Côte d’Ivoire boosts cashew processing with financing
Côte d’Ivoire’s cashew processors have welcomed a new financing agreement designed to strengthen local processing and secure raw nut supplies.
Côte d’Ivoire’s cashew processors have welcomed a new financing agreement designed to strengthen local processing and secure raw nut supplies. The agreement, signed on June 11 between the National Investment Bank, the Cotton and Cashew Council and local processors, provides a financing framework for the sector.
Under the scheme, the council will guarantee processors access to 20% of their raw cashew needs, while the bank will finance the remaining 80% and provide working capital for processing and exports. The Ivorian Cashew Processors’ Group, representing processors with a combined capacity of 100,000 tonnes, said the initiative would improve access to financing and support industrial growth.
Côte d’Ivoire produces about 1.5 million tonnes of raw cashews annually and has 37 processing plants with over 830,000 tonnes of installed capacity. The government is also considering extending the financing model to cocoa processors.
The Nigerian stake is clear. Nigeria also produces cashews but lags behind in processing. Côte d’Ivoire’s push for value addition is a model that Nigeria must follow. The financing model could be replicated in Nigeria’s agricultural sector.
From a Nigerian vantage point, the Ivorian initiative is a reminder that Nigeria is falling behind in agricultural processing. The government must invest in similar financing schemes to boost local processing.
This echoes the 2020s push for agricultural value addition in Africa, with several countries investing in processing. The mechanism then was different, but the result was the same: a race to capture more value from agricultural commodities.
The winners: Ivorian cashew processors, who gain access to financing; and the Ivorian economy, which benefits from value addition. The losers: Nigeria, which risks falling further behind; and the Nigerian government, which must act to catch up.
Bottom Line: Côte d’Ivoire is financing cashew processing. Nigeria is watching. The question is whether Nigeria will follow suit or continue to export raw nuts.