Togo has introduced an export tax on soybeans, cashew nuts and shea nuts to encourage local processing, create added value, and strengthen the country’s agricultural sector, the government announced.
The measure, included in the 2026 finance law, came into force on 1 January 2026, with tariffs set between US$0.002 and US$0.15 per kilogram, depending on the product and regulatory conditions.
Authorities said the tax aims to reduce the export of raw agricultural commodities and to stimulate domestic industrial activity. By making it more economically attractive for farmers and traders to supply local processing units, the government hopes to boost job creation, diversify state revenue, and capture more of the economic benefits from the country’s natural resources.
“The goal is to encourage economic actors to invest in processing facilities, rather than exporting raw materials,” a government statement said. “This strategy supports industrialization, strengthens local value chains, and promotes sustainable economic growth.”
Togo has taken a phased approach to developing its agro-industrial sector. A precedent was set in 2018 with the introduction of the Cashew Nut Levy, aimed at promoting the industrialization of the cashew sector by limiting the export of raw nuts. At the time, the government argued that local processors struggled to access sufficient raw materials, reducing the competitiveness of Togo’s value-added cashew products on international markets.
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For the shea sector, authorities previously introduced export restrictions in March 2025, temporarily suspending exports of shea nuts and kernels to ensure that local processors had access to raw materials. The 2026 export tax builds on these efforts, expanding the policy to soybeans, a strategic crop increasingly cultivated for both domestic consumption and export markets.
Experts say the measure is part of a broader push by the Togolese government to strengthen the industrial base of its agricultural sector while diversifying fiscal resources. Agricultural exports have long been a cornerstone of Togo’s economy, providing livelihoods for tens of thousands of people in rural areas. However, much of the country’s agricultural production has historically been exported in raw form, limiting domestic value addition and job creation.
By encouraging local processing, the government seeks to create a virtuous cycle: higher domestic processing activity increases demand for raw materials, which benefits farmers, while producing higher-value goods that generate additional revenues for exporters and the state. Processed products such as roasted cashews, shea butter, soy protein, and other value-added commodities can also open access to higher-margin export markets in Europe, North America, and Asia.
Analysts note that the initiative could also attract private investment into agro-processing facilities. By providing a predictable regulatory framework and supporting local sourcing, Togo positions itself as a potential hub for West African agro-industrial development. Investment in processing plants not only generates employment but can also improve infrastructure, strengthen supply chains, and support the adoption of sustainable production methods.
The government emphasized that the new export tax is calibrated to balance incentives with competitiveness. Lower tariffs on smaller-scale producers or cooperative groups may encourage formalization of the sector, while higher rates on bulk shipments aim to redirect raw materials to domestic processing units.
International development partners and trade organizations have welcomed Togo’s focus on value addition, highlighting that African countries exporting raw agricultural commodities often miss opportunities to capture a larger share of global market value. By fostering local processing, Togo could increase export revenues, reduce vulnerability to international commodity price fluctuations, and build a more resilient agricultural economy.
In addition to the economic rationale, the export tax aligns with the government’s long-term strategy to create sustainable employment, strengthen food security, and develop a competitive agro-industrial sector. Authorities say they will continue to monitor implementation, provide support to processors, and adjust tariffs and regulations as needed to ensure that local processing expands without creating bottlenecks for farmers or exporters.
Togo’s policy underscores a wider trend in West Africa, where governments are increasingly seeking to transform agricultural exports into higher-value products. If successfully implemented, the export tax on soybeans, cashews, and shea could serve as a model for other countries in the region seeking to industrialize their agricultural sectors and maximize the economic benefits of their natural resources.
