Core Viewpoint - The Brazilian cocoa processing industry is facing significant export losses due to the U.S. government's new tariff policy, which could result in a loss of at least 180 million Brazilian Reais (approximately 36 million USD) by 2025 [1][2]. Group 1: Export Impact - The U.S. is the second-largest export destination for Brazilian cocoa products, accounting for 18% of the industry's total exports [1]. - In 2024, Brazil's cocoa product exports to the U.S. are projected to reach 72.7 million USD (approximately 363 million Reais), with the first half of 2025 already showing exports of 64.8 million USD (approximately 325 million Reais), representing over a quarter of total exports during that period [1]. Group 2: Tariff Details - Starting from August 6, the U.S. will impose import tariffs of up to 50% on Brazilian cocoa products, following a previous 10% tariff increase in April, which has raised concerns within the Brazilian industry [1]. - The additional 40% tariff is expected to directly impact the stability of the Brazilian cocoa processing industry [1]. Group 3: Industry Challenges - The Brazilian cocoa processing industry supports approximately 200,000 direct or indirect jobs, primarily located in Bahia, Pará, and São Paulo [2]. - The industry is already facing challenges such as reduced production and rising raw material prices, and the new tariffs may exacerbate these issues, potentially leading to significant idle capacity and job losses [2]. - The average idle rate in the Brazilian cocoa processing industry could rise to 23.83%, and considering combined data for 2024, it may reach as high as 37% [1].

Core Insights - The Kribi Industrial Zone has attracted investments totaling approximately 400 billion CFA francs (around 6.66 million USD) since 2018, with 53 companies approved to establish operations there [1][2] Investment Overview - The industrial sectors involved in the investments include cocoa, cement, flour processing, and logistics [1] - The first contract was signed in 2018 with Atlantic Cocoa, which invested over 30 billion CFA francs to build a cocoa processing plant with an annual capacity of 48,000 tons, expandable to 64,000 tons [1] - Two additional factories have commenced operations in the past two years: a cement plant by Cimpor, with an investment of 37 billion CFA francs and an annual production capacity of 1 million tons, and a flour mill by Cadyst Group, with an investment of 13.5 billion CFA francs and an annual production capacity of 100,000 tons [1] Ongoing Projects - Currently, an asphalt production plant and a small refinery with a daily output of 10,000 barrels are under construction, with a total investment of 161 billion CFA francs and an annual asphalt production capacity of 250,000 tons [2] Strategic Importance - Kribi Port is positioned to become a major mineral export hub for Cameroon due to its strategic location and infrastructure [2] - However, the development faces challenges, particularly in electricity supply, with the local thermal power plant generating 176 MW but only providing 13 MW to Kribi, affecting stable energy supply for industrial production [2]