Funding Crunch Stalls Ivory Coast's Cashew Processing Ambitions

Cashew processors in Ivory Coast face challenges as they are unable to access state-owned bank funding to purchase raw nuts. Despite efforts by the government and CCA to enhance local processing, financial barriers hinder progress. With processing capacities underutilized, the situation threatens the competitiveness of local processors.

Cashew processors in Ivory Coast are confronting significant hurdles as they remain unable to secure funding from a state-owned bank to procure raw cashew nuts. This financial shortfall comes despite aggressive measures by the government and sector regulator, the CCA, to bolster local processing and make it more competitive in the global market.

The scheme, intended to kickstart the cashew season, involves the CCA providing local processors with up to 20% of their raw material needs, backed by financing from the state-owned Banque Nationale d'Investissement (BNI). Yet, critical funding from BNI has not materialized, forcing raw nut stocks to accumulate and leaving suppliers on the brink of halting deliveries.

With local processing plants operating below capacity, sources indicate that previous financing issues have led to a reduced participation roster this year. Moreover, the lack of bank support has stymied efforts to process a more significant portion of the country's substantial cashew crop, projected to reach 1.2 million tonnes.