CAC News

ACCRA, Ghana — Ghana's cashew industry is facing renewed concerns over price instability, limited domestic processing, and continued dependence on raw nut exports, with new research highlighting the substantial gap between the country's production potential and its processing capacity.

An independent study found that Ghana processed only about 15,000 metric tons (MT) of raw cashew nuts (RCN) in 2025, representing less than 6% of estimated annual production of 262,000 MT. More than 94% of locally produced cashew is therefore exported or traded without undergoing domestic processing.

The findings have intensified calls for government action to transform the sector from a raw commodity export industry into a competitive agro-processing sector capable of creating jobs, generating tax revenues, stabilizing farmer incomes, and retaining greater value within Ghana.

Raw Cashew Exports Exceed Domestic Production

Ghana exported approximately 444,000 MT of RCN in 2025, mainly to Vietnam and India, the world's leading cashew-processing countries. The figure significantly exceeds Ghana's estimated domestic production of 262,000 MT.

According to Nitidae, the difference is largely explained by an estimated 165,000 MT of RCN informally imported from neighboring Côte d'Ivoire, Mali, and Burkina Faso before being exported through Ghana's Tema Port.

While Ghana has approximately 65,000 MT of installed cashew-processing capacity, only around 15,000 MT was utilized in 2025, leaving most of the country's processing infrastructure idle.

Capital Seen as Key Constraint

The research suggests that Ghana's processing challenge is less about a lack of raw materials or technical knowledge and more about access to affordable capital.

A modern 20,000-tonne processing plant is estimated to cost about US$9.2 million to establish in Ghana, compared with approximately US$5.3 million in Vietnam. Meanwhile, business borrowing costs are estimated at around 20% in Ghana, compared with roughly 9% in Vietnam.

The significant difference in investment and financing costs is seen as a major factor limiting private-sector investment in domestic processing.

The research argues that Ghana is not necessarily facing a choice between exporting raw nuts and processing them domestically. Instead, the country is significantly underutilizing processing capacity that it already possesses.

Regional Competitors Move Ahead

The gap becomes more apparent when Ghana's processing capacity is compared with neighboring Côte d'Ivoire.

Côte d'Ivoire operated 37 cashew-processing plants with a combined installed capacity of approximately 830,000 MT in 2025, demonstrating the scale of investment that can be achieved when policies and financing are aligned with industrial development.

Ghana is also among a small number of major cashew-producing countries without a dedicated policy framework specifically designed to promote domestic cashew processing. By contrast, Côte d'Ivoire, Benin, Nigeria, and Togo have introduced various measures, including processing levies, investment incentives, and industrial zones.

Calls for Policy Intervention

Industry stakeholders say Ghana's large raw-material base, existing processing infrastructure, and position as a regional trading hub provide a foundation for developing a stronger domestic processing industry.

However, they argue that unlocking this potential will require policies that improve access to affordable long-term financing, encourage investment in processing facilities, strengthen farmer-market linkages, and create incentives for value-added production.

The experience of other West African cashew-producing countries suggests that expanding domestic processing could allow Ghana to capture a larger share of the value generated by its cashew crop while creating employment and reducing its dependence on raw commodity exports.

The latest findings therefore present Ghana's cashew sector with both a challenge and an opportunity: the country has significant production and processing potential, but realizing that potential will depend on whether policymakers and investors can address the financing and policy constraints holding the industry back.