CAC News
March 2026 — East Africa’s cashew sector is undergoing a period of transformation marked by declining processing levels, emerging regional leaders, and renewed policy efforts aimed at revitalizing the industry, according to recent data covering developments between 2020 and 2026.
Over the past five years, cashew processing in the region experienced a sharp downturn. Processing volumes fell from 62,750 tons in 2020 to 35,500 tons in 2024, representing a 43 percent decline. The drop highlighted structural challenges across several producing countries, including limited raw nut supply, aging processing infrastructure, and inconsistent investment in value addition.
However, the sector showed early signs of recovery in 2025, when East Africa processed 38,500 tons of cashews, a 5 percent year-on-year increase. The rebound was largely driven by Tanzania, which processed 20,000 tons, accounting for 52 percent of the region’s total processing volume and reinforcing its position as the dominant player in East Africa’s cashew value chain.
Industry observers note that Tanzania’s leadership stems from both its strong raw nut production base and expanding processing capacity. The government has been actively promoting value addition as part of its broader agricultural industrialization strategy.
One of the most significant initiatives is the development of an agro-industrial park in Maranje, located in the Mtwara region, being constructed in partnership with Arise Integrated Industrial Platforms. The project aims to establish multiple cashew processing facilities with a combined capacity of up to 600,000 tons, a move expected to significantly strengthen Tanzania’s processing capabilities and attract further investment into the sector.
Meanwhile, other countries in the region are attempting to reposition their cashew industries through policy reforms and infrastructure development.
Kenya, for instance, announced a cashew sector recovery plan on January 8, 2026, designed to address the widening gap between its installed processing capacity of 45,000 tons and the country’s current low production levels. In 2024, Kenya harvested only 7,803 tons of raw cashew nuts, far below what is needed to support domestic processing plants.
The recovery plan focuses on boosting production, improving supply chains, and supporting agro-industrial development, including infrastructure projects linked to regional processing hubs.
Despite these efforts, challenges remain across the region. Mozambique, once a major cashew processor in Africa, has experienced a significant decline in processing activity in recent years, raising concerns about the sustainability of its domestic processing sector.
Experts say that the long-term success of East Africa’s cashew industry will depend on balancing raw nut production, processing investment, and supportive policies that encourage value addition within producing countries rather than exporting raw materials.
Overall, the outlook for the region’s cashew sector is cautiously optimistic. Improved raw nut availability, combined with strategic investments in processing infrastructure and industrial parks, could help East Africa strengthen its position in the global cashew market while generating more value locally.
