A street vendor in Accra gazes at me with curiosity as I examine the 30g bag of roasted cashew nuts she is selling beside the hot highway in Ghana's capital. The price, equivalent to about 75 cents (60p), surprises me as it reflects a significant markup compared to buying the same weight of raw cashews directly from a local farmer in Ghana. Engaging in a failed attempt to convey my astonishment due to the evident 4,000% price increase, I realize the language barrier hinders communication.
In Ghana, where approximately 300,000 individuals sustain their livelihood by cultivating cashew nuts, Nashiru Seydou shares the challenges faced by farmers like himself. Despite the rigorous work and financial uncertainties caused by fluctuating prices, he hopes for government support to boost the industry.
Bright Simons, an economic expert from Accra, highlights the substantial profit margin in the cashew trade, emphasizing the disparity between what farmers earn and the retail prices of cashews. While Ghana annually produces 180,000 tonnes of cashews, mostly for export in raw form, there is a missed opportunity for higher returns from processed, ready-to-eat cashews.
Mildred Akotia, the CEO of Akwaaba Fine Foods, explains the hurdles faced by local processors, refuting claims of overpricing and underscoring the financial constraints that hinder investment in modern processing equipment due to exorbitant credit costs locally.
Despite efforts to increase local processing, challenges persist, with a large portion of Ghana's cashews being exported for processing abroad and subsequently sold back to Ghana. This recurring cycle mirrors the situation with rice imports, underscoring the need for strategic interventions to boost local processing industries and reduce dependency on external markets.
While attempts have been made to incentivize local processing through export bans, the lack of access to affordable credit and inadequate infrastructure hamper the growth of Ghana's cashew industry. Experts advocate for building a robust local market and improving access to international markets to enhance the sector's competitiveness and sustainability.
The narrative shifts towards the importance of local businesses taking the initiative to enhance branding and marketing strategies for cashews, aiming to create a demand-driven market. The dialogue underscores the broader economic challenges faced in Ghana, urging a shift towards stimulating demand and nurturing entrepreneurial talent to drive sustainable economic growth and value addition within the country.