ACA Launches ‘Access to Finance’ Initiative in Lagos, Nigeria
The African Cashew Alliance kicked off its “Linking the Cashew Value Chain to Financial Institutions Initiative” on July 14th with the flagship “Access to Finance in the Cashew Value Chain” workshop in Lagos, Nigeria at the Ibis Lagos Ikeja Hotel. The workshop, attended by over 60 participants, assembled together cashew producers and processors, financial advisors, cashew market experts, banks and financial institutions, and leading government policy makers to address head on the critical issue of financial access by cashew stakeholders. The workshop – supported by the USAID West Africa Trade & Investment Hub (WAITH) and the USAID Nigerian Expanded Trade and Transport (NEXTT) project – was a great success and ACA looks forward to continuing the initiative in the future.
In his opening ceremony remarks, Dr. Oyewole Babafemi stressed the importance of greater access to finance to the strength and sustainability of a thriving African cashew value chain. He stated, “By ensuring that processers have access to the vital credit and working capital necessary to purchase raw cashew nuts (RCN) and the equipment necessary to process them, ACA is fostering the long-term viability of the African cashew processing industry. As the industry struggles and factories close, a cashew value chain yoked to sustaining financial institutions will enable us to move forward in solidarity”.
Similarly, Mr. M.O. Ibrahim, Director of Product Development at the Nigerian Export Promotion Council (NEPC) stressed the significance of investing in cashew processing for Nigerian job creation. He explained, “We need to improve and expand existing incentives for investing in cashews in Nigeria and remove the conditions inhibiting investment. When you process, you create jobs. … If Nigeria processed 50% of the RCN it exports, it would create 9,000 jobs with a chain of economic multiplier effects”.
Through interactive presentations, panel discussions, and business-to-business meetings, participants discussed ways in which they could facilitate linkages between the cashew sector, financial institutions, and financial advisors. In equal measure, the workshop aimed to augment the institutional knowledge of all actors present, with the understanding that capacity building in the cashew sector cannot attain its objectives without opportunities for financial access. During the panel discussion, Gwen Abiola-Oloke, the West Africa Investment Director at GroFin, spoke of mismatched expectations and the need for greater mutual understanding between the agricultural and banking sectors. Vivian Ani, Financial Advisor for WAITH, developed this idea further in presentation outlining strategies for MSMEs to become more bankable. B2B meeting further solidified concrete connections, providing cashew stakeholders with personalized advice on accessing financial institutions.
The workshop was held following the ACA Cashew Business Management & Market Information Systems workshop, also held in Lagos, on July 12-13th. This ongoing training for processors and market information specialists was hosted by ACA, with support from USAID WATIH and focused on increasing capacity in the West African cashew value chain. Capacity building, training, and technical assistance on global industry practices, business management, quality and food safety regulations, environmental protection, market information and trends has served further boost the competitiveness of African cashew sector actors.
ACA is proud to have hosted such successful events and looks forward to further collaboration with Nigerian cashew stakeholders and financial sector actors. We are just at the cusp of addressing these critical issues of capacity building and financial access in the African cashew value chain and, with increased information and stronger bonds, we will move forward together a stronger cashew sector.
