Ghana’s cashew industry is facing growing concerns over its limited capacity to process raw nuts locally, with industry players warning that the country risks losing significant economic benefits as neighboring Côte d’Ivoire rapidly expands its cashew processing sector.
Ghana, which produces an estimated 262,000 metric tonnes of raw cashew nuts annually, processes less than six percent of its production locally, leaving the majority of the nuts exported in raw form to countries including Vietnam and India, where they are processed and sold at higher value.
The low level of domestic processing has become a major concern for farmers, processors and stakeholders who argue that Ghana is losing opportunities for job creation, industrial growth and increased export earnings.
The situation has also affected farmers, who have experienced a sharp decline in farm-gate prices in recent seasons due to market uncertainties, rising production costs and limited local demand.
Industry observers say increasing local processing capacity remains critical to creating a stable market for farmers and ensuring that more of the value generated from cashew remains within Ghana.
Côte d’Ivoire’s Processing Push
While Ghana continues to grapple with processing challenges, Côte d’Ivoire has positioned itself as a leading force in the global cashew industry through aggressive investment in local value addition.
The Ivorian cashew sector has grown significantly over the past two decades, with production rising from about 180,000 tonnes in 2005 to approximately 1.5 million tonnes in 2025.
Cashew has become one of Côte d’Ivoire’s major export crops and a key driver of economic activity, particularly in the northern, eastern, western and central parts of the country.
The sector currently supports about three million people and covers about 70 percent of the country’s territory.
Beyond production, Côte d’Ivoire has focused on building a strong processing industry, creating about 20,000 direct jobs, with women accounting for approximately 66 percent of employment opportunities in processing.
The country now has 93 active cashew processing factories, making it the third-largest cashew processor globally.
Government support behind Côte d’Ivoire’s Growth
The rapid expansion of Côte d’Ivoire’s processing industry has been linked to deliberate government interventions aimed at encouraging investors and strengthening local industries.
Since 2016, the government has introduced incentives including financial support for processors, tax exemptions on imported processing equipment, and special arrangements to guarantee access to raw materials for local factories.
The country has also established agro-industrial zones in Korhogo, Bondoukou and Séguéla to attract investments into cashew processing.
Additionally, institutions such as the Cashew Transformation Technologies Innovation Centre (CITA) have been created to develop technical skills and improve processing technologies.
Côte d’Ivoire Sets 2030 Processing Target
As part of its long-term strategy, Côte d’Ivoire aims to process between 50 and 60 percent of its raw cashew production locally by 2030.
The country plans to process about one million tonnes of raw cashew nuts domestically while promoting locally owned processing companies.
The strategy also includes improving storage facilities, strengthening traceability, promoting the “Origin Côte d’Ivoire” brand and developing markets for cashew by-products such as shells, cashew apple and cashew nutshell liquid.
Calls for Ghana to Accelerate Value Addition
Stakeholders in Ghana’s cashew sector believe the country can achieve similar transformation if it adopts stronger policies to support processors and farmers.
They are calling for increased investment in processing factories, improved access to finance, better storage facilities and incentives to encourage local and foreign investors.
They also want greater attention to the development of by-products and the promotion of Ghanaian cashew kernels on international markets.
According to industry experts, Ghana’s challenge is no longer only about increasing production but ensuring that the country captures more value from the commodity.
With global demand for cashew products continuing to rise, stakeholders believe strengthening local processing could transform the industry into a major source of jobs, income and industrial development.
As Côte d’Ivoire advances toward becoming a major cashew processing hub, Ghana faces the urgent task of closing its processing gap to ensure farmers and the economy benefit more from the country’s cashew resources.
SOURCE: AGRIC TODAY
