Cashew Kernel Processing Unit Co-investment in Northern Agro-industrial Zones (Bondoukou / Korhogo / Séguéla)

Côte d'Ivoire remains West Africa's standout investment destination, with GDP growth of 6% in 2024 and projected at 6.2% in 2025, driven by hydrocarbons, services, and private investment. FDI hit an all-time high of $3.8 billion in 2024, and CEPICI reported a 9.6% increase in approved private investment to $1.45 billion in 2025, led by agriculture, agro-processing, ICT, and SME manufacturing. The government's 2025–2030 National Development Plan (PND) explicitly targets 72% of investment from the private sector and has introduced streamlined industrial zone regulations (February 2025) and an amended Investment Code with enhanced tax credits. Three structural themes dominate: (1) agro-industrial value chain upgrading — cocoa processing reached 44% of output locally in 2024 and the government targets 50% by 2026, while cashew processing surged 67% YoY to 600,000 tons in 2025, accounting for 82% of West African production; (2) renewable energy expansion — Ivory Coast aims for 42% renewable electricity by 2030, with multiple solar PPAs signed and live tenders for health-centre solar electrification; and (3) offshore energy services — Eni's Baleine FPSO reached first oil in December 2024 and the government is accelerating local supplier development. Currency risk is structurally low thanks to the CFA franc's hard peg of 655 XOF to the EUR, and Fitch recently upgraded the sovereign to BB (stable).

Côte d'Ivoire processed 600,000 tons of cashew in 2025 — a 67% YoY surge — accounting for ~82% of all West African cashew kernel output, yet the government's stated target is to process 50%+ of 1.5 million-ton harvests locally by 2030, implying significant remaining capacity gaps. The World Bank's $150 million Phase 2 cashew project (under consideration as of late 2025) will inject new infrastructure into the three northern agro-industrial zones, creating co-investment opportunities for equipment, cold-chain logistics, and shell-waste valorisation alongside anchor processors.

Market drivers:

- Government tax incentives under Ordinance 2019-587 for cashew processors, including VAT suspension and customs duty exonerations

- US tariff increases on Asian processed goods in 2025 reduced competition for raw material domestically, indirectly boosting margins for local processors

- World Bank / IFC Cashew Value Chain Competitiveness Project driving cooperative financing, quality standards, and market linkages to EU buyers

Risks:

- Working-capital intensity: cashew processing requires pre-season cash to buy raw nuts; access to BCEAO-linked bank lending can be constrained for new entrants

- Harvest volatility: climate shocks and disease can depress raw nut supply, compressing factory utilisation and margins