Burkina Faso introduces new financing plan to boost cashew processing
BURKINA FASO – Burkina Faso’s Dumu Ka Fa Fund (DKF), which finances the agropastoral sector, has launched a financing initiative for cashew processing facilities.
This effort is being carried out in partnership with the Burkina Faso Council for Agropastoral and Fisheries Sectors (CBF). The Ministry of Agriculture announced the new scheme in a statement posted on its Facebook page on February 7.
Under this plan, eligible cashew processors can receive campaign credits of up to 500 million CFA francs (US$786,000).
These loans, which have an interest rate of 4%, must be repaid within nine months. Authorities believe this will help increase the supply of raw materials to processors and strengthen the industry.
The country processed just 16,000 tons of cashew nuts in 2024, which is about 10% of the total production of 161,000 tons, according to data from independent advisory service N’kalô.
Despite having an installed processing capacity of 30,000 tons in 2021, many processing units have shut down due to a shortage of raw materials.
Industry experts say that exporters often offer higher prices for unprocessed cashews, making it difficult for local processors to secure enough supply. With the new financing initiative, authorities aim to keep more raw cashews within the country for processing.
Burkina Faso is part of West Africa’s growing cashew industry, which plays a major role in the global supply chain. The region produces nearly half of the world’s raw cashew nuts, with leading producers including Côte d’Ivoire, Nigeria, Benin, Guinea-Bissau, and Ghana.
Despite having significant processing capacity, a large share of West Africa’s cashew nuts is still exported unprocessed, mainly to India, Vietnam, and the United States.
In its February 6 newsletter, N’kalô reported that farm-gate prices for cashew nuts in Burkina Faso range between 300 and 700 CFA francs (US$0.47 and US$1.1) per kilogram, depending on the region.
With the 2025 cashew season still unfolding, the government has not yet outlined specific processing targets for the year. However, observers say that this financial backing could help increase local processing levels, making Burkina Faso less dependent on raw exports.
Research and development efforts in West Africa are also looking into ways to improve nut quality and enhance processing techniques.
If successful, these advancements could lead to more competitive local industries and stronger economic gains for cashew-producing countries.
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