows:

TABLE 2

~

1;

Nigeria

1,585

2. Dahomey

216

3;

Togo

76

4 • Ghana

651

5~

Ivory Coast

440

6;

Liberia 447

7;

Sierra Leone

754

8;

Guinea ^I,A

9~

^Gambia

¹⁴⁵

10;

Senegal and !.Iauri tania

815

11~

Mali

131

12,

Upper Volta

130

13;

]Tiger

327

Sub-region

5,717

E/cN; 14/nrn/135 Page 6

' .

The average consumption of confectionery in the sub-region was of the order of 6₁000 tons as against about 300₁000 tons of sugar, i.e., almost 1/50th of the sugar oonsur.1ed.

1;3; Foreign exchange involved

The average c.i.f. values paid towards importing sugar and con- fectionery are given below. These can be taken to be the foreign ex- change spent,

'.l'ABLE 3

Country Average c,i,f, value paid ( in mill; US$) For sugar For confectionery Total

l. Nigeria 8;82 0.98 9.80

2;

Dahomey 1,30 0;11 1.41

3; Togo 0;77 0.05 0.82

4. Ghana 7.70 0,37 8,07

5;

Ivory Coast 4.95 0;35 5.30

6, Liberia 0,33 0;19 0,52

7. Sierra Leone 2;61 0.40 3,01

8; Guinea 2,00 2,00

9.

^{Gambia 0,37 0,06 0,43}

10. Senegal and Mauritania 11.13 0.40 11.53

11. }1ali 3,70 0,03 3;73

12, Upper Volta 1,80 1,80

13. Niger 1,35 0.12 1.47

Sub-region 46;83 3,06 49,89

It will be seen that the total amount of foreign exchange involved or the money sent out of the sub-region was of the order of US$ 50,0 million which is very substantial,

This indicates that sugar would be an important item for import substitution.

, .

^'

^,,

1.4,

Duties, taxes and price

E/cNa4/INR/135

Page 7

The dutiee and truces levied in various countries of the sub-region and the c,i,f,, wholesale and retail prices are as follows:

Country

l. Nigeria.

2. Dahomey

3.

To150

4,

Gh.~na

5,

Ivory Coast 6, Li.·Jeria 7. Si i,rra Le one 8, Gu:,nea

10.

Gambia Senegal and

¥.ai,,ri tania 11. Ma:.i

12. Upper Volta

TABLE 4

Duties and taxes

4,6¢

per kg 17 ,0% on gran ^&

18.0% on cube on c;i,f, value + 17!! per kg

NA

33½%

on c;i,f, value 1;0% on gran

2,0% on cube

3,01!

per lb,

NA NA NA

Average c,i,f, prices US$ per ton (average of last few years)

NA

154,7 183,8 159.9 165,5 138;rj:/

Entry ta:x: 1,0%

Statistical tax 2~0%

Turnover tax 12;0%

133,3

197,0

1%

of o,i,f. on gran

186,0

2% of o.i•f• on cube +

16,33%

sales ta:x: on wholesale price

3,5%

of o,i,f, on

203,8

gran;

4,5%

of o,i,f,

on cube

3,8%

on c,i,f, value

243,6

!!:}

o,i,f, value per ton for the year 1962,

1965

wholesale price USS per

ton

Gr, Cube

Retail price US cents

per kg

NA NA

296,8

27.6 -

30;5

NA 258,8

170

209

160

333

333

271

280.3 33,0

NA NA

362,2

235

404

354

•

18,0 •

26~0 24 - 30

16 -

28 46;0 28 - 32 35~4 - 41,6

39,1 - 41.6

E/CN .14/nTR/135

Page 8

It will be seen from the above that the quanta of duty an.d taxes are different in ciifferent countries. Duty or tax on oube sugar is generally higher than on granulated sugar, The wholesale prices of granulated sugar range from US$ 160 per ton to US$ 333 per ton while those of cube sugar range between US$ 235 to US$ 404 per ton. These variations are due to a combination of faotors such as varying c.i.f.

prices depending on the f.o.b, prices of various sources of import, differences in amounts of freight and insurance and differences in the quanta of duties and taxes, handling charges, wholesalers' oommission, etc.

1,5. Demand for sugar in 1980

The demand for sugar in the West African countries in 1980 bas been worked out by the method of projection mentioned in paragraph 0.2,l, The estimated demands for ·the various cmntries and for the sub-region as related to the estimated growth of population and increase in inoome (GDP per oaput) are given in Table

5.

It may be pointed out here that only the population in the monetary ,;ector · has been··•c"o,1sidered a,s the consumption ( of refi~ed sugar) is·

largely confined to this sector of the .population, that in the sub- sistence sector being h1a1·ginal.

It will be seen that ~he total demand for sugar in 1980 (including . sugar required for confectionery and other purposes) is esti~ated at

1,003,600 tons as against the present averaic,e consumption of 298,160 tons, With this demand of 1,003,600 tons, the per oaput consumption for the sub-region is expected to rise to 12.0 kg/year as against 7~2 kg/year in 1963.

..

•

,,/c1¹

1·

11··,,-, 11 ,5

;1 " "l/ ~·,'/ -

11··A.l':..ir.,

5

.Pnee ^Q ,

•

r,•-,,h,

i)•.r c,::;::;t ^,. . " . i ,' ^{' ~-,} ,

"

' ^{' '-· t}

; ~.v.

^l:;c-v ..i.i.6'-i~<-.::,_::vt:Uit:"fl t, tcy_u.1.J·er:1<~nt ·1otal caput consump- caput consump- (men.sect.) of sugar in of sugar eugru:·

1963 tion 1963 19&0 tion 1980 millions 1980 - ^tons for confec- del!'.and

ns$

kg/year US$ kg/year· tionery,etc. 1980

tons tons

1. Nii;eri2. 102 2.8 145 8.3 52.54 436,000 4,000 440,000

2. Dahomey

93

^6.1 123

7.2

2.14 15,400 1,100 16,500

J.

^Toge

142 7.2

189 10.4 1.43 14,900 600 15,500

4. Challa 383 15.8 422 20.7 6.94 143,600 6,400 150,000

5. ^{Ivory Coast} 555 23.9 ⁸²² 36.6 2,65 97,000 1,000 98,000

6.

Liberia 653

9,5

1,o60 24. 0 0,64 15,360 1,240 16,600

7,

Sierra Leone 123 11.3 223 12.0 2. 35 28,200 1,800 30,000

8.

Guinea 106

9.7

150 13.8 3,05 42,000 42,000

9.

Gambia 100 15.3 138 21.1 0,32 6,700 300 7,000

10. Sene.;al and

2s.2Y

Lauritania 378 34.0 605 2.88 81,200 2,800 84,000

11. T-lali 99 11.3 139 12.5 3.48 43,500 500 44,000

12. Upper Vol tee ^ry() I, 6.1 187 10, 3 2.91 30,000 30,000

13. Nie;cr 106 6.8 281 14.6 1.96 28,600 1,400 30,000

Sul-region 154

7.2

220 11,8 83,29 982,460 21,140 1,003,600

~

See paragraph 3.9.4., Chapter

rr ' .

E / CN .14/nm/135 p~~.8 10

l. 6. Possibilities of' ni.eo"':;in,, t~e demar:..d

•

Ol the f'ourte2n countries in the West j.f'ricctn s~t-re.gion dooestic production llas just 2tarted only in t1:-.1Xe.e countries namely i':figeria, Ghana and J1~li. Higeria :prod1..1c0d some 12,000 tons of sugar, at its Baoi ta sugaJ: f~ctory i:::1 its second carr1paieT1 in the 1965-1966 seasoll ..

Gha.na has a -trial run in its AsL..a-1:;uare factory and 80 did lVIali at its Dougabougou plantation, Ar.otl:sJ:' factory a1; Komcr:1da ir. Ghana is to start operation i:'.l 1;he 1966-:967 aeason, 'rfnen in full prod'-lction, ,he Baoita plantation ir: Jli~eria "Will produce 30,00C tonsJ the A.suatuarE:

factory in Ghane will also prodcwe 30,000 tons and the Dougabou3ou factory in Lali will Produce 6 ,OOG tons of suf;;ar~ The Komenda factory in Ghana is expected to produce 18,000 tons. A refinery is being established at Dakar (Seaeeal) but this will on1.y refine imported raw s(,lgar. It is expected to c0t,me,1ce operation sometifi,e in 1967,

Apart from the above, feasibility studies a:id experiments on su₁:;ar- cane cultivation have been carried ou-t or are being carried out ir..

'.Dahomey, Ivory Coast i Sierra Leorie, Guinea, Senee::al and 'Upper Vol ta u.nd the sites for -su.g3,roane plantations tave also ·been decided upon. TO€;O is contemplating a join-t enterprise 1:i th :)ahomey, and f-'~auri tania wi t~1 Senegal. In Liberia, -though Sllgarcane is Dcir:e, grown. in small pa tchec indigenously fl investigations rsp.:,arding- a sui ta.ble locatio"n for a lar~;e- scale plantation for commercial manufacture of s;;.gar have not proved saccessful• so far.. In GamOia ₇ no mcve has yet been r::ade in this direc- tion, In l'Jiger, tho(,lgh the experiments with sugarcane have civen

encouraging results, no site for a plantation bx-is been :~ixed. Instead, the scttint; up of a refinery for refinine i:::1ported raw sugar is bein~~

ccnsidereC...

In all tl:le countries howev"'er,where efforts £1nv-e been made to set up the industry, the planning 0f production falls ooasiderably short of requirements as. envisaged in this st(,ldy for 1:)80, As such, an attempt

.,.

has been rr.ade in this paper to sug5 est ho,, the planning. could be elaborated to meet the situation in 1980 and what its iicplioations

Country

L Nigeria

2. Dahomey and Togo

3.

^Ghana

4.

^{Ivory Coast}

J!roduction require- ment 1980

1000 tons

440

32

150

98

J.~-Oo of produc- tion units required

14

2

6

3

-~'ABLE 6

,

_______

Capacity of each unit tons

cane per day 2,000

1,800

One of 2,000 - 2,500 exists;

one of 1,200

~ ~

exists; ) 4 of ) 2,000 to) be put )

up )

L:o,pacity tons sugar per

annum 30,000

16,000

54,000

96,000

2 of 2,000 60,000 1 of 2,500 38,ooo

PresGnt and possible locations

1 existing at Bacita; 13 more in Bacita region or north of Bacita, Adamowa Oba-Mosunmore (Abeokuta), cocoa belt, Do-Anambra (Onitsha), Katcha area, Koton-Karifi area, Fiakurdi and Ibi areas, Sokoto re-

gion, Kwale area (Aboh) and Bo- madi area (Uestern Ijaw)

Both in Athieme area or one in Athieme and the other in Togo,

the location of uhich has to be found

One existing at Asuatuare One existing at Komenda 4 more in Awakpe, Aweme Pra-canal area, Accra Plain

Tsito and Kete-Krachi

All in the region of confluence of Bandama and Maraoue

r/c1,.14/-r;Im/135 Page 11

Plantation area

4,000 ha.each 'lotal: 56,000 ha.

3,000 ha.each Total: 6,000

3,500 ha.

1,500 ha,

4,000 ha.each Total: 21,000

8,800 5,500 Total:

ha.and ha 19,300

---

Prodi:"t:\on require- 001.nrLcy ment 1980

'000 tons 5. Liberia 16,6

6. Sierra 30

Leone

7.

^Guinea 42

8, Gambia 7

9,

Senegal and 84

!t,auri tania

10. Mali

44

11. Upper Volta 30

12. I<iger 30 Sub-region 1, 003,6

No.

o:f C2,racity -(fri.p-w,0i t;/

produc- o:f each tons tion unit t:,ns sugar units cane per per

re9.uired d""·"'"

·-

^aru1un1

No possibility 1 2,000 tons

to be ex- 30,000 tended to

2,800 in :tuture

2 2,000 42,000

No scheme yet !:n--ros t:LGU t:.:..vn 2 2,000 1) 40,000

each, 1

to be ex- 2) 44,000 tended to

2,500 later

3 1 of 400 6,000 tons (ex-

is ting)

1 of 1,200 18,000 1 of 1,500 22,000 l 1 of 1,800

to be ex-

tended to 30,000 2,400

No site selected yet 34

Pre;;ent and possible locations

Tornabum

Medina-0ula called for

1) Richard-Toll 2) Divel

l~

Casamance valley Fodor and Matam

5) !fJ.aUri tania, site to be ::ielected

Dcugabougou

Diaraba.koko

Plantation area

5,000 ha

Total: 5,000ha_

6,000 ha each Total: 12,000 ha.

8,300 ha.

6,600 ha.

Total: 14,900 ha

4,000 ha- 4,000 ha·

Total: 8,000 ha . 4,200ha_

Total: 4,200 ha

141,400~

' \

..

E/cw.14/nrn/135

Page 13

would. be, Table 6 indicates the requirements in respect of area of the plantations, the number and sizes of factories to be established.

in each country and. the present or possible future locations,

It will be seen that there will have to be 34 sugar factories and 141,400 hectares of total area to meet the need.s of 11 countries out cf 14 in the sub-region,

1,7, Sub-regional self-sufficiency

It is found. that Liberia, Gambia and. Niger have no immediate possi- bilities of setting up their own sugar industries, Fortunately, surplus areas are available in Ghana, Se'1e1cal, Mali and Up_;;,er Volta, Therefore the requirements of Liberia may be met by Ghana, those of Gambia by Senegal and. of Niger by Upper Volta, The position would. then be as follows,

Prod.uo- No. of Capacity Capacity

tion re- tons tons

quirement units Location

cane per sugar

1000 tons d.ay per

season

In Ghana for Liberia 16. 5 1 1,500 18,000 Accra plain In Senegal for Gambia 7,0 1 1,000 12,000 Gambia

river basin in Senegal, Casamance Valley or at Pod.or

& Matam In Upper Volta for Niger 30.0 1 2,500 30,000 In

Sourou Valley The total number of uni ts in the sub-region wi 11 therefore be 37 and.

the total area 150,600 hectares, The total installed. capacity will be 70,000 tons cane per d.ay distributed. over 37 units of which one will be 2,bOO tons cane per d.ay, 2 of 2,500 t/d.; 25 of 2,000 t/d.; 3 of 1,800 t/d;

2 c,f 1,500 t/d.; 2 of 1,200 t/d.; one of 1,000 and one of 400 tons cane per

daJ'•

Area re- quired

3,000Ha 2,000Ha

4, 200H2

E/CN, 14/L'TR/135 Page 14

1.8.

By-products utilization

'. ..

In order to make the sugar industry fully viable, utilization of its by-products, namely ba₆asse, iil ter cake and molasses, is impor·,ant.

Froi,i this point of view, suggestions have been made as to the manne1' in which the by-products could possibly be utilized, These are briefly indicated in Table

7

below,

Country 1. Higeria

2. Dahomey Togo

3,

Ghana

4,

Ivory Coast

5,

Sierra Leone

6. Guinea

&

'I'A:BLE

7

Bagasse

Production of paper &

pulp in ^. view ^{• O.t. +'} coal &

fuel oil availability in Nigeria if cheaper cellulosic material is not available from forest resources.

Fuel

Paper & pulp provided cheaper cellulosic raw material is not available from forest resources.

F\lel

J!\lel

Fuel

Filter cake Production of wax as the de- mand for hard.

waxes is likely to be consider- able, Also as manure,.

~1anure

Cane wax, as the demand. for. hard.

waxes is likely to be consid.er- able; & also manure.

Cane wax and manure

Manure

Manure

liolasses

1. Product:. '.)n of in-·

dustrial & potable alcohol, Distil- leries cf 68,000 and. 136, ,JLJO HLo 2n Proci.uct2.on of' food

yeast (five rlants).

Pota"til8 AJ c,cho1 .. •-

Two distill;,i·iGs 15,000 EL e.1cb •

Potable Alcohcl -- Five tistilf8;fes

15 ,ooo

B:1,

Food Yeast - One 12lant 10 tons ja;_":,,.

Potable Alcohol

Two distilJ~~ies each of

45,000

Ji::...

lo Potable l1.l.9~oh0l - One rhs"c:'. llery 10,000 J[I,,

2. Ca'ttle fesd 1, Potable Alcohol

One distilJery 4,500 RL; Ol1e

25 ,COO EL,

2. ~"o.:l'l. Yea;; t -- One plant 10 fons/ day,

Country 7. Senegal &

~:;auri tania

8. !P.ali

9.

^Upper Volta

TABLD

7

(Continued) Bagasse

Paper & pulp subjeot to cheap substitute fuel beins available.

Fuel

fuel

Pilter oake Cane wax and manure

!hanure

kanure

E/CN .14/urn/135

Page

15

molasses 1. Potable Alcohol

One distillery

45,000 HL;

One 10,000

HL.

2. Food Yeast - One plant

5

tons/day.

1. Potable Alcohol - One distillery of 10,000 EL.

2. I<'ood Yeast - One plant 10 tons/day, l. Potable Alcohol -

Two distilleries, each 15,000 HL.

2. Cattle feeding,

The ab-"ve table will show that considerable quantities of industrial and potable aloohol would be produced which would otherwise have to be

imported at the expense of considerable amou...-vits of foreign exchange.. It would also be a source of substantial revenues to the Governments concerned by way of duties on alcohol and alcoholic liquors which are usually high, 1.9. Ancillary industries

Domestic production of sugar will encourage the setting up of con- fectionery industry, biscuits manufacture and canning of fruits. While it

has not been possible to gauge the extent of development that would take place in the manufacture of biscuits and canning of fruits, estimates of confectionery requirements have been made, The number of confectionery units required in each country are biven in 'I'able 8 below,

in n:ost of the West African countries, consumption of cube sugar is substantial. It will thus be necessary to put up cube s1.,."ar making

plants also. The requirements of such plants are also indicated in Table 8,

. '

E/cu.14/nrn/135

Page 16

TADLE 8

---~--- ---

Country

1. Nigeria

2. Dahomey e.nd

Toso

rfo.

of confectionery tcr.i ts - 3 tons/day

ca aoi t- Bight Two

No. of cube-maki,~g plaat,,

Two plants each ^(:f 100

liODS per day

Two plants each ^(>I 50 ^tons per d.ay

3, Ghana Three Two plants each ^{( i f} 100 tor:s

4.

^'Ivory Cca3t

5.

^Liberia

6. Sierra kor~e

7.

Guihe&

8.

Gambia.

9.

Sensga:i... and 10. J.!ali

?,iauri tania

i:::wo (from im:portod sugar)

One

pe:r day

F'cu.r plat.ts 50 tons ;er day

One al~eady in e~istence 11. Upp,ar Vcl t8'

Three One

One One plant - 50 to,1s per dc1y

·---· ·--- -·•-·--·••

1(110. Fir~ancial re~irements

According tc, the pl3n formulated, th•? broad financial req_uiremen cs bas9d on precel1tM~;Jay prices a.re found -t;..J ;)e as follows in IJ.;able 9,.

It will be sc.ou that the tctal cr,pi tal outlay nGcessary in the fc.rst instance to sP.-;; tlP th0 industry in West Africa is of the order of USS; 660 million of 1:hi0~ al•ou t US$ 460 t1illion is on su.15a.rcane plantations ar./l.

about US~~ 200 million en various types of :..ndustrial u:ci ts.. To the a:Jove must be added tne invest1cants that would be essential on sugaroane

ments, hydrological and pedol.ogical stcHlies, land clearance and hydro-- projects ar.cI sotti1:5 up of or1,;a,1izations fo:: research, train;ing and eub- regional oo--orclina tion,

..

' ^.

\

1.

2~

3.

4.

5.

6.

7, 8.

9.

E/CN, 14/INR/135 Page 17

TABIB 9

Million US$

Sugar-: . Sugar Cu.'be Con- Distil- Food Cane ^I

cane facto- sugar fee.ti- leries Yeast wax Total plan ta•- ries plants onery plants plant

tions

Nigeria 190.40 57,40 ll.20 3.36 2,80 6.72 0.14 272,02 Dahomey &

28.00 8.40 3.36 0,84 0.56 41.16

To1,,o

Ghc.na 70.00 20.44. 5,60 1.26 1.40 0.84

o.

14 99.68

Ivc,ry 42.00 14. 00 6,72 0,84 1.40 0.14 65.10

Goa.st

Sierra 16,80 5.60 0,84 0.21 0.56 24.01

Lecne

Guinea 33,60 8,40 0.85 0.84 43,69

Ser:.egal & 30,80 11.20 1.26 1.61 0,84

o.

14 45,85 Mauritania

Jl!a}i 19.60 6.16 0.42 0.21 0.84 27.23

Uprer 28.00 10,08 1.68 0.42 0,84 41,02

Volta

Sul-region 459.20 141. 68 28,56 9.24 9.88 10.64 0,56 . 659.76 l.ll.

The employment possibilities that would be generated by the settin₀ up cf industrial units referred to earlier are sho,m below, These again are broad estimates,

The total employment potential for the sub-region comes to 103,120 workers of which 80,000 will be in the plantations and the rest in the industrial units, There would be no dearth of unskilled workers in any country. Difficulty will, however, be experienced in regard to middle- level technicians but this too with advance planning and development of technical education, is bound to disappear, High level expert staff will have to be imported for some time till the local talent is able to replace them,

E/CN .14/INR/135 Page 18

TABLE

10

Number of workers expected to be employed in the various undertakings

Sugar- Cube Con- Dis- Food Cane

Country cane Sugar sugar feet- til- yeast wax

planta- factory plant ionery lery plant plant tion

Nigeria 35,000 7,000 600 800 150 800 30

Dahomey & Togo 4,000 1,000 150 200 100

Ghana 10,000 2,000 300 300 200 100 30

Ivory Coast 7,500 1,500 600 200 100 30

Liberia 200

Sierra Leone 3,000 600 200 50 100

Guinea 7,000 1,000 50 100

Senegal ^& Mauritania 5,500 1,400 300 100 100 30

Mali 3,000 900 100 50 100

Upper Vol ta 5,000 1,200 150 100 100

Sub-region 80,000 16,600 1,800 2,400 900 1,300 120

I

Total

44,380 5,450 12,930 9,930 200 3,950 8,150 7,430 4,150 6,550 103,120

\

1.12. Gross valu8 of ⁰¹~.,i

E/CN,14/Ilm/135

Page 19

·Jlhe outputs of sugarcane, sugar, molasses, alcohol and food yeas"t ir: the West African sub-ree:,·ion and their gross values would be as given in Table ll.,

It will be seen frorr. Table 11 that the total gross output values f'o!· the different commoditi0s at prices noted against each would be of t"e followin& or1er.

Q.,.anti ty Rate V1c:lue

Million US$

1. Sugarcane 9,633,000 tons US$ 7.0 per ton 67 ,50

2, Sugar 1,010,000 tons US$170,0 per ton 171,70

3. 14olasses 351,500 tons ^US$ 30.0 per ton 10.55

4,

^Alcohol 595,000

HL

US$ 30,C per

HL

17.85

5, Food yeast ,900 tons US$300,0 per ton

9.87

1. :;3. Value added

The value added from sugar manufacture would -be a-bout 75 per cent of tl:w oi;,tput value of sugar namely abou1, US$ 129 million,

1. :4~ Phasing of inves·l;ment

As the development of land, setting up of ,he sugarcane plantations ar.•.:. sugar factories and their coming into reg-tlar production takes a ps:iod of about five years and as it may not be possible to take up the entire programme planned for 1980 in one phase, the investment may be phased in two stages, In tL.e first phase, the requirements may be covered up to 1975 and in the second the remaining programme may be oo~pleted up to 1980. The industrialization and investment up to 1975 would be broadly as follows in 'l'able 12.

JcN _{• "} l"/rv,/135 ,. • """ •"-'r -

. -·=:..e:a 20 r:L;Al;L.8 11

..

:.)1-1,tput

---

ar::rl Gro,::;e Val-.;.(-;; of 8•:!g-:.·~rcs.nE:.2...§.~!£~!'.l.. bola::;,s es, .Alcohol t:.nd Food Yeast

__

^,

^___

Suea:r~~ Value in Dugar Vah:e in lfolasses Value in Alcohol Value 1n Food Value in Country cane pro- ir..illion produo- million produc•- million produc- million yeast million

duct ion

us~

tion US$ tion CS$ tion US$ produc- US$

•ooo

^tons

•ooo

¹000 tons ¹000 ^{;{L tion}

tons ¹000

tons

I!igeria 4,000 28.00 440 74.80 154.0 4,62 204.

o

6.12 23.0 6.90

Dahon:ey and

356

2.49

32 5.44 12.6 0.38 27,0 0.81

Togo

Ghan'.:l 1,680 11.76 16f#I 28.56 59.3 1.78 124,0 3,72

2.5

0.75

Ivery Coast 980 6.86 98 16.66 33,6 1.01 84.0 2.52

Sierl'a Leone 334 2.34 30 5.10 12.0

o.

^{36 20.0 0.60} 1.4 0.42

Guineet 467 3,47 42

7.14

^16.8 0.50 26.0

o.

78 2,0 0.60

Senc::al and.

820

5.74 9r}!/

16.32 27.2 0,82 50, O 1.50

1.5

0.45

Eaur:. tur.ia

f:lal i 440 3, 08 44 7.48 16.0 0.48 10.0 0.30

2.5 o.

75

Uppc,:· Volta 556 3,89

6cf.l

10.20 20.0 0.60 50.0

1.50

Sub-~·~-&;ion 9, 633 67.63 1,c10 171.70 351.5 10.55 595.0 17.85 32.9 9.87

~ Ir!Cludes prod1-.1e tion for Lil:eria,..

El

ir:cludes frGduction for ^Ga;:ibia~

£1

Includes production fer 1,iger.

'

TABLE 12

;s/cu, 14/nrri/135

FaJB 2:1_

Industrialization and Investment Programme to be aohieved_:bL.l;)..12.

Est¹d, Est ^Id, Produc- sugar produc- tion to

Country demand tion be

1975 ^{from ex- achieved}

( 1000 isting ^{( 1}000 tons) units tons)

( 1000 tons

Nigeria 252 60 192

Dahomey

&

^Tngo 24

24

Ghane. and _Liberia 126 54 72

Ivor;j' Coast 72 72

Sierra Leone 22 22

GuinE,a 30 30

Seneg·al,

Mauritania

&

_{72 72}

Gambia

Units to be put up

Six plantations & sugar factories one 68,ooo HL distillery. Three food yeast plants. Two cube sugar plants,

One plantation and sugar factory one distillort 15,000 TIL one

plant. cube ~:~c:a:r Three plantations & Fmga.!."

factoI·ies; tlr1;ee d.:i.:::: Jil- leries 15 ,ooo HL; ^•.:>no cube sugar plant

One planta·cion

&

fac,tory of 2,500 t/d, One planta- tion

&

factory of 2,000 t/d. One distiller:r 45,000 HL, Two ^CU-iJe

plants.

One plantation

&

factory of 1,800 t/d, One distil-- lery 10 ,COO HL,

One plantation & factory of 2,500 t/d, One distil- lery 2 5 , 000 HL,

One plantation & factory of 2,500 t/d, One planta-- tion

&

factory of 1,000 t/d, One distillery 45,000.

One food yeast plant

5

t/d,

Invest- ment re- q_uired (million US$)

118.44

20.16

58024

42,oci

18.41

21.70

28,8~.

E/CN.14/DIR/135 Page 22

,

TABLE 12 (Continued)

Est' d. Est¹d. Produo- Invest-

sugar produo- tion to ment re-

Country demand tion be

Uni ts to be put up quired

1975 from ex- achieved (million ·

( '000 isting ( '000 US$)

tons) units tons)

( 1000 .d;cns

Mali 30 30 One plantation & factory

of 1,500 t/d.

One distillery 10,000 HL. 17 .57 Upper Volta

&

45 45 Two plantations

&

factories Niger

of 1,800 t/d each, One dis- tillery 25,000 HL, One cube

plant. 37

.so

Sub-region 673 114 559 363.22

It will be seen that the total investment in the sub-region in the first phase would be of the order of US$ 363 million out of the total for 1980 of about US$ 660 million,

'

^p

1C\T ., 4/TNq/1 '5

__ i I -· .:i.. -'" - - - J

~age 23

With a view to e.ohi.ev;_ng the objec.;bive of de-relo:ping the sugar indllstry in the Wes't Afi icc".n sub-re.g:~G:1 'Jy 1980, ths following recom-- mendations are mEde~

2, 1. The sugar industr;y has sever,ll uniq_ne li.d.vantages, viz,,

(i) Sugar is nn important i te01 ci' human consu.m:ption. It :i.s not only a swoetening aS,·en.-l.i b1-:t r.rov·idec b2.sio r.1.u.tri·tional ra-

. ^~

quirert2n ud.

(ii) The su~2:...-- indust:,;:l i.s :_-i,:1, agro--•i_:--~,scd :i.nC.u.stry necezsa~ily situ- ated i~1 :.~ural ar.J2.s,\ It thGref0::._--e b2•jngs procpe~·ity to su0h areas di1'0ctl; .. ·.

the fba~.a:r.C(--; o:·. rc.yment:J¹ })OC;~.tiono

other l''"~:11ul-::.:<J::.o 1.3.W ma-1:,e.:.i:-: __ c,l ::.s i::.1 2:'_ort c·-1.pp~.;Yo The filte~

cake can ~JG r:TLuJ.~nerl to -~he so::_1 as ,-i, goc,d manureo It o::1n also bo usod :for the extraction of 3 he.rd uax fo:~ manufacture of ca1·bon paper, zb.ve, floo:' p,110. ot!:e-L" polisheD for whi,Jh

Car·nub~ o.nd I11:J:i,yr,,q;.'1e ·wa:::;:0.s l12va to be it;iported ::.n most cm1nt:r.-ies.

:Molasses c:,n be 00;;1vc.:rted. :i_11"~0 2.l0oh')l f-"Jr industrial. O:!:' p')table

f:i:on ^:i_. t .

E/CN,14/INR/135 Page 24

In a tropioal region like West Africa, climatic conditions are essentially favourable for the production of sugarcane, Development of the sugar industry in West Africa is therefore an economic p1·oposi- tion,

The study made reveals that in most of tLe count;-ies of the ^,3\lo- region, the other essential requirements, besides climat3, which a.~e conducive to growing a good crop of sugarcane and for satting up~

sugar factory, are available. Therefore there seems to be no doubt that a viable sugar industry can be set up in the sub-region,

It is believed that in the course of years the world consumpt:;cn of sugar will outpace production. It is therefore necessary that suuh countries, as have the potential, should develop their own sugar

industries,

Most of the West African countries have the potential and they should therefore take the necessary steps to set up the industry in their countries,

2,2, As the process of development takes four to five years it is neoessary to take early steps.

2,3, On account of the size of the country, Nigeria's requirements are very large, It will therefore have to explore saveral regions for setting up the required number of sugarcane plantations.

'

2,4, Liberia, Gambia and Niger may pursue effor·os to find suitable loca- tions for sugarcane cultivation in their own countries. Liberia may investigate the possibility of setting up a farmer-based unit in the Kolahun regisn, Gambia needs only a small plant and it may be possible to looate the area required for a sugarcane plantation in the Katchang- Illiasa area particularly in view of undergrouml water being available.

The area should be free i'rorr, salinity, Niger may explore the Gaya region which appears to possess favourable conditions,

If, however, a sugar industry cannot be set up in these countries, their requirements will have to be met by neighbouring West African

''

E / CN, 14/INR/135 Page 25

oountri.es. Gha;11a may meet the requirements of Libel'ia, Senegal that of Gambia and Upper Volta of 1hger, This will not only ensure sub-

regional self-sufficiency but promote inter-State trade and co-operation in the sub-region.

2,5, In view of the above, Gi1ana, Senegal and Upper Volta will have to develop more plantations than needed for their own requirements, The Accra Plain in Ghana, the Gambia river basin in Senegal and the Sourou river valley in Upper Volta will have to be developed soon,

2,6, It will be seen from paragraph 1,10, that the financial requir•ments fJr sett1ng up the industry in the West African sub-region are quite

,Dnsiderabl'e, Most countries in the sub-region do not have the necessary f.inancial resources to implement these projects. It appears essential therefore that.financing agencies such as the World

Bank

er the Inter- national Finance Corporation take up the task of providing financial aasistance by .way of loans on easy terms to such countries as may·need

t?te!l'!,

2,7, It may be advantageous to create a special fund for the purpose, 2,8. A technical cell may be created to advise the finenci:llg agency regarding the feasibility of proposals requring financial assistance.

·This technical body may also advise the countries on machinery speoi:fica-- tions, selection of machinery and on ad hoc operational problems.

2,9,· In setting up the industry, it will be necessary for most countries to safeguard their nascent sugar industries from external competition.

:Scree 'meas~re of p1>otection may therefore be granted to their national su,§;ar industries, In granting protection to an industry, usually the f.c llowing ori teria are requirsd to be fulfilled,

"t

(a) The industry must be one possessing natural advantages, such as adequate supply of raw material, sufficient supply of labour and a large home market;

(b) The industry cannot wi:t;hout protection develop so rapidly

C' ~ . '

· · as is desirable in the interest of the country;

E/CN, 14/I:rR/135 Page 26

(c) I'he industry has promise of eventually meeting external competition,

'

(d) It is an industry from which advantages o:f large-scale produc- tion can be achieved and in which increasing output would mean increasing economy of production;

(e) The industry will in course of time meet the whole needs o:f the country.

It is seen that nearly all the above criteria can be fulfilled by the sugar industry in most o:f the countries of the sub-region.

2,10, A sugarcane plantation and sugar :factory usually take a period of about five years to come into regular production and may need help or support during the initial period, The Governments concerned may provide such help to the extent necessary,

2,11, The set up of she industry in each country will naturally cont.rm to the political philosophy of the country, For the cane sugar industry however, it is found that a plantation-based industry is conducive to yielding the best results, Sinoe the industry must benefit the :farmers also, the farmers in the vicinity of the plantations may be associated in the supply of raw material to the sugar factory in as large a measure as possible,

2,12. The farmers will need considerable assistance and guidance

in,

scientific cultivation o:f sugarcane arid this may be provided by the expert's of the plantation, Assistance in respect o:f seed, fertilizeri,, etc, may also be provided,

2,13, It is observed that the sugarcane plantations do not or possibiy cannot possess adeQuate means for the protection of their crop from the incidence of insects, pests and diseases, The State Departments of

Plant Protection will have to provide the necessary assistance for which, if necessary, such Departments may be strengthened in staff and equipment.

2,14, In importing seeds of new sugarcane varieties the stri•teat quaran- tine measures will have to be adopted so that diseases or pests do not enter the plantation area,

E/CN,14/INR/135 Page 27

2.15, In cmmtries where financial resources or technical experience is lacking it would be desirable to associate private industrialists pos- sessing the necessary experience in putting up and running the projects.

2.16, For running the sugar industry successfully and efficiently a large numb3r of technically trained persons is needed, The countries concerned

should take advance steps in getting their nationals suitably trained, For technology relating to sugar and sugarcane there are sugar.schools in India, Hawaii and Lcuisiana where training may be arranged,

2,17, Research is the life-blood of industry. In order to sustain the industry in West Africa at a high level of efficiency, a central sugar rese~rch institute may be set up in Accra or Abidjan where continuous research on sugarcane and sugar problems may be carried on. In course

o{ time, training can also be provided at this institute. This institute may also co-ordinate the technical activities of the industry in the sub-region.

2.18, A central co-ordinating authority may also be created for the sub-region for planning and regulatin;; production in the sub-region.

Sho1·tages in one sector due to iaclement weather or other reasons may, by advance planning, be made good by possible surplus in another sector.

Thus cycles of over- or under--production could be avoided.

2,19, As far as possible, the set up of the industry, namely the planta- tions, the sugar factories, and the by-product and ancillary industries, should be an integrated one. This will be conducive to obtaining the maximum economy and the lowest possible prices for the consumer,

2,2C, Some of the important materials which are req_uired in the sugar ind.u stry in appreciable g_uanti ties are, fertilizers (HPK), limestone, sul,hur, phosphoric acid, caustic soda, activated carbon and gunny bags, Most of these have at present to be imported into the sub-region.

Necessary steps may be taken towards the exploration and production of thee e i terns within t:1.e su b-re6i on.

E /cN, 14/nrn/135

Page

28

3,1.

Nigeria

(;HAPPER IV 3, G01JliTR Y-,GSE F.EPORTS

The imports '.)f beet and eane m;.gar refined (granulated and cubes) into Nigeria, from 1960 to 1965 we.re as follow3:

·--··---

Qµantity in Vs.lue in VaL.J..e in Average .

,,.

0111 o.,. •

1,000

^,n, tvns million

_"' -

^million

Bterling US$

..

^{per ton US$}

v"alue per

1960

67. 3 3. 79

10,60 56,2 157,4

1961 57,8 3 .. 00 8.40 5L9 145,3

1962 74,3

:L 23

9.04 43,4 121,3

1963

^~-' ..IC"-"-

3.45 9,66

66.2

185,3

1964 39,3

2~92

8.16 74,1 207 ,5

1965 98,2

2,51

7 .04 25.6 71.7

-~--- --.--~ ·-

^,,.,.,.~ ·-•--··'"

Average

6,j. 8

3~

8,82 48,6 135,8

---·---· _____

^.,,

___

Source: Fecie.:::al Office of Statistics;; Lagos, Migeria.

The stocks have been absortad over the years and re-exports being negligible, it oan be as~,umed that the :::verage oonsumption of sugar in Nigeria, during the GLt-yGar period, has been of the order of

65,000

tons per year, Tho average c, i.f. value paid has been about l;,

3, 15

million O::::' US$ 8~8 will5.on :per year.

The major q<.1antc.ties of sugar were imported from the United Kingdom, France, Czechoslo,.cakia, Foland, Hungary and USSR.

ton

'

E/CN.14/Ilrn/135

Page

29

The consu.mption of confectionery in Nigeria has been as follows":

Year Qµantity Valu.e in Value in

tons

1,000

a;, million

sterling US$

1960 2,430,0 476,3 1,33

1961 1,952.0 407 .1 1,14

1962 1,676,0 37 3,5 1.04

1963 976.0 249,5 0,07

1964 1,180.0 318,5 0.89

1965 1,299.0 281,4 o. 78

Average

1,585.0 351.0 0,98

SourJe: Federal Office of Statistics, Lagos, Nigeria,

It ,ill be seen from the above that the average consumption of confectionery has been of the order of

1,600

tons per annum, and its average c,i,f,

valu,e ., 0,

35

million or US$ 0,

98

million.

3,1,2,

Foreign exchange involved

From the foregoing paragraph, it will be seen that the average c,i,f, value paid or the foreign exchange spent per year for sugar and confec- tionery has been of the order of a;,

3,5

million or about US$

9,80

million, ,3, 1,3. Distribution

The imports into Nigeria were largely through the ports of Lagos, Apapa and Port Harcourt, The map of Nigeria at Annex II will show that there is a good system of rail and road communications connecting these ports with the important towns in the interior, !Viost important towns show~ in the map have wholesale markets for sugar, Messrs, Tate and Lyle of London have set up depots in these towns for the distribution of s11gar,

E/CN. 14/nrn/135 Page 30

3,1,4, Price

It is understood that there is a duty of 2,0 d or 2,3 US cents per pound on refined sugar, The present (April 1966) price for refined

sugar is ii. 106 or US$ 296,80 per ton, 'rt,e cube sugar sells at 12 - 13,25 d per pound or t 112 to 123,7 per ton,

3,1,5, Demand for sugar in 1980

It will b.e seen from the statement at Annex IA that the 1963 level of per caput consumption in Nigeria was 2,8 kg year which is very low, This may be due either to low purchasing power or to restricted supply.

However, in relation to the trend of consumption in other countries and with GDP per capu t going up to US$

145,

the per caput consumption is expected to go up to 8,3 kg/year (Annex IC), The population (in the monetary sector) is expected to rise to 52,24 million by 1980 and the total demand for sugar would then be 436,000 tons,

As regards confectionery, it may be presumed that the demand may go up to about 10 per cent every year over the present average consump- tion of 1,600 tons and would be about 6,600 tons, Assuming that one- third of this q_uantity will be toffees and the rest hard-boiled goods, the sugar req_uirement (30 per cent for toffees and 75 per cent for boiled goods) 11ould be 3,660 tons, This presumes that a confectionery industry would also be set up.

Thus, the total su5ar req_uirement would be (436,000 + 3,660) ~

439,660 tons or, say, 440,000 tons.

3,1,6, Possibilities of meeting the demand by domestic production A, Existing production

Though some 20-30 th01isand acres of sugarcane have been cultivated by small holders in nume·rous small plots of land of two acres or less, mainly around the towns of Zaria, Katsina and Kano, most of the sugar- cane is consumed for chewing purposes and only about 10₉000 tons ·of crude sugar is made, The demand in the country being largely for white