(Ecofin Agency) - In Côte d'Ivoire, the middle class's taste for wine shows no signs of slowing down. In this West African nation, one of the continent's fastest-growing economies, demand for the beverage keeps rising steadily.

Wine has become increasingly popular in Côte d'Ivoire, especially among the rising middle-class and upper-income groups who see it as a symbol of social refinement. Benefiting from steady economic growth since the end of the civil war in 2011 and a thriving hospitality and business tourism sector, demand for wine has soared, making Côte d'Ivoire the leading wine importer in sub-Saharan Africa.

According to the latest report from the U.S. Department of Agriculture (USDA), Côte d'Ivoire imported 72,000 tons of wine in 2023 for $64 million, marking an increase of 22% year-on-year. The country surpassed the import values of South Africa ($54.3 million), Namibia ($40 million), and Kenya ($23.9 million).

The document mentioned Spain as the biggest supplier, sending 67,934 tons of wine to Côte d'Ivoire in 2023, which made up 88% of the country’s total wine imports. This amounted to $41 million in sales, primarily for more affordable and entry-level wines. France followed as the second-largest supplier, focusing on higher-end varieties like Bordeaux, catering to a market segment that favors premium options.

Locally, the Société de Promotion de Supermarchés (Prosuma) leads in wine distribution. This retail giant, owned by the Kassam and Fakhry families, controls 60-70% of retail wine sales through its subsidiary L’Oenophile. In Côte d'Ivoire, about 80% of wine is sold in retail outlets, while the remaining 20% is sold in bars, hotels, and restaurants.

While Côte d'Ivoire’s wine market shows promise, with a growing middle class expected to drive future sales, challenges remain. The USDA warns that high import costs make wine less accessible for many consumers. In Côte d'Ivoire, wine is heavily taxed, with a 35% excise duty, 18% VAT, 20% import duty, and a 25% surtax on imports. The USDA reports that 60-75% of the retail price of imported wine comes from taxes and duties. Rising inflation has pressured consumer purchasing power, and wine imports from January to July 2023 were down $8 million from the same period in 2022, totaling $26.4 million.