Cashew processors in Ivory Coast are facing significant financial setbacks as they fail to receive promised bank funding to purchase raw cashew nuts. The funding was intended to boost local processing capacity, but sources within the sector say the state-owned Banque Nationale d’Investissement (BNI) has not disbursed the necessary support.
As the world’s leading cashew producer, Ivory Coast has long sought to strengthen its local processing sector, which faces fierce competition from Asian multinationals. In response, both the government and the sector regulator, the CCA, have implemented measures such as subsidies, tax breaks, and exclusive purchasing rights for local processors during the early cashew season.
Three weeks ago, the CCA launched a scheme to assist local processors by providing 20% of their raw material requirements through BNI financing. However, despite receiving around 40,000 tonnes of raw cashews from suppliers, some processors report that they have yet to receive the necessary funds to settle payments.
“We are receiving raw nuts from suppliers, but there is no funding to pay for them,” said the director of a processing company based in Bouaké, the heart of Ivory Coast’s cashew industry. Another processor echoed the sentiment, criticizing the bank’s inaction.
Sources at the CCA confirmed the issue, revealing that discussions are ongoing with the BNI to resolve the matter. Despite efforts to improve the situation, the BNI has yet to comment publicly.
Financing delays have plagued the scheme in the past, with sources attributing the issue to unpaid debts from participating companies. The government’s goal is to process 50% of its cashew crop by 2030, but these ongoing funding challenges threaten to derail progress.
This year, cashew production is expected to reach 1.2 million tonnes.
