How African States Can Take Advantage of the Growing Demand of Cashews

The global cashew industry has grown rapidly over the last decade, driven by increasing consumption of cashew nuts around the world. And the market for raw cashews is forecast to continue growing at an annual rate of 4.27% between 2020 and 2025. It is expected to reach almost US$7 billion by 2025. The African continent now accounts for over 50% of raw cashew nut. About 90% of all Africa’s production is exported, mainly to Vietnam and India. The low rates of cashew nut processing in Africa’s cashew producing nations is driven by a number of factors. These include limited infrastructure and local processors. But a number of African governments have recently put in place policies and measures to address these shortfalls. For example, in Cote d’Ivoire, the largest exporter of raw cashew nuts in the world, an export tax of FCFA 30 per kg of raw cashew nuts has recently been introduced. Revenue from this tax is then used to subsidise and support local processors. Similarly, Mozambique and Tanzania have adopted a range of measures to protect and incentivise local cashew processors.

SOURCE: THE CONVERSATION