The
Ghana Export Promotion Authority (GEPA) is advocating the imposition of taxes
on the export of raw cashew to encourage more local processing.
Ms.
Gifty Klenam, CEO of the Authority told the B&FT that: “We believe that
exporting the cashew raw doesn’t earn us more revenue. Besides, the foreign
exchange that is earned from the export is also not always returned to the
country to support the cedi.
As
part of our strategy to implement the National Export Strategy of the
government, we are considering having a conversation with the appropriate
Ministry to surcharge the export of raw cashew that is done in the country.”
Available
data from the GEPA shows that cashew has, over the years, become the leading
non-traditional export earner in the agriculture sub-sector, contributing
US$196.7 million in 2016.
Approximately
75,000 farmers in the country are engaged in cashew cultivation, with most
farmers located in the Brong Ahafo, Northern, Ashanti and Volta Regions.
The
price of raw cashew nuts has also soared. A kilogramme of raw cashew nut, which
sold on the market for GH¢1.5 in 2013 is now trading for GHC4, representing an
increase of 166 percent.
Currently,
about 90 per cent of cashew is exported raw, much to the chagrin of local
producers who struggle to get the raw materials for processing.
The
proposal, when fully considered and adopted, will help revamp the local cashew
industry and prevent the further collapse of processing plants in the country,
Ms. Klenam said.
Ms.
Klenam added that: “It was in this context that GEPA is having a conversation
that a certain percentage of the cashew grown here be allowed for export, while
a larger proportion is processed in the country. The domestic processing of the
nuts will create jobs for the youth.”
Mr.
William Agyepong Quaitoo, Deputy Minister of Food and Agriculture affirming the
proposal confirmed that: “I fully support imposing taxes on the
raw cashew export.”
Mr.
Quaitoo noted that the Ministry of Food and Agriculture (MOFA) is fully aware
of the situation and is therefore developing plantations of cashew. “When
we do that and production goes up, of course the Indians will come and buy and
some will still remain in Ghana and local processors can also buy.”
Ghana
is one of the few English-speaking countries that have signed onto the
consultative International Cashew Council.
The
Council is an international organisation, steered by the Ministries responsible
for cashew in the member states and meet annually as the decision-making
body for the development of the sector. The association aims to create a consultation
framework and synergies between member states for a sustainable cashew sector.
Mr.
Quaitoo explained that Ghana’s membership of the Council would help contribute
to the harmonisation of policies in the region and profit from the exchange in
the technical bodies for private sector promotion, cashew research along the
value chain and production.
He
added that over the last decade, cashew had emerged as an integral part of
Africa’s economy, and its production had grown impressively in the past years
from 1.2 million tons in 2014 to 1.8 million tons in 2016.
Dr.Adama
Coulibaly, Director in charge of Cashew Regulatory Body in Cote d’ Ivoire
commended the country for signing onto the convention and expressed the hope
that it would support member states to develop policies and strategies for the
development of Cashew sector.
Representatives
from the Ministry of Trade and Industry, Ministry of Local Government and Rural
Development, African Cashew Alliance, Competitive Cashew Initiative, Ghana
Export Promotion Authority, Mennonite Economic Development Association and
Cashew Industry Association of Ghana witnessed the ceremony.
Fast
Facts
12
processing factories
42,000mt
installed processing capacity, representing 60% of national production levels
of 70,000mt
2,000
jobs in factories, 75% women
Accumulated
wage: US$1.5million with a maximum wage of US$720 per year
Potential
of 10,000 direct quality jobs in processing
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