Côte d’Ivoire: Illegal cashew smuggling endangers the sector
(Ecofin Agency) - In Cote d’Ivoire, cashew growers and exporters are concerned by the smuggling of the nuts to neighboring countries
Indeed, the actors fear that the phenomenon might be fueled by a growing demand for the crop this season. According to their estimates, about 100,000 metric tons of cashew could be smuggled to neighboring countries, mainly Ghana, before the end of the ongoing season.
Many of the sector’s actors attribute the thriving of the practice to high export taxes and transport costs. Interviewed byReuters, an exporter said Ghana imposes no export tax on cashew, unlike Ivory Coast which fixed a tax of CFA85 for a kilogram. He added that transit cost in Cote d’Ivoire are also higher than in Ghana.
To these add the fact that a kilogram of cashew is sold at a higher price in Ghana.Reutersindicates that in the Eastern part of Cote d’Ivoire, some farmers get between CFA900 and CFA1,000 for a kilogram of cashew sold to Ghanaian buyers while the same volume is sold at FCFA440 to Ivoirians.
“The government must do something. Rapidly.All quality nuts are sent to neighboring countries. This endangers the sector,”said another exporter who for his part highlighted that so far, 40,000 tons of cashew have been illegally exported outside the country.
More generally, the persisting smuggling impairs the nation's eport forecast for the year, knowingly 715,000 metric tons.
To exactly evaluate the losses that the phenomenon incurred Cote d’Ivoire, it should be noted that Ghana generated in 2016 $244.5 million from its cashew exports which stood at 163,000 tons that year. This despite the local output of the nation which was about 70,000 tons only last year, far behind Cote d’Ivoire’s 650,000 tons.