The world’s top cashew producer since 2015, Côte d’Ivoire is relying on public incentives to draw private investment as it pushes to expand domestic processing.

Public support for cashew processing in Côte d’Ivoire has played a key role in the industry’s expansion over the past seven years, Jim Fitzpatrick, a sector specialist, told Ecofin Agency.

Jim Fitzpatrick

Since the 2017/2018 season, the government has supported processors through a subsidy of 400 CFA francs ($0.71) per kilogram of exported kernels. Additional incentives include exemptions from customs duties and value-added tax on imported equipment and spare parts. Fitzpatrick said these measures were decisive in attracting both local and foreign investment and in rapidly expanding processing capacity. Processed volumes increased from 43,700 tonnes in 2017 to 344,000 tonnes in 2024.

“The subsidy program has achieved its objectives. Côte d’Ivoire now processes about two-thirds of all cashew nuts processed in Africa,” Fitzpatrick said. He added that the country dominates the sector with installed capacity exceeding 600,000 tonnes. Most processing plants are relatively new, having been built within the past five years, and are generally equipped with modern technologies.

Subsidy phase nearing a turning point?

Despite broad recognition of the program’s positive impact, questions are emerging about its future. Several industry sources say the Cotton and Cashew Council (CCA) is considering scaling back subsidies in the coming years, although no details have been disclosed on how such changes would be implemented.

In the absence of official clarification, Fitzpatrick said any reduction in subsidies would initially weigh more heavily on small and medium-sized processors than on larger, mostly foreign-owned companies with stronger balance sheets.

“Some of these firms may still be able to continue operating, but others would face serious difficulties if the subsidy were withdrawn,” he said, adding that an end to the program could also dampen future investment.

While some industry participants fear that removing subsidies would undermine the sector as a whole, Fitzpatrick offered a more measured assessment.

“The investment case for cashew processing in Côte d’Ivoire is now well established, and investment is likely to continue,” he said.

According to Fitzpatrick, the absence of subsidies could nevertheless encourage some companies to diversify their investments toward other producing countries, including Nigeria and Ghana, which also have abundant raw material supplies. Even so, he said Côte d’Ivoire retains significant advantages, notably high production volumes and a generally robust regulatory framework.

Espoir Olodo