Cashew Processors of Mozambique Urge Streamlining Sector Plagued by Excessive Taxes and Red Tape

(3 Minutes Read)

One of the main points of criticism raised by small-scale processors during a provincial meeting of the sector was the requirement to register in each district where cashew nuts are purchased

Cashew nut production is one of the largest sources of income in the province of Inhambane in Mozambique, providing a livelihood for thousands of families and making an important contribution to the local economy. However, small-scale processors face several challenges, which go beyond the weather conditions. Excessive taxes and bureaucracy are undermining the sector and driving away new investors.

One of the main points of criticism raised by small-scale processors during a provincial meeting of the sector was the requirement to register in each district where cashew nuts are purchased. This procedure, accompanied by the payment of fees considered disproportionate, substantially increases operating costs.

According to the processors, registration should be a single procedure and carried out at the provincial level. This way, the buyer would only need to present themselves as registered when they arrive in the district. However, current legislation requires that each entry into a new district be preceded by a new registration and the corresponding payment fee, even if the process has already been carried out in another location.

This process not only makes the business environment more hostile for small processors but also creates a barrier for new operators, who often give up due to the bureaucracy. The situation is aggravated by adverse weather conditions. The rainy season presents additional challenges since humidity directly affects the quality of the nut.

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The representative of the National Almond Institute in Inhambane (IAM) acknowledged that the problems highlighted are real and explained that the requirement for multiple registrations is stipulated in current legislation. However, the cashew law regulations are currently under review, and there is an expectation that this issue will be resolved soon.