Ghana stands as the world's third-largest exporter of raw, unprocessed cashew nuts, yet the country faces a formidable challenge in capitalizing on this lucrative industry. Annually, Ghana exports over 80% of its cashew yield in an unshelled form, generating roughly $300 million in export revenues. However, this approach means missing out on significantly higher returns that could be realized from roasted, ready-to-eat cashews. The potential for economic growth remains vast, as roasting and retailing these nuts could yield prices 4,000% higher than their raw counterparts.
Around 300,000 Ghanaians derive at least part of their livelihood from growing cashews, with the nation producing approximately 180,000 tonnes each year. Despite this substantial production, less than 20% of cashews are processed locally. This lack of domestic processing leads to the export of raw nuts to countries like India, Thailand, and Vietnam, which is a pressing concern within Ghana's cashew industry.
In 2016, the Ghanaian government attempted to address this issue by experimenting with an export ban on raw cashews to encourage local processing. Nevertheless, challenges persist, including the high cost of credit and complex bureaucratic hurdles. Additionally, red tape and cronyism force many enterprising Ghanaians to seek opportunities abroad.
"We are struggling. We can use the sunlight, the fertile land, to create more jobs," – Nashiru Seydou
Roasters and retailers purchase cashew nuts from farmers at $500 per tonne and sell them for prices ranging from $20,000 to $40,000 per tonne. This staggering profit margin highlights the economic potential that Ghana could tap into if more nuts were processed domestically.
"Roasters and retailers buy the nuts from farmers for $500 a tonne, and sell to customers [both at home and abroad] for amounts between $20,000 and $40,000 a tonne." – Bright Simons
Despite these figures, Ghana's economic development remains sluggish. The country's largest exports—gold and chocolate—experience limited value-addition before being shipped abroad. The focus has traditionally been on the supply side rather than fostering a consuming class of cashew enthusiasts within the nation.
"You need a lot of Ghanaians consuming the nuts, not just a small middle class" – Bright Simons
The barriers to entry for new roasters and retailers are substantial. High credit costs deter many from entering the market, while existing firms grapple with unskilled workforces, inadequate infrastructure, and a pervasive fear of corrupt officials and shifting regulations. These challenges make accessing foreign markets difficult—a necessity given the limited size of the domestic market.
"These firms are dealing with workforces that aren't properly skilled, they have infrastructures that aren't working, they are constantly in fear of corrupt officials, or rule changes, and also it's very difficult to reach foreign markets," he says. "They need the foreign market because the domestic market is small, and their own government has very little capacity [to boost it]." – Prof Daron Acemoglu
The situation is further complicated by a lack of government support in boosting local consumption or facilitating international market access. Consequently, Ghana's most ambitious business minds often venture overseas in search of more favorable conditions.
The plight of Ghana's cashew industry is not lost on those directly involved in the trade. A street vendor in Accra reflects on the potential that lies untapped within this sector.
"It's incredible," – (The Accra street vendor)