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Burkina Faso Bans Raw Cashew Nut Exports to Boost Local Processing Industry

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In a decisive move to strengthen its domestic cashew industry, Burkina Faso has announced an indefinite suspension of raw cashew nut exports. Effective March 28, 2025, the ban is part of a national strategy to increase local value addition by ensuring that raw cashew nuts are processed within the country rather than exported unprocessed. The government hopes this measure will revitalize the local processing sector, stimulate job creation, and foster greater economic independence.

Burkina Faso is a key player in West Africa’s cashew sector, producing around 161,000 tons of raw cashew nuts in 2024. However, only about 10% of that volume approximately 16,000 tons was processed domestically, despite the country’s installed processing capacity of 30,000 tons. The government aims to redirect a greater share of this production to local factories, reducing reliance on raw exports and maximizingthe economic benefits of the entire cashew value chain.

To support this policy, authorities have set a new minimum purchase price for raw cashew nuts at 385 CFA francs per kilogram (around $0.62), up from 310 CFA francs in the previous year. This increase is intended to encourage farmers to sell their harvest to local processors rather than relying on foreign buyers. In addition, the Dumu Ka Fa Fund (DKF) has launched a financing initiative offering campaign credits of up to 500 million CFA francs (approximately $786,000) to eligible processing companies. These loans come with a low 4% interest rate and a nine-month repayment term, making it easier for local businesses to scale operations and purchase more raw materials.

The government has also ceased issuing Special Export Authorizations (ASEs) for raw cashew exports. Companies holding valid ASEs have been granted a seven-day window to finalize any pending export arrangements. Authorities have warned that non-compliance with the new regulations may result in sanctions, signaling a serious commitment to the policy shift.

Burkina Faso joins a growing list of West African countries including Benin that are moving to protect and develop their agro-processing industries by restricting raw commodity exports. By keeping more of the cashew value chain within national borders, the country aims to build a more resilient, self-reliant economy and position itself as a regional leader in value-added agricultural exports. The success of the initiative will depend on how effectively local processors can absorb the increased supply and maintain competitive pricing, but early signs suggest strong governmental support and a clear roadmap for sectoral transformation.

 

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