Côte d’Ivoire’s ambitious programme to support local cashew processing is facing imminent collapse, threatening more than 150,000 tonnes of annual industrial capacity and undermining years of investment in value addition. The initiative, launched approximately four years ago by the Cotton-Cashew Council with backing from Banque Nationale d’Investissement (BNI), was designed to help local companies process more cashew nuts domestically and reduce the country’s reliance on raw nut exports.
However, the programme has struggled due to repeated delays in financing, with loans often released months after the cashew season begins. These delays have weakened many processors, forcing several companies to shut down entirely. Today, only six processors remain active, including Ivory Cashew Nuts and SITA SA, a dramatic reduction from the dozens that initially participated in the programme.
For Côte d’Ivoire’s economy, the collapse of local processing capacity represents a significant missed opportunity. The country is the world’s leading producer of raw cashew nuts, but the vast majority of its harvest is exported unprocessed, capturing only a fraction of the value ultimately realised when cashews are processed into kernels for global markets. Each tonne processed domestically generates additional employment, tax revenue, and economic activity that would otherwise flow to processors in Vietnam, India, and other destinations.
The financing mechanism at the heart of the programme was designed to bridge the gap between processor cash needs and revenue from kernel sales. Processors require working capital to purchase raw nuts at the start of the season, before they have sold processed kernels. When loans are delayed, processors cannot buy nuts, creating a cascade of problems that ripple through the entire value chain.
A new three-year framework agreement meant to prevent future funding delays has been approved by government authorities but has not yet been signed by BNI, delaying its implementation. Industry players say resolving this issue is critical to protecting the investments that remain and rebuilding confidence in the sector.
The challenges facing Côte d’Ivoire’s cashew processing sector reflect broader difficulties common across African agricultural value chains. Access to affordable, timely financing remains a binding constraint for agro-industrial development. Seasonality creates cash flow mismatches that formal financial institutions struggle to accommodate. And policy frameworks, however well-intentioned, often falter in implementation.
For the farmers who grow cashew nuts, the processing crisis also carries implications. A vibrant domestic processing sector creates competition for raw nuts, potentially supporting higher prices for farmers. When processors close, farmers become more dependent on a smaller number of buyers, reducing their bargaining power and potentially suppressing farmgate prices.
The government’s commitment to value addition remains clear in principle. Successive administrations have emphasised the importance of processing more raw materials domestically, capturing greater value, and creating jobs. The cashew processing programme was a flagship initiative of this strategy. Its difficulties highlight the gap between policy intent and implementation reality.
The BNI’s role is particularly critical. As a state-owned development bank, BNI is positioned to provide the patient, affordable financing that commercial banks often cannot. Its delays in disbursing approved loans undermine not only the cashew programme but also confidence in government’s ability to deliver on its development promises.
For the six remaining processors, the situation remains precarious. They operate with reduced capacity, uncertain financing, and limited confidence in the policy environment. Without urgent resolution of the funding issue, more closures are likely, further diminishing Côte d’Ivoire’s processing capacity and reinforcing the country’s status as a raw material exporter.
The broader lesson for African agricultural policy is that value addition requires more than policy declarations. It demands reliable financing, functional institutions, and consistent implementation. Côte d’Ivoire’s cashew processing programme, launched with high hopes, now serves as a cautionary tale about the difficulty of translating ambition into reality.
