• Exports of semi-processed cashew kernels to Vietnam are rising across the region

• Experts warn the trend undermines local value addition and industrial growth

• Limited access to working capital is pushing processors toward short-term trade

The rapid growth of exports of semi-processed cashew kernels—known as borma—from West Africa to Vietnam is threatening the long-term viability of the region’s cashew industry, according to sector expert Jim Fitzpatrick.

Borma kernels come from the early stages of processing, after steaming and cutting raw cashew nuts. The remaining steps—peeling, grading by size and color, and packaging—are carried out elsewhere, often outside the region.

Originally, producing borma was seen as a practical entry point for smaller processors, allowing them to focus on the least complex stage of the value chain. But the practice has expanded far beyond that role.

Using Côte d’Ivoire as an example, Fitzpatrick said the country processed about 550,000 tons of raw cashew nuts last year, yielding around 120,000 tons of kernels. Of that volume, only 34,000 tons were exported to the European Union and about 5,000 tons to the United States.

That leaves more than 100,000 tons unaccounted for in traditional markets. Some volumes went to the Middle East and North Africa, but most were exported to Vietnam as borma kernels. According to Fitzpatrick, this pattern is now widespread across West Africa and poses a growing challenge for the region’s processing industry.

Working capital at the core of the issue

Despite relatively low export volumes to Europe, Côte d’Ivoire remained Africa’s leading supplier to the EU. Out of the 44,000 tons of cashew kernels exported from Africa to the bloc in 2025, the country accounted for more than 75%, according to Fitzpatrick.

Outside Côte d’Ivoire, other African exporters saw shipments to Europe fall by 40%, with volumes shifting instead toward Vietnam. Borma kernels offer processors a quick and simple way to generate cash, he said, pointing to a deeper structural issue: limited access to working capital.

Asian processors typically buy raw cashew nuts for only two to three months of activity before processing and selling, then restocking throughout the year. This short operating cycle limits capital needs and reduces financial risk.

In contrast, processors in West Africa must secure most of their raw material during a short harvest window of three to four months to keep factories running year-round. That requires large upfront purchases, long storage periods, and higher financing costs, along with quality risks.

With bank credit still difficult to access, exporting borma kernels to Vietnam has become a way for local operators to quickly generate liquidity and reduce financial exposure.

The trade also leaves behind large volumes of by-products. Exporting 100,000 tons of borma kernels means that roughly 300,000 tons of cashew shells—rich in oil—remain in Africa. These residues must be managed or processed to avoid becoming an environmental risk.

Fitzpatrick warned that processors focused on borma lack the margins, capital, and incentives to invest in the recovery and use of these by-products, creating a long-term environmental concern.

In this context, he said the development of financing tools and bank guarantee mechanisms tailored to the cashew sector is essential if West Africa hopes to capture more value from its own production.

Without better access to working capital, processors in the region will remain stuck at the semi-processing stage, and the ambition of building a high-value, job-creating cashew industry will remain largely out of reach.

Espoir Olodo