Cashew smuggling in West Africa undermines processing industry
WEST AFRICA – Cashew nut smuggling is threatening the long-term growth of West Africa’s processing industry, despite efforts by governments to boost local production.
Experts warn that illegal cross-border trade is growing, impacting revenue collection and undermining regional industrialization plans.
West Africa is a global leader in cashew production, with key producers including Ivory Coast, Nigeria, and Guinea-Bissau. However, illegal trading has been a persistent challenge, limiting the benefits for local economies.
Jim Fitzpatrick, an expert in the sector, stated in an interview, that smugglers have taken advantage of differences in national policies in 2024.
He highlighted the impact of Benin’s recent export restrictions. “The Beninese government does not collect export taxes, and producers, in general, receive lower prices. In 2024, India and Vietnam reported importing 224,000 tons of cashew nuts from Togo, about nine times the actual production of this country,” he explained.
Benin banned raw cashew exports last year to encourage local processing, particularly in the Glo-Djigbé Industrial Zone (GDIZ).
However, this move has led to more informal trade to Togo and Nigeria, depriving the government of tax revenue and limiting farmers’ market options.
Ghana has also become a central route for smuggled cashew nuts due to its lax export levies. This has led to significant tax losses for neighboring countries such as Burkina Faso and Côte d’Ivoire.
“In 2024, India and Vietnam imported 475,000 tons of raw nuts declared as coming from Ghana, while the actual Ghanaian production was 150,000 to 160,000 tons. A significant part of these nuts comes from Burkina Faso, Mali, and Côte d’Ivoire, transported to Ghanaian ports.”
“In Côte d’Ivoire, although export by road is prohibited, it is estimated that 50,000 to 150,000 tons were smuggled into Ghana in 2024 due to cross-border flows,” Fitzpatrick said.
These figures indicate a large-scale movement of cashew nuts outside official trade channels, making it harder for countries to regulate their industries effectively.
The issue highlights the urgent need for regional governments to align their policies on cashew exports. Countries with strict export rules find their measures undermined by neighboring nations with more relaxed regulations.
Paul Marie Kodjo, Deputy Administrator of the Glo-Djigbé Industrial Zone (GDIZ), emphasized this concern during the African Cashew Alliance (ACA) conference held in Benin last September. “I think that if a country takes strong measures and if its neighbors do not follow suit, it will not work,” he said.
Despite these challenges, West Africa remains a dominant force in cashew production. The region produced a record-breaking 3 million tonnes of cashew nuts in 2023, reflecting a 15% rise from the previous year. Ivory Coast led the way with 1.36 million tonnes.
Looking ahead, experts project the market size will increase from US$793.37 million in 2023 to US$950.04 million by 2028.
This growth is fueled by rising global demand and government policies aimed at increasing local processing and value addition.
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