Gov’t urged to transform cashew sector for rapid economic growth

Raphael Godlove Ahenu, the National Coordinator of Cashew Watch Ghana, a civil society platform made up of NGOs, cashew farmers, media and local processors in the cashew industry has projected that the global cashew market value is estimated to reach a whopping USD 10.5 billion by 2031.

According to him, the current global cashew market size is about USD 7 billion but expressed the worry that cashew nut exports from Ghana in 2020 only yielded about US$340.7m despite the country’s estimated untapped potential of over US$ 660 million.

Speaking at Sampa in the Jaman North District of Bono Region during the launching of the Amplifying the Voices of Cashew Farmers Project, which is being implemented by Cashew Watch Ghana, Mr Ahenu pointed out that the cashew industry alone has a potential of transforming the Ghana’s economy in the medium to long term.

The Amplifying the Voices of Cashew Farmers (AVFC) Project is a 15-month initiative being implemented by Cashew Watch Ghana with funding support from STAR Ghana Foundation at the cost of Gh.c 348,561.

Ghana estimates annual production of between 110, 000 and 130, 000 tons of raw cashew nuts (RCNs) and about 85% of which are exported.

Challenges
Even though the cashew sector has grown into one that contributes significantly to Ghana’s economic growth, particularly in job creation and poverty reduction and is increasingly becoming one of the most important agricultural sectors in Ghana, there are a lot of challenges facing the sector.

One of the key challenges, according to analysts, is the lack of coordination among the cashew value chain actors.

Mr Ahenu called on the government to take advantage of the current windfall in the cashew industry to put in place pragmatic measures that will help revolutionize and transform the cashew industry into a vehicle for socio-economic advancement.

Mr Ahenu, who is also the founder/CEO of Global Media Foundation, urged the government to create an enabling policy environment that will drive forward the cashew industry in Ghana.

He that even though the Tree Crops Development Authority Act 2019 (ACT 1010) which was passed by Parliament in 2019 and subsequent inauguration of the Tree Crops Development Authority (TCDA) in September 2020 as the regulatory body for cashew and 5 other tree crops has not lived up to expectation.

Regulation
Sections 2 and 3 of the Tree Crops Development Authority Act, 2019 (Act 1010), the Act of Parliament that established TCDA, according to him is to regulate and develop the production, processing, trading, and marketing of cashew, mango, shea, coconut, rubber, and oil palm in Ghana but the Authority lacks necessary financial support to prosecute its agenda.

The cashew sector, he said, even though had grown into one that contributes significantly to Ghana’s economic growth, particularly in job creation and poverty reduction and is increasingly becoming one of the most important agricultural sectors in Ghana, the government had neglected the sector by virtually doing nothing in sector to accelerate its growth.

Mr Ahenu asked the government to increase technical and financial support provided to the Tree Crops Development Authority (TCDA) and Ministry of Food and Agriculture (MOFA) to ensure effective implementation of the 10-years National Cashew Development Plan as well as the effective operationalization of the Tree Crops Development Authority Act 2019 (Act 1010).

The Jaman North District Director of MOFA, Victor Yao- Dablu, who chaired the event, said the district indisputably leads in cashew production but unfortunately, the produce is carted and exported annually in their raw state by local and foreign companies.

He said TCDA is now the regulatory institution for cashew and five other tree crops. It is mandated to regulate and develop the production, trading, processing, and marketing of cashew, shea, coconut, mango, rubber, and oil palm, by conducting research into developing these sectors, providing technical support as well as coordinating and facilitating the capacity building of producers, processors, and traders of these crops.

He, however, expressed concern over the absence of an L.I which, according to the MOFA district director, is hampering the effective implementation of the Law and therefore called on parliament to pass the L.I to help in operationalization of the law.

The MOFA Director commended STAR Ghana Foundation for supporting the Amplifying the Voices of Cashew Farmers Project initiated by Cashew Watch Ghana saying “this project has come at the right time when cashew farmers are battling with low pricing for their produce."