A year after Valency International, a Singapore-based agricultural processing and trading company, set up shop to do cashew processing in Côte d’Ivoire, British International Investment made a $15 million equity investment. Valency, now in its third year, has secured a fresh $15 million from the UK development finance institution to expand into cashew waste processing and biofuel production.
The deal will create local jobs and retain more of the value of the country’s cashew production. Côte d’Ivoire rivals Vietnam and India as a leading cashew producer, but just 10% to 20% of the processing is done within the country.
Cashing in on cashews
Valency launched in 2022 with $20 million in debt from Norfund and Finnfund to set up a processing facility. Last year, it secured $50 million in trade financing from the International Finance Corp. and Absa to procure cashews, as well as sesame seeds, shea nuts, ginger and soy beans from 150,000 farmers in Côte d’Ivoire and three other African countries.
Côte d’Ivoire’s government last year tightened regulations to strengthen local processing and local companies. Cashew production in the country has also been supported by the $27 million Prosper Cashew program, funded by the US Department of Agriculture in President Trump’s first term.
The program, implemented by TechnoServe with support from ISF Advisors and a guarantee from the African Guarantee Fund, is set to expire this September.
