How Sweet It Is!
GATT-Flyer No.4

Publisher:  GATT-Fly, Toronto, Canada
Year Published:  1977
Price:  $0.10   Resource Type:  Article
Cx Number:  CX234

A critical analysis of the financing of a sugar complex for the Government of the Ivory Coast by Canada's Export Development Corporation.

Abstract: 
This brochure critically analyzes the financing of a $172 million sugar complex to be built for the Government of the Ivory Coast by Canada's Export Development Corporation (EDC), a Crown Corporation responsible to the Ministry of Industry, Trade and Commerce. The project, to be completed in 3 years, will produce 60,000 tons a raw sugar per year for export. The critique points out that the principal beneficiary of this largesse is Redpath Sugars Ltd., a Canadian subsidiary of the British multi-national firm of Tate & Lyle Ltd. which has altogether 150 subsidiaries in 30 countries.

As a result of a cold-blooded decision by President Houphouet-boigny to grant them a free hand, foreign investors in the Ivory Coast benefit from one of the least restrictive investment codes in the world. The 2500-3000 jobs which the project will produce locally are cited as a poor excuse for a $172. million investment which breaks down to a $60,000 per job created. Moreover, at today's low prices for raw sugar, it is unlikely that the Ivory Coast Government will be able to even pay the interest on the $172 million debt, let alone make any profit.

Since the expertise within the Tate and Lyle group for this sort of project is in Britain, the question is also raised as to how Canadians stand to benefit from the $71 million bank loans apart from a few jobs created for Redpath employees in the production of goods used in the project.