Benin

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Benin is a signatory member of the CICC Constitutive Convention on November 16, 2016 in Abidjan, through Mr. Lazare Maurice SEHOUETO, Minister of Industry, Trade and Handicrafts, in tandem with his colleague in charge of agriculture. Benin held the presidency of the Institution from September 2018 to December 2019 through successively Mr. Joseph Serge AHISSOU and Mrs. Shadiya Alimatou Assouman, Ministers of Industry and Trade of the country.

Currently, Mr. Gaston Dossouhoui, Minister of Agriculture, Livestock and Fisheries, and Ms. Shadiya Alimatou Assouman, Minister of Industry and Trade, are sitting on the Council of Ministers for Benin, in accordance with the Convention establishing the Institution.

Economic, social and environmental profile

Benin is a West African country with an area of ​​114,760 km² for a percentage of agricultural land of 35%. The population is estimated in 2021 at 12,451,031 inhabitants for a population growth of 2.7%. The overall and per capita GDP are respectively $17.79 billion and $1,428.4 in 2021, according to the World Bank. Benin experiences two rainy seasons in its southern part and one season in the northern part. The average rainfall varies between 900 mm per year in the far north to 1,100 mm in the south for an average temperature of 28.45 degrees Celsius.

Cashew sector in brief

Cashew is produced in nine out of twelve departments in Benin, namely Alibori, Atacora, Borgou, Donga, Couffo, Collines, Ouémé, Plateau and Zou. The sector was selected among the High Value Added (HVA) agricultural sectors to be promoted due to: (i) its strong capacity to contribute to the creation of jobs and income for populations, especially young people and women, (ii) its contribution to food and nutritional security, and (iii) its great opportunity for agricultural export alongside cotton. In 2023, the areas covered by cashew plantations in Benin are estimated at more than 376,141 hectares for a production of approximately 215,809 tonnes. The number of cashew producers is estimated at 250,000, of which 8.57% are women. Although the quality of nuts produced in the country is of very good quality (on average 48 KOR) and sought after by the actors, the average yields remain low with 400 kg per hectare. Fourteen (14) processing plants are installed for a cumulative capacity in 2023 of 130,800 tonnes including the new units currently being started up but approximately 17,700 tonnes of raw nuts are processed into almonds. During the same period, approximately 112,500 litres of cashew apple juice were produced in Benin. Cashew contributes 3% to the GNP and 7.4% to the GDPA, which places it in 2nd position after cotton which occupies around 25% of the GDPA. Benin has a volume of raw nuts exported which is equivalent to 159,898 tonnes whose price per kg varied between 375 and 635 CFA francs. The amount of the export tax on raw nuts is 50 FCFA/Kg at the port cordon. Similarly, to encourage free market competition, the fixing of the floor price for raw nuts is suspended in 2022. From April 2024, the export of raw nuts from Benin will be prohibited to give priority to the processing of all production on site.

Sector organization

In Benin, there is no regulatory or governance authority for the cashew sector. The latter is mainly supported, on the one hand, by the ministry in charge of agriculture for production aspects and, on the other hand, by the ministry in charge of trade and industry for processing and marketing issues. In support of these two technical ministries, the Investment and Export Promotion Agency (APIEx), attached to the Presidency of the Republic, is the operational arm of the Government in terms of investment development in Benin and promoting, among other products, cashew. APIEX relies on two tools: the investment code and the law on Special Economic Zones (SEZs) for the promotion of investments in Benin. Private players in the sector are grouped together in the Benin Cashew Industry Interprofession (IFA-Benin) made up of the National Federation of Cashew Producers of Benin (FENAPAB), the National Council of Cashew Processors (CNTC), the National Council of Cashew Exporters of Benin (CoNEC) and the National Federation of Buyers of Agricultural and Tropical Products (FENAPAT).

Cashew Promotion Incentives

Benin has established the Glo-Djigbé Industrial Zone (GDIZ) located 45 km from Cotonou and is dedicated to the local processing of agricultural products including cotton, cashew nuts, pineapples, shea nuts and soybeans, among others. GDIZ is expected to attract an investment of at least $1.4 billion in the first phase to create about 12,000 jobs. GDIZ is a public-private partnership between the Republic of Benin and ARISE IIP which has signed a partnership with the Beninese government to design, finance and operate the Glo-Djigbé Industrial Zone (GDIZ) and is responsible for the entire investment of $1.5 billion for the construction of the industrial zone. Benin grants cashew processing promoters facilities including equipment exemptions and exemption from taxes and duties on the first years of the life of the processing units. In order to promote the establishment of agri-food processing industries, a source of jobs and added value for the national economy, the Government has adopted Decree No. 2022-214 of March 30, 2022, on the conditions for the 2021-2022 cashew nut marketing campaign. This text specifies that the export of raw cashew nuts is prohibited, as of April 1, 2024. In order to best protect the interests of stakeholders between now and this date, a transitional framework for the export of cashew and soybeans is being put in place, with an organization that will guarantee its effectiveness. Before this deadline for the ban on exports of the products concerned, a transitional period is considered during which approval holders will have to meet the needs of local industries before exporting the rest of their stocks on the basis of an express authorization.

Cashew Promotion Projects and Programs

Projects & Programs

Execution period

Funding Sources

Areas of intervention

Implementing institution

Estimated Budget (USD)

ON OTHER SIDES

4 years

BAD

Production

Transformation

Commerce

ATDA-4/MAEP

24.000.000

PACOFIDE

2021-2026

World Bank

Production

Transformation

Commerce

Funding

Policy

MAEP

188.000.000

ProCASHEW

2019-2024

USDA

Production

Policy

CNFA

ND

BeninCajù

2016-2023

USDA

Production

Transformation

Commerce

Funding

Policy

TechnoServe

ND

TEST/

ND

ND

Commerce

ENABLE

ND

PNDFNDND

Production

Transformation

Commerce

ND

Institutions and persons representing the CICC

Benin is represented at the CICC by:

  • The Ministry of Agriculture and Livestock (MAEP). The Focal Point is Mr Sylvestre FANDOHAN, Technical Advisor to the Minister, fandohan@gmail.com .
  • The Ministry of Industry and Trade (MIC). The Focal Point is Mr Marius T. KONSAGO YARGO, Director of Domestic Trade Promotion mkonssago@gouv.bj .

Geographical location of cashew production