- A recent study by the Agricultural Non State Actors Forum (Ansaf) has revealed that export of raw cashew nuts (RCN) instead of kernels led to heavy losses for Tanzania.
- The study has reported that in the 2020/21 season, Tanzania has lost Sh216 billion.
A recent study by the Agricultural Non State Actors Forum (Ansaf) has revealed that export of raw cashew nuts (RCN) instead of kernels led to heavy losses for Tanzania. The study has reported that in the 2020/21 season, Tanzania has lost Sh216 billion.
The Cashew processing would have also created 63,058 jobs for the country which faced a major challenge of unemployment. The study pointed out that in the 2020-21 season, RCN was traded at a maximum price of Sh2,707 per kilo, while kernels fetched a minimum price of Sh15,000 per kilogramme.
According to the findings of the Ansaf report dubbed: Economic opportunities in cashew processing and the costs of exporting RCN, only 10 percent of RCN is getting processed despite the 50 percent processing capacity of the country. Many of the units do not function due to obsolete technology.
Furthermore, the study revealed that RCN exports led to a revenue loss for the local government. Local Government Authorities (LGAs) collected cess which is about three percent of the value and export levy. Exporting nuts instead of RCN the report noted can increase direct sources of government revenue including corporate tax, Pay as You Earn (Paye) and cess from LGAs.
Some of the factors that inhibited growth of the cashew processing in the country included existing marketing modal promoting RCN trading through auctions than kernels, the absence of improved small scale processing technologies, limited incentives on importation of processing equipment and low political drive. The industry players also suffered from limited capital access, barriers from taxations and regulatory frameworks and inadequate market linkage with investors in major kernel importing countries according to the report.
The study has recommended setting up of agro-processing centres to accommodate a number of small agro-processing chain actors, and strengthening of LGAs and Small Industries Development Organization (SIDO).It has also suggested linkages between farmers, contract farming to link farmers and processors, partnerships and setting up of supply chains for local processors.
