Industrial processing of local cereals especially of wheat, millet, sorghum and fonio

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Industrial processing of local cereals especially of wheat, millet, sorghum and fonio

Country
Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Sub Sector
Most major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Agriculture
Indicative Return
Describes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in ROI)
Investment Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market Size
Describes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
5% - 10% (CAGR)
Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct Impact
Describes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Decent Work and Economic Growth (SDG 8) No Poverty (SDG 1)
Indirect Impact
Describes the secondary SDG(s) the IOA addresses.
Reduced Inequalities (SDG 10) Gender Equality (SDG 5) Climate Action (SDG 13)

Business Model Description

Invest in the primary and secondary processing and packaging of local cereals primarily sourced from local producers, cooperatives or Economic Interest Group through contracts. Processed products can be flours or traditional products such as Tiéré, Tiakry or Arraw for instance destined to both the local market and export through B2B or direct sales to consumers.

Expected Impact

Expansion of local cereals production and processing contributes to the climate resilience of the sector, reduce post-harvest loss, improve food security and nutrition and empowers women.

How is this information gathered?

Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.

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Country & Regions

Explore the country and target locations of the investment opportunity.
Country
Region
  • Senegal: Dakar
  • Senegal: Nord
  • Senegal: Centre
  • Senegal: Sud
Learn more

Sector Classification

Situate the investment opportunity within sustainability focused sector, subsector and industry classifications.
Sector

Food and Beverage

Development need
Senegal faces low food sovereignty and imported 70% of its food products in 2024. It also faces low food security with 21% of the population being food insecure, in 2023. The sector is also characterized by a low productivity, contributing 15.5% GDP in 2024. Finally, the sector is a significant contributor to GHG emissions but is vulnerable to climate change (1, 2, 3, 4).

"Policy priority
The Strategie Nationale de Developpement 2025-2029 aims at increasing the agricultural productivity and fostering its modernization. The Stratégie Nationale de Sécurité Alimentaire et de Résilience 2015-2035 highlights the need for increased and diversified agricultural production as well as the importance of food processing and conservation to enhance food security (5, 6). "

Gender inequalities and marginalization issues
Women represent more than half of the country’s labor force in the rural sector and significantly contribute to agricultural production, being highly active in processing and marketing of agricultural, livestock and fishery products. Yet, only 6% of them own agricultural land. For the others, their access to land largely depends on men relatives, who owns the land, affecting their land tenure security. Coastal agricultural communities in Senegal also face heightened climate risks due to sea level rise, flooding, and erosion, adding to broader national vulnerabilities linked to erratic rainfall, rising temperatures, and desertification. Finally, climate change reinforces food insecurity particularly for the poorest households (7, 8, 9, 17).

Investment opportunities introduction
Senegal agricultural sector contributed 15.5% of GDP in 2024. To increase the sector productivity, investments in means and tools of production is key. It is particularly the case in agricultural mechanization, adapted storage and water management for agricultural production (5, 10).

Key bottlenecks introduction
Senegal’s agri-food industry faces climate vulnerability, low processing, poor infrastructure, and low mechanization, as well as weak market access, price volatility and weak regulations. The low access to finance and insurance reinforced farmers vulnerability. Strong dependence on imports and competition also are structural challenges for the sector (11, 12, 13).

Sub Sector

Food and Agriculture

Development need
Senegal’s agricultural sector faces low productivity with 30% post-harvest losses and low processing capacity, resulting in productivity 30% below the national average and low added value. Post-harvest loss cost USD 167 million annually. Climate change will affect traditional cash crop production such as ground nuts with decrease in yields between 5-25% (11, 14, 15, 22).

Policy priority
The Strategie Nationale de Souverainete Alimentaire (2024–2028) aims at reducing food imports and ensure self-sufficiency in key food products, such as cereals, key vegetables, eggs and milk production. The Stratégie Nationale d'Industrialisation encourages increased agricultural product processing through the development of infrastructures (12, 16).

Gender inequalities and marginalization issues
Poverty is highly concentrated in rural groundnut production basins—especially Diourbel, Kaolack, and Thiès—which together host about one-third of Senegal’s poor, compounding climate vulnerability for smallholders, including many women. In addition to climate vulnerability (floods, drought and storms), women in the agricultural sector also face significant challenges related to their land tenure rights and their limited access to financing mechanisms, production inputs, and extension services, as well as restricted market access. Finally, climate shocks particularly affects the livelihoods of rural households relying on livestock and agriculture for subsistence (14, 17, 18, 21).

Investment opportunities introduction
Senegal’s Climate Smart Agriculture Plan prioritizes investments in solar irrigation, climate-resilient seeds, storage, and climate services to boost the sector's modernization and resilience. Processing and high-value agricultural and fish products are also key to increasing the sector value added (9, 19, 20).

Key bottlenecks introduction
Limited irrigation, degraded soils, low mechanization, and weak rural infrastructure are major challenges to the agricultural sector productivity, as well as difficulties in feeding and watering livestock, problems related to animal health, access to quality seeds and intrants and the high climate vulnerability, particularly threatening rural livelihoods (12, 13).

Industry

Agricultural Products

Pipeline Opportunity

Discover the investment opportunity and its corresponding business model.
Investment Opportunity Area

Industrial processing of local cereals especially of wheat, millet, sorghum and fonio

Business Model

Invest in the primary and secondary processing and packaging of local cereals primarily sourced from local producers, cooperatives or Economic Interest Group through contracts. Processed products can be flours or traditional products such as Tiéré, Tiakry or Arraw for instance destined to both the local market and export through B2B or direct sales to consumers.

Business Case

Learn about the investment opportunity’s business metrics and market risks.

Market Size and Environment

CAGR
Describes the historical or expected annual growth of revenues in the IOA market.

5% - 10%

Critical IOA Unit
Describes a complementary market sizing measure exemplifying the opportunities with the IOA.

Processed products from millet represent 86% of urban households expenses on average (29).

In 2025, revenue from manufacturing increased by 5.4%, with 7.7% of growth in sales of processed food products compared with the same period in 2024 (31).

Millet average consumption in Senegal reaches 30.2 kg/Personne/year (30).

Indicative Return

ROI
Describes an expected return from the IOA investment over its lifetime.

5% - 10%

According to an investor's experience in the extension of processing of local cereal, a ROI of 9 to 11% can be expected (34).

Investment Timeframe

Timeframe
Describes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.

Long Term (10+ years)

According to an investor's experience in the extension of processing of local cereal not covering the production, ROI can be expected after 5 years or a little more (34).

Ticket Size

Average Ticket Size (USD)
Describes the USD amount for a typical investment required in the IOA.

USD 1 million - USD 10 million

Market Risks & Scale Obstacles

Market - Volatile

Cereals prices on the local market are highly volatile and affected by global crises, which might affect the profitability of the business model (32).

Business - Supply Chain Constraints

The low quality of the local cereal production might decrease the profitability of the model (34).

Impact Case

Read about impact metrics and social and environmental risks of the investment opportunity.

Sustainable Development Need

In Senegal, cereals are highly affected by post-harvest losses, amounting to approximately 30% of the production. These losses undermine the national food security and farmer incomes (12, 33).

Certain varieties of millet grown in Senegal can sequester higher levels of carbon in the soil, representing an untapped potential for climate change mitigation and sustainable agriculture (36).

Gender & Marginalisation

Small rural grain farmers achieve low yields and have low income, increasing their vulnerability to poverty and food insecurity. In 2021, the net average annual income of small producers was of USD 500 (XAF 278,000), compared to USD 3,430 (XAF 1.9 million) for medium or large producers (37) .

In Senegal, the processing of local cereals is mainly carried out and managed by women, 98% of those involved in the artisanal and semi-industrial processing sector being women. However, they face barriers to accessing resources and markets (30, 38).

Average consumption of millet reaches over 100 kg/person/year in some peanut-growing regions (Kaolak and Kaffrine), compared with less than 8 kg/person/year in Ziguinchor for instance, illustrating significant regional disparities. In 2022, millet, corn and sorghum prices rose by 33%. As some regions rely heavily on local cereals for their food intake, they are particularly vulnerable to price fluctuations (30, 39, 40).

Expected Development Outcome

Expanding local cereal processing supports a more balanced trade deficit by contributing to the Government's objective of enhancing exports of processed cereale-based products (12).

Processing of local cereals expands sales opportunities for producers improving their income generation, while strengthening the country’s resilience to climate change, as millet for instance, is drought-resistant and grows on degraded soils (9, 35).

Increasing processing of local cereals increases national food availability and food security as millet for instance provides more nutrients than alternatives such as rice, with 11.8% of protein compared to 7.9% as well as significantly more iron (43).

Gender & Marginalisation

Expanding processing of local cereals supports small producers, including women. It strengthens women’s empowerment in cereal processing through modern equipment access which will increase product quality, stabilize incomes and enhance their role as economic actors (44, 45).

As the sector is dominated by small size agricultural MSMEs, investments in processing of local cereals will facilitate their integration into markets, including through contractual arrangements between the producers and the processing units, secure their livelihoods and overall reduce rural poverty (29, 44, 41).

Increased processed local cereals also offer opportunities for poorest households to access local and nutritious food at acceptable price (30).

Primary SDGs addressed

Zero Hunger (SDG 2)
2 - Zero Hunger

2.1.1 Prevalence of undernourishment

Current Value

Undernourishment affected around 5% of the total population in 2022 (10).

Target Value

Sénégal aims to eliminate malnourishment by 2029 (5).

Decent Work and Economic Growth (SDG 8)
8 - Decent Work and Economic Growth

8.5.2 Unemployment rate, by sex, age and persons with disabilities

Current Value

In the second trimester of 2025, Senegal's unemployment rate decreased at 19%. Unemployment affects women more with 34% unemployed compared to 7.8% for men (49).

No Poverty (SDG 1)
1 - No Poverty

1.1.1 Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)

Current Value

In 2021, the poverty ratio with less than USD 3 per day was of 17.9%, with 17.6% for women and 18.2 for men (48).

Target Value

Senegal aims to reduce the national poverty rate from 37.5% in 2023 to 15% by 2050 (4).

Secondary SDGs addressed

Reduced Inequalities (SDG 10)
10 - Reduced Inequalities
Gender Equality (SDG 5)
5 - Gender Equality
Climate Action (SDG 13)
13 - Climate Action

Directly impacted stakeholders

People

Farmers, smallholder farmers, rural households, children, and the elderly benefit from improved food security and nutrition.

Gender inequality and/or marginalization

Women engaged in cereal processing and marketing gain better access to resources, skills, and income opportunities.

Planet

Adoption of millet and local cereals supports climate resilience by reducing pressure on degraded soils and enhancing carbon sequestration.

Corporates

Local SMEs in processing, storage, and distribution of cereals expand their markets and profitability.

Public sector

Ministry of Agriculture, Food Security and Livestock benefits from increased food security and attainment of their goals.

Indirectly impacted stakeholders

People

Broader rural and urban consumers benefit from diversified diets, lower dependency on imports, and stabilized food prices.

Gender inequality and/or marginalization

Rural youth and vulnerable groups find new opportunities through entrepreneurship and value chain integration.

Planet

Reduced post-harvest losses contribute to more sustainable resource use and lower environmental footprint.

Corporates

Financial institutions and private distributors gain new opportunities through contracts with smallholders and women’s cooperatives.

Public sector

National and local authorities (Agriculture, Health, Environment) and research centers benefit from improved policy alignment, innovation uptake, and progress toward SDGs.

Outcome Risks

Expansion of processing of local cereals may increase energy and water demand, creating environmental strain if not managed sustainably.

Rapid cereal commercialization risks excluding the smallest producers who lack capacity to meet quality and volume standards.

Gender inequality and/or marginalization risk: Unequal market access could reinforce existing gender gaps, leaving women processors with low margins despite higher workloads.

Impact Risks

Climate variability, drought, or soil degradation could reduce yields and limit expected gains in food security and economic empowerment of farmers.

Policy shifts on cereal imports or insufficient government support could affect the integration of local cereals into national food systems.

The low quality of the raw product might decrease the sustainability of the model thus the creation of impact.

Gender inequality and/or marginalization risk: Limited financing or equipment access may prevent women and youth from scaling their enterprises, weakening empowerment outcomes.

Impact Classification

B—Benefit Stakeholders

What

Expanding processing of local cereals strengthens food security, supports climate-resilient agriculture and increases farmers' incomes.

Who

Smallholder farmers, rural women processors, youth entrepreneurs, and local SMEs in the cereal value chain are the primary beneficiaries.

Risk

Climate shocks, d access barriers, and limited finance for women and youth could constrain production, market integration, and empowerment outcomes.

Contribution

Contributes to the Government's objective of enhancing exports of processed cereale-based products (12).

How Much

The Agropole Centre aims at increasing cereal processing from 6% to 30% (46).

Impact Thesis

Expansion of local cereals production and processing contributes to the climate resilience of the sector, reduce post-harvest loss, improve food security and nutrition and empowers women.

Enabling Environment

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Policy Environment

Stratégie Nationale de Souveraineté Alimentaire 2024-2028: promotes the valorization of agricultural products to ensure access to diversified food, including through enhanced agro-food industry and processing (12).

Nationally Determined Contribution 2021: highlights activities in the sector of cereal production (rice) in order to reduce GHG emissions from the sector and promotes the use of adapted crops to the climatic conditions as well as the processing of agricultural products as adaptation measures (4).

Politique et strategie d'industrialisation du Senegal 2021-2035: aims at improving the trade balance for agricultural products, through the enhancement of the industry competitivity and increased processing of raw agricultural produce (16).

Financial Environment

Financial incentives: In 2024, La Banque Agricole received part of the USD 167 million financing from the Government to support agricultural producers' access to finance and offers credits dedicated to the cereal sub-sector. FONSIS also invest directly in food processing companies (41, 56).

Financial incentives: The Fonds National de Developpement Agro-Sylvo-Pastoral (FNDASP) supports SMEs scale-up by providing funding, including to food processor. In 2024, it mobilized USD 250,000 for three food processing companies (41).

Fiscal incentives: The new Investment Code grants VAT suspension and refund (12–24 months), plus tariff exemptions for 3 years in Dakar/Thies and 5 years elsewhere for SME investments over USD 26,600. Strategic agricultural projects may receive additional government-negotiated benefits (50).

Other incentives: FNDASP also provide training and market access support to agricultural SMEs (49).

Regulatory Environment

Loi n° 2004-16 portant loi d’orientation agro-sylvo-pastorale: allows farmers to gather in professional organization, grants famers social protection and states that agricultural diversification should promote exports while ensuring import substitutions options for the local population (52).

Loi n°2001-282 portant Code de l’Environnement: imposes to all industries an ecologically sound waste management of waste and sets that the waste producers is responsible for their management. For their disposal or other forms of treatment requires an authorization (53).

Loi 66/48 du 27 mai 1966, relative au contrôle des produits alimentaires et la répression des fraudes and décret 2005-913 du 12 octobre 2005: the production and processing of products for human consumptions requires an authorization and is should be control by the administrative authority (54, 55).

Décret 2005-913 du 12 octobre 2005 rendant obligatoire la norme générale codex pour l’étiquetage des denrées alimentaires préemballées: renders mandatory the CODEX labelling on the product's name, list of ingredients, weight, company's name and addressee, date and conservation instructions (51).

Marketplace Participants

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Private Sector

La Vivrière/SECAS, Mamelles Jaboot, Agrosaafi, Utrapal, Free Work Services, les Moulins Sentenac, Mburu

Government

Ministry of Agriculture, Food Security and Livestock, Ministry of Industry and Commerce, National Agency for Agricultural and Rural Council, National Agency for Agricultural Integration and Development, Institute of Food Technology

Multilaterals

African Development Fund, African Development Bank, European Investment Bank,

Non-Profit

IPAR, JICA, ENABEL

Target Locations

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country static map

Senegal: Dakar

Senegal: Nord

semi-urban

Senegal: Centre

Kaolak and Kaffrine are among the biggest producers of millet in the country presenting opportunities for a steady supply in raw material and in added value activities linked to processing. The Agropole Centre focuses on cereal processing (46).
semi-urban

Senegal: Sud

Tambacounda, Sedhiou and Kolda are big millet producers, offering steady raw material supply and processing opportunities. The Bélé-Kidira SEZ and Agropole-Sud provide incentives for business setup, especially in corn processing. The Agropole Est prioritized the fonio value chain (46).

References

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