CAC News
Africa is rapidly transforming its role in the global cashew industry, moving from a primary supplier of raw cashew nuts to an emerging hub for local processing, driven by strong government policies across key producing countries.
The continent currently accounts for more than 57% of global raw cashew supply, yet historically processes less than 15% domestically. This imbalance is now narrowing as governments implement measures to retain more value within their economies.
West African Countries Lead Policy Shift
Several major cashew-producing nations in West Africa have taken decisive steps to promote local processing:
- Benin became the first to act, banning raw cashew nut exports from April 1, 2024. The move has delivered significant results, with the country processing an estimated 50,000 tonnes of cashew kernels in 2025—double the previous year and a record high.
- Côte d’Ivoire, the world’s largest cashew producer, introduced a temporary export ban in 2024 to support its expanding domestic processing sector.
- Burkina Faso followed with an indefinite suspension of raw cashew exports from March 28, 2025, despite currently processing only about 10% of its 161,000-tonne annual output locally.
- Ghana has also announced plans to fully ban raw cashew exports, targeting 50–60% domestic processing capacity in the coming years.
These coordinated policy actions reflect a growing determination among African governments to move away from exporting raw commodities at low prices and instead capture higher value through industrial processing.
Investment Opportunities Emerge
Industry observers note that the shift toward local processing presents a significant opportunity for investors. With supportive government policies, expanding infrastructure, and increasing focus on value addition, the region is positioning itself as a competitive processing hub.
However, the transition is expected to reshape global supply chains, particularly for countries that rely heavily on African raw cashew imports.
Vietnam Import Trends Reflect Market Adjustment
Recent trade data underscores these changes. According to the March 2026 Vietnam Cashew Import Report, total import volume reached 51,631.39 metric tonnes, with a total value of $351.37 million and an average price of $6.805 per kilogram.
The report also highlights evolving market dynamics, including stronger buyer consolidation, more concentrated demand, and a more disciplined pricing environment across key grades and trade terms.
Global Industry Enters New Phase
As Africa intensifies efforts to process more cashew domestically, the global industry is entering a new phase marked by shifting supply patterns and increasing competition in value-added segments.
For stakeholders across the supply chain, from processors to traders, the ongoing transformation signals both challenges and opportunities in an increasingly strategic and policy-driven market.
