Ghana's cashew sector is facing renewed concerns over price instability and the continued export of raw nuts, with a new study revealing that the country processes only a small share of the value generated from the crop.
Ghana Exports More Raw Cashews Than It Produces
A new independent study on Ghana's cashew industry has revealed that the country processed only about 15,000 metric tonnes of raw cashew nuts in 2025, representing less than six percent of its estimated annual production of 262,000 metric tonnes. The study found that Ghana exported approximately 444,000 tonnes of raw cashew nuts in 2025, mainly to Vietnam and India.
This has raised concerns about the vulnerability of farmers, particularly because many depend heavily on cashew sales as a major source of income. The study noted that sharp fluctuations in farm-gate prices create uncertainty for farmers and could discourage investment in the expansion and maintenance of cashew farms.
High Costs Discourage Investment
The study also identified high investment and operating costs as major obstacles to the growth of Ghana's cashew-processing industry. It estimated that establishing a modern 20,000-metric-tonne processing factory would cost approximately US$9.2 million in Ghana, compared with about US$5.3 million in Vietnam. Ghanaian processors also face high electricity costs, expensive imported machinery and production inputs, limited industrial support systems, and high borrowing costs.
According to the study, a modern cashew-processing factory with a capacity of 20,000 metric tonnes could employ at least 120 full-time workers and approximately 500 daily workers. With Ghana's current production levels, the report estimates that the country could potentially support more than 10 factories of a similar scale.
The Cost of Inaction
The study warns that Ghana's continued focus on raw exports is limiting job creation and the development of businesses within the national economy. "Most of the added value is generated outside of Ghana," the study observed. The President of the Association of Cashew Processors of Ghana, Mr Antonio Manuel Caramelo Raposo, said the country was losing significant economic opportunities by exporting raw cashew nuts.
"Every tonne we export raw is a factory job, a tax cedi and a unit of foreign exchange we are choosing to send to Vietnam and India instead of keeping in Ghana," he said. The study provides policymakers with a clear, data-driven roadmap for closing the gap between Ghana's industrialisation ambitions and the investment conditions needed to achieve them.
The study's findings have renewed calls for urgent government intervention to transform the cashew industry from a largely raw-export business into a competitive agro-processing sector capable of creating jobs, generating tax revenue, stabilising markets for farmers, and retaining more value within the country.
Ghana's cashew sector is at a critical juncture, and policymakers must take immediate action to address the challenges facing the industry. The country's continued focus on raw exports is not only limiting job creation and economic development but also threatening the livelihoods of thousands of farmers who depend on cashew sales as a major source of income.
Source: Joy Online
