News in brief:
– Afreximbank funds ₦33 billion to build a cashew processing plant, enhancing Nigeria’s value chain.
– The investment aims to boost Africa’s share in global trade through value addition and job creation.
In a significant boost to Nigeria’s agricultural sector, the African Export-Import Bank (Afreximbank) has pledged to provide $20.8 million (₦33 billion) for a cashew processing factory in Nigeria.
This move aims to enhance Nigeria’s cashew value chain by allowing local processing rather than exporting raw cashews, a common trend that limits income and job creation.
Currently, Africa represents only 3% of global trade, largely because raw exports like cocoa, coffee, and cashews dominate. This financing commitment by Afreximbank could help shift the industry toward more profitable, processed exports.
Africa faces an estimated annual $150 billion gap in trade finance. This gap limits the ability of countries to invest in facilities, infrastructure, and technology needed for agricultural processing. Afreximbank’s investment in Nigeria’s cashew industry could help bridge part of this gap and foster industrial growth.
The announcement came during the FARMATECH Expo, a three-day event organised by the Abuja Chamber of Commerce and Industry (ACCI) to encourage international partnerships, particularly with China. Chief Emeka Obegolu, President of ACCI, highlighted the importance of such events in advancing agricultural technology and fostering global cooperation.
