Although Africa produces most of the world’s cocoa, it receives only a small share of the profits from the global chocolate industry. The main reason is that many African countries export raw cocoa beans instead of processing them into higher-value products such as cocoa butter, cocoa powder, and chocolate.
The chocolate value chain is most profitable at the stages of processing, manufacturing, branding, and retailing. These activities are largely carried out in Europe and North America, where major chocolate companies and well-established brands are based. As a result, much of the value added to cocoa is created outside Africa.
African cocoa-producing countries also face challenges such as limited industrial capacity, inadequate infrastructure, high production costs, and restricted access to finance. These factors make it difficult to compete with established international manufacturers.
Consequently, while African farmers and exporters supply the raw material that drives the chocolate industry, they capture only a small portion of the final value. Expanding local processing and manufacturing could help African countries create jobs, increase export earnings, and gain a larger share of the wealth generated from cocoa.