Ange Aboa

ABIDJAN, Reuters – Ivory Coast will commit over $20 million to help cashew processors in Asia who are facing stiff competition. This is to increase the amount of crop processed in the country according to a source within government.

Sources said that while the plan is currently under review, it is 90% complete and will be made public in the coming weeks.

Although it is not known how much the subsidies will go to the national processing firms, they will receive more and be able to secure financing from banks through the guarantee fund, which has a total value of $20 million.

Ivory Coast is the largest producer of cocoa in the world and has been ranked as the number one cashewnut grower over the past few years. It produces around 1,000,000 tonnes annually. The remaining 10% is processed in-house and exported raw.

The government expects that this aid plan, along with initiatives from the private sector, will boost processing to at least 50% by 2025 or 2026. That would make it possible for Ivory Coast and Vietnam to be the top processor in the region.

Ivorian processors said last year that they required more assistance to keep up with Asian businesses who are willing to pay more to manage the supply of raw nuts.

Ivory Coast produces 2.6% of all cashews globally, behind India (28.1%), Vietnam (52.8%), and Brazil (2.8%). According to Ivorian government statistics.

“We are waiting for the processing plan to be revealed, but we have started the campaign,” stated one Ivorian company head.

“We don’t know how much longer we can last,” he said to Reuters.

Fourteen of 20 Ivorian processors have stopped operating. All are at risk. A government study found that eight others have gone bankrupt, while eight more are temporarily inoperable due to equipment problems or outdated.

The U.S. funded project that was launched last week is aimed at investing $61 million in West Africa’s cashew processing industry, with a focus on the Ivory Coast.