The fifth edition of the cashew nut exporters’ summit concluded on Friday, February 16th, in Abidjan, shedding light on Ivory Coast’s efforts to promote local processing of cashew nuts. Despite being the world’s second-largest exporter of cashew kernels after Vietnam, the country is striving to diversify its activities to better cope with international market fluctuations.
Historically, a significant portion of Ivory Coast’s cashew nut production has been exported, mainly to India and Vietnam. However, recognizing the benefits of local processing, Ivory Coast is now emphasizing this aspect of the industry. To this end, incentivizing measures have been introduced to encourage entrepreneurs to invest in on-site processing.
Adama Coulibaly, President of the Cashew Cotton Council, highlights the scale of subsidies provided to industry players, amounting to nearly 20 billion CFA francs in 2023. Additionally, cashew kernels destined for export enjoy tax exemptions, and incentives are also granted for the importation of equipment. Concurrently, agro-industrial zones have been established to facilitate the establishment of processing units.
This incentivizing policy is beginning to yield results, as evidenced by Mohamed Diaouné, an entrepreneur who recently invested in a processing plant in Ivory Coast. He notes that the increased availability of raw materials at competitive prices has bolstered the profitability of his operations, demonstrating the commercial potential of local processing.
Despite these advancements, it is worth noting that only 22% of the raw cashew nuts produced in the Ivory Coast are currently processed locally. However, with the continued promotional and supportive efforts of the Ivorian government, the cashew nut processing sector is poised for significant growth in the years ahead.