From Exporter to Processor: Côte d’Ivoire's Bold Shift in the Cashew Value Chain

Côte d’Ivoire’s cashew sector is undergoing a dramatic transformation, spearheaded by institutions like the World Bank, the International Finance Corporation (IFC), the Cotton and Cashew Council, and the Ministry of Agriculture and Rural Development. These bodies, in collaboration with national and international researchers and development actors, are turning what was once a raw export-driven commodity into a locally processed economic engine. Cashew nuts, the country’s second-most significant export after cocoa, have become critical to both smallholder livelihoods and the national economy, particularly in the less-developed northern regions. With production climbing from 380,000 tons in 2010 to 1.2 million tons in 2023, representing 40 percent of global supply, there is a clear imperative to retain more value within the country. The Cashew Value Chain Competitiveness Project (P158810), funded by a $200 million IBRD enclave facility, is central to this transformation, aiming to build a resilient, job-rich processing industry that turns Côte d’Ivoire from a raw exporter into a value-added producer.

From Farm to Factory: Building Local Capacity

A key outcome of the project has been the explosive growth in domestic processing capacity, rising from just over 68,000 tons in 2015 to 345,000 tons by 2024. This rapid development has created more than 18,321 jobs across the cashew value chain, with women occupying 66 percent of those positions, a significant leap toward gender equity in rural employment. Of the jobs created, over 17,200 are in processing plants, while others span services such as farm inputs, logistics, and marketing. To unlock this growth, the project focused on a holistic, value-chain approach, addressing every major bottleneck from farm production and cooperative organization to legal frameworks and export logistics. One of the flagship investments includes the creation of three agro-industrial zones in the northern towns of Bondoukou, Korhogo, and Seguela, designed as processing hubs capable of demonstrating best practices and scaling innovation.

Empowering Communities Through Infrastructure and Inclusion

Infrastructure development has played a pivotal role in linking producers to processors and markets. Approximately 1,800 kilometers of feeder roads have been rehabilitated, connecting remote cashew-growing areas to the new industrial hubs. The project has also funded the construction of satellite collection hubs and helped establish a specialized laboratory to improve cashew varieties. With the support of trained extension agents and local nurseries, smallholders have gained access to improved seedlings and modern agronomic practices. As a result, average yields have jumped from a modest 200–300 kilograms per hectare to nearly one ton per hectare by 2023–2024. These productivity gains have had tangible effects on rural livelihoods. For instance, in the Worodougou region, the SCAB COOP CA farmers' cooperative has created around 50 stable jobs, enrolled its employees in the social security system, and significantly increased member incomes, especially for its 400 smallholders.

Driving Private Investment and Sustainability

A crucial enabler of the project’s success has been the mobilization of private capital. The IFC has been instrumental in attracting investment through targeted incentives and regulatory streamlining. One example includes the scale-up of a digital platform originally developed by IFC to fast-track environmental permits for cashew processors, a move that has significantly reduced bureaucratic delays. In addition to supporting modern waste management systems, the project promotes the production of cashew nut shell liquid (CNSL), a by-product used in industrial applications ranging from lubricants to pharmaceuticals. This not only helps reduce environmental waste but also opens up new streams of income for processors. Further, cooperatives are being formally registered, trained in marketing and quality control, and encouraged to adopt environmentally sound practices. Eight satellite hubs allow even the most geographically isolated farmers to link up with processing centers, improving inclusiveness in the sector’s growth story.

From Nuts to Next-Generation Jobs

With the operationalization of the three agro-industrial zones expected to generate an additional 12,000 direct jobs by the end of 2025, the momentum is far from over. Looking to the future, Côte d’Ivoire is focusing on the untapped potential of cashew by-products, particularly the shells, which constitute about 70 percent of total cashew waste. The government is currently developing regulatory frameworks to manage these agro-industrial zones sustainably and is exploring a second phase of the project, valued at $150 million. This next phase would focus on waste valorization, market development, and quality certification systems to position Côte d’Ivoire as a global leader in cashew-based innovation. By emphasizing circular economy practices and high-value derivatives, the country seeks to maximize every part of the cashew nut and extend the socioeconomic benefits of the industry even further.