French agro-industrial group Somdia has announced plans to invest "several dozen million euros" in Chad to increase sugar production and develop new agricultural sectors. The company's CEO, Olivier Parent, made the announcement on the sidelines of the France-Chad Business Forum in Paris. Somdia operates in Chad through the Compagnie sucrière du Tchad (CST), which currently produces around 35,000 tonnes of sugar per year.
Somdia aims to increase its annual sugar production to 50,000 tonnes over the next five years by modernizing its agricultural, industrial, and energy installations. The company plans to expand its cultivated areas by 2,000 hectares and invest in a 7-megawatt solar field. According to Somdia, the CST, located in Banda in southern Chad, currently has a production capacity of around 35,000 tonnes of sugar per year.
Beyond sugar production, Somdia is considering developing maize, millet, and sorghum crops to create a new sector dedicated to animal feed, with potential future livestock activities. However, these investments are conditional on better regulation of the Chadian sugar market, which faces strong competition from imports. Olivier Parent emphasized the need for a stable and predictable environment to ensure the project's success.
The Chadian sugar market currently represents around 270,000 tonnes of sugar, while the CST produces only 35,000 tonnes. According to Olivier Parent, developing local production would also strengthen employment and skills in Chad. As CEO of Somdia since 2022, Parent is optimistic about the future of French-Chadian business relations.
The announcement was made during the France-Chad Business Forum in Paris, organized by MEDEF International and the Republic of Chad. The forum, attended by nearly 100 French companies and 200 Chadian companies, focused on private investment and partnerships between French and Chadian businesses. The event was part of Chad's National Development Plan "Tchad Connexion 2030".
Olivier Parent expressed his optimism about the new dynamic in economic relations between France and Chad, saying he senses a "new air" for business. Somdia is now ready to discuss the conditions necessary for the concretization of these investments and the development of the CST with Chadian authorities.
The planned investments are expected to have a positive impact on Chad's economy and employment. The development of the sugar industry and other agricultural sectors could also contribute to the country's economic diversification and growth.
Key points
- Somdia plans to invest tens of millions of euros in Chad's sugar industry to boost production.
- The company aims to increase sugar production to 50,000 tonnes per year over the next five years.
- The investments are conditional on better regulation of the Chadian sugar market.
