The Association of Cashew Processors Ghana (ACPG) has issued a stark warning about the imminent collapse of the country’s cashew processing industry, citing raw material shortages, policy inaction, and lack of government support as key drivers of the crisis.
Peacefmonline.com is reliably informed that the sector’s struggles might even contribute to the potential failure of President John Mahama’s 24-Hour Economy initiative, as the policy’s goal of creating 1.7 million jobs over four years may be undermined if the cashew sector is neglected.
Sources say the unregulated export of raw cashew nuts (RCN) by some unscrupulous foreign merchants is depriving local processors of essential inputs, pushing many factories to shut down or scale back operations. These foreign buyers are said to be offering high prices, thus distorting the market and undermining Ghana’s industrialization efforts.
“Cashew processing is on the brink. Without intervention, we risk losing thousands of jobs, particularly among women and youth in rural areas,” some industry players told this portal.
President of the Association of Cashew Processors Ghana, António Manuel Caramelo Raposo, who confirmed these disturbing reports, called for urgent measures, including emergency raw material buffers, access to low-interest working capital, and targeted support such as tax reliefs and subsidies.
While appealing to the media and civil society to help spotlight the crisis and hold policymakers accountable, he revealed that the group will issue a statement in the coming days on the subject matter.
“Action is needed and fast,” the ACPG President concluded, reaffirming its readiness to collaborate with government and investors to revive the sector.
Peacefmonline.com has however, intercepted a copy of the statement which details the challenges of industry players in cashew processing and how dire the situation could impact the country’s economy.
Read a copy of the statement below
The Association of Cashew Processors Ghana (ACPG) is an organization focused on formalizing the cooperation of cashew processors in Ghana in a quest to revamp and transform the cashew processing industry.
Representing the value addition segment in the cashew value chain, it’s core aim is to provide cashew processors of nuts, shells and apples, an advocacy for their business interests with a united voice.
The group also aims to improve the socio-economic impact of cashew farming and processing by addressing challenges faced by local processors.
It is in this light that ACPG brings to the fore a disturbing report that demands urgent governmental attention.
The cashew processing industry is on the verge of collapse due to a combination of policy inaction, raw material shortages, and lack of government support.
At the heart of the crisis is the unregulated export of Raw Cashew Nuts (RCN), which continues to deprive local processors of access to the raw materials they need to operate. Foreign merchants are offering high prices to farmers, luring them away from the domestic supply chain. This unsustainable practice distorts the market, undermines the national value-addition agenda, and threatens the long-term viability of Ghana’s cashew sector.
Additionally, Secondary Processors within the cashew industry are also unable to operate to capacity due to the inactiviness of the primary processors as a result of the issues.
As a result, many ACPG member companies have either shut down or significantly downsized their operations. The situation is dire, rising operational costs, absence of subsidies, and lack of affordable credit have pushed processors to the brink. What began as an industrial challenge is now evolving into a national economic and employment crisis.
Thousands of jobs are at risk, especially among youth and women in rural communities, where cashew processing remains a major source of income and empowerment.
Weak Enforcement of Existing Policies
Despite existing policies that support local processing, enforcement has been weak, and the sector continues to suffer from a policy vacuum.
The ACPG is calling on the media and civil society to hold policymakers accountable and demand more than promises and policy documents.
Action is needed and fast.
Cashew, although one of Ghana’s top non-traditional export earners, receives minimal support compared to other agricultural sectors like cocoa. This imbalance in government attention and investment is hindering the growth of a sector that has the potential to make a significant contribution to Ghana’s industrialization and export diversification goals.
The closure of processing factories is not just an industry setback; it poses a serious threat to youth employment, rural livelihoods, and national development. The ACPG is therefore calling for urgent government intervention, including the provision of emergency raw material buffers, access to working capital at low interest rates, and targeted support such as tax reliefs and power subsidies to help factories stay afloat.
Potential Negative Impact On 24hr Economy
At the heart of the new policy, President John Mahama emphasized, is a bold ambition: to create 1.7 million quality jobs over the next four years, reduce the country’s dependence on imports, and strategically position Ghana as a competitive force in both regional and global export markets.
However, the ACPG has expressed concern that without urgent intervention to protect and revitalize the cashew industry, the broader goals of the 24-Hour Economy could be at risk. They argue that the decline of such a critical sector could create ripple effects that undermine the initiative’s potential for job creation and export-led growth.
ACPG also stresses the need for greater public awareness. Many Ghanaians remain unaware that a vital local industry is collapsing before their eyes.
The media must help bring this issue into the national spotlight, mobilize public support, and pressure government to take the necessary steps to rescue and revive the sector.
Finally, ACPG reiterates its position as the coordinated and legitimate voice of the cashew processing industry. The Association stands ready to partner with government, investors, and other stakeholders to shape meaningful reform and investment that can secure the future of local cashew processing in Ghana.
SIGNED
António Manuel Caramelo Raposo, President of Association of Cashew Processors Ghana (ACPG)
