A deal to boost cashew production in the country from 57,000 metric tonnes to about 200,000 metric tonnes (mt) has been signed between the Ghana Export Promotion Authority (GEPA), the Cashew Industry Association of Ghana (CIAG), and BLC, a private consultant.
The deal was signed as part of the processes to develop a 10-year National Cashew Development Plan (2017-2027) which is to support research and development, improve inputs and technology from the farm to export; and increase processing capacity from 57,000 metric tonnes to 200,000 metric tonnes.
Gifty Klenam, Chief Executive Officer of GEPA explained during the signing ceremony in Accra, that GEPA is collaborating with industry players and major stakeholders especially, the Cashew Industry Association of Ghana (CIAG) to develop a comprehensive roadmap and a 10-year National Cashew Development Plan (NCDP).
“This is to regulate, formalise and provide strategic investment to revamp the industry, increase production and productivity along the cashew value chain; and ultimately regulate the entire cashew industry in Ghana,” she said.
The 10-year plan, would among other things, promote the production, consumption and marketing of cashew by-products, promote local consumption of roasted cashew products, support capacity building in the value chain to improve efficiency at all levels, promote competitiveness of the entire value chain, and create over 200,000 jobs annually.
Over the last few years, cashew has been the leading non-traditional export (NTE) earner. In 2016 for instance, it contributed US$197 million — the highest in the agriculture sub-sector.
According to Mrs. Klenam, the authority will collaborate with the Ministry of Food and Agriculture and Ministry of Trade and Industry to set up the National Cashew Development Board and Cashew Development Fund.
“We shall involve fund managers with professional expertise in credit evaluation, monitoring and recovery of credit extended to support research and development, as well as farmers, processors and all the actors in the entire cashew value chain,” she added.
GEPA said the plan will see the establishment of a Development Desk to oversee all cashew related activities including the provision of technical support, and liaise with all stakeholders in the sectors.
To sustain the programme beyond the 10 years, GEPA will also introduce a levy on the export of raw cashew nuts in line with international standards which is a common practice in all producing countries in West Africa.
The levy is projected to yield US$8 million annually, which will go into the setting up of a cashew development fund. This is expected to provide ready capital for farmers to improve production. It is also to discourage the export of raw cashew nuts and promote value addition.
The President of CIAG, Winfred Osei Owusu, was upbeat the MoU will bring to an end the intermittent support the cashew sector has received over the years.
“Over the years, we have a had a lot of discussions with the Ministry of Trade and Industry and it is quite refreshing that the new management of GEPA has accepted to work with us to roll out this ten-year development plan,” he said.
The MoU also sets out the broad areas of collaborations as well as the key targets to be achieved within the period. It also looks at the whole value chain from research to the consumer.
B&FT
