Economy: Ghana’s cashew industry/ The missed opportunity in global markets

Ghana, the world’s third-largest exporter of unprocessed cashew nuts, generates around $300 million annually from the crop. Yet, the country sees little of the immense profits made further down the value chain. While farmers earn as little as $500 per tonne for raw cashews, processed nuts sell for up to $40,000 per tonne abroad.

Despite efforts to promote local processing, the sector faces significant challenges. High interest rates—reaching 30% on bank loans—make investment in roasting and packaging facilities nearly impossible.

This has forced local entrepreneurs like Mildred Akotia, CEO of Akwaaba Fine Foods, to rely on soft loans and grants to sustain their businesses.

Ghana processes less than 20% of its cashews, with the rest exported to Asia, where they are roasted and often re-imported at inflated prices.

Policy interventions, such as export bans and tariff increases, have failed to stimulate local processing.

Instead, experts argue that Ghana must focus on scaling up businesses, improving infrastructure, and building a strong domestic market.

Economist Bright Simons stresses the need for branding and marketing to increase local consumption, while Nobel laureate Daron Acemoglu highlights the importance of better access to international markets.

With growing global demand for cashews, Ghana has an opportunity to transform its industry. But without structural reforms and investment, the country risks remaining a supplier of raw materials rather than a key player in the lucrative processed nut market.

Source : bbc.com