Ghana Pledges $60 Million Investment in Cashew Sector

The Ghanaian government has made a significant commitment to bolster the cashew sector with a $60 million investment, with a focus on processing, according to William Agyapong Quaittoo, Chief Executive of the Tree Crops Development Authority (TCDA).

Explaining the initiative, Quaittoo disclosed that the government had secured a $100 million loan from the World Bank, with $60 million earmarked for the cashew sector. The investment aims to enhance processing capabilities, with 70% of the funds allocated to the establishment of multiple factories across cashew-producing regions, spanning eight regions.

“Government has allowed Tree Crops Development Authority to take a World Bank loan of $100 million, out of which $ 60 million will be invested in cashew. Also, 70% of the $60 million will be invested in cashew processing,” Quaittoo stated.

Highlighting the current state of cashew processing in Ghana, Quaittoo emphasized that only 10% of produced cashew nuts undergo processing. The government’s goal is to increase this figure to 50% within six years, signaling a concerted effort to add value to the country’s cashew production.

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Speaking at the 6th Consultative International Cashew Council (CICC) conference held in Accra, Quaittoo rallied support for the initiative, urging Ghanaians to sustain momentum regardless of political changes. The conference convened ministers of Agriculture and Trade from 12 African countries forming the CICC, along with experts and researchers, to devise strategies for bolstering Africa’s dominance in the global cashew market.

Addressing delegates, Quaittoo underscored Ghana’s progress in cashew production, citing a significant increase in production since 2020, attributed to the distribution of approximately four million cashew crop trees to farmers in recent years. Despite this positive trajectory, Quaittoo raised concerns about the activities of foreign exporters purchasing wet cashew nuts from farmers illegally, undermining the quality and market value of Ghanaian cashew.

In response to these challenges, policymakers emphasized the importance of effective policies to support cashew farmers and stakeholders along the value chain. Yaw Frimpong Addo, Deputy Minister for Food and Agriculture (Crops), stressed Africa’s potential to sustainably develop the cashew sector through collaborative efforts and policy interventions.

Amidst discussions on challenges facing the sector, including geopolitical tensions and security threats, participants underscored the imperative of collective action and strategic partnerships to enhance production and processing capacities across cashew-producing nations.

As Africa’s largest producer of cashew, the continent stands poised to leverage its favorable climate and resources to drive growth in the sector. With concerted efforts and strategic investments, stakeholders aim to position Africa as a leading player in the global cashew market, ensuring sustainable development and economic prosperity for cashew-producing nations.