Togo has introduced new regulations requiring a portion of raw cashew production to be channelled to domestic processors, as authorities seek to boost value addition and strengthen oversight of the sector.
The measures, adopted by the government in late December 2025 and made public this week, amend rules dating back to 2008. The joint ministerial order was signed by Economy Minister Badanam Patoki and Agriculture Minister Antoine Gbegbeni.
Under the new framework, all licensed buyers and producer cooperatives must supply at least one-third of the cashew nuts they collect or purchase to local processing units before selling the remainder to exporters.
Authorities say the requirement is designed to stimulate domestic processing capacity, reduce reliance on raw exports and create more value within the country.
Tightened controls and enforcement
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Compliance with the quota must be formally documented. Operators are required to present receipts or dispatch notes issued by local processors as proof that they have met the obligation.
Failure to comply carries significant penalties. Non-compliant buyers risk being barred from selling to exporters for the duration of the current marketing campaign, effectively limiting their ability to participate in international trade.
The regulation also reinforces existing controls over the sector. The purchase and export of cashew nuts remain subject to accreditation from the Cashew Sector Coordination Committee.
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Authorities warned that any shipments destined for export without proper documentation could be seized, with associated costs borne by the exporter.
Push for local value addition
The policy forms part of a broader strategy to encourage local transformation of agricultural commodities. By ensuring that a share of production is processed domestically, the government aims to increase the economic value captured within the country.
Cashew is a key cash crop in Togo and across West Africa, but much of the region’s output is traditionally exported in raw form, with processing carried out in Asia and other markets.
Officials argue that expanding local processing can generate employment, support industrialisation and improve export revenues over time.
Complementary fiscal measures
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The new rules build on earlier steps taken to reshape the sector. From January 1, 2026, Togo introduced an export tax on raw cashew nuts and certain other agricultural products, further incentivising local processing.
Together, the regulatory and fiscal measures signal a more interventionist approach by the government to restructure value chains and retain a larger share of profits domestically.
Challenges ahead
While the policy has been welcomed by some industry stakeholders, analysts caution that its success will depend on the capacity of local processors to absorb increased volumes.
Constraints such as limited processing infrastructure, access to finance and energy costs could affect implementation. There are also concerns about potential disruptions to trade flows if supply chains are not adequately aligned with the new requirements.
Nonetheless, authorities maintain that the reforms are necessary to transform the cashew sector and reduce dependence on raw commodity exports.
The move reflects a broader trend across Africa, where governments are increasingly prioritising local value addition as part of efforts to industrialise and strengthen economic resilience.
