Sierra Leone’s cashew nut industry is emerging as a promising frontier for agribusiness investment. Traditionally known for its mineral resources, the country is now turning attention to cashew farming, which thrives in its tropical climate and offers a new avenue for rural development and export diversification. In recent years, the government and development partners have promoted cashew cultivation through high-quality seedlings, farmer training, and establishing the country’s first modern cashew processing facilities.

This guide provides a comprehensive overview of Sierra Leone’s cashew sector for international investors and local entrepreneurs. It explores the industry’s current state, farming value chain, profitability prospects, investment challenges, and government policies supporting foreign investors. 

Upon reading this article, the readers will be able to,

Understand the growing investment potential in Sierra Leone’s cashew industry and why it is emerging as a key agribusiness opportunity.

Discover opportunities across the cashew value chain, from cultivation and processing to exports and market expansion.

Learn about the various government incentives that make Sierra Leone attractive to investors, including tax breaks, land leasing options, and export facilitation.

Gain insights into the industry’s challenges, such as low yields, financing gaps, infrastructure limitations, and strategies to overcome them.

Explore the global demand for cashews and how Sierra Leone can position itself as a supplier in premium markets.

Recognize the socio-economic and environmental benefits of cashew farming, including job creation, women’s empowerment, and sustainability efforts.

Sierra Leone’s cashew sector is still in its early stages but growing steadily. A 2021 survey identified about 8,500 cashew farmers managing approximately 22,600 hectares of plantations, primarily in northern districts such as Kambia, Port Loko, Karene, Tonkolili, and Bombali. Many trees were planted in the last 3–5 years, indicating that production is set to increase as they mature.

Cashew production in Sierra Leone remains modest, with a total yield of around 772 tonnes of raw cashew nuts in 2021—significantly lower than neighboring countries like Guinea-Bissau and Côte d’Ivoire. Yields per tree are currently low, mainly due to poor farm management rather than pests, disease, or soil conditions. However, Sierra Leonean cashews are known for their high quality, with large nut sizes and good kernel output. If productivity improves, the country could command premium prices in global markets.

The cashew value chain is still developing. Over half of local farmers sell their harvest to traders, and two leading agribusiness companies—Melo Africa and Balmed Holdings—lead aggregation and exports. In a breakthrough, Balmed recently facilitated Sierra Leone’s first significant post-pandemic export sale, shipping 55 metric tonnes of raw cashew nuts to India. This deal benefited over 200 smallholder farmers, 70% women, highlighting the sector’s potential for rural livelihoods.

Despite these successes, challenges remain. Weak supply chain organization and low yields hinder full-scale commercialization. However, as production increases and the value chain strengthens, Sierra Leone’s cashew industry can potentially become a significant player in global markets.

Sierra Leone’s tropical climate supports cashew farming, with warm temperatures and a rainy season from April to October. The crop thrives in well-managed areas despite high rainfall. Around 5.4 million hectares of fertile land remain uncultivated. Northern districts like Kambia, Port Loko, and Karene are key cashew-growing regions.

Farmers in the East and South are also adopting cashew farming. Many integrate cashews with other crops, improving sustainability. Agroforestry methods help maintain soil fertility and increase resilience against climate change. Expanding cashew plantations is a key strategy for utilizing idle land and rising rural incomes nationwide.

Smallholder farmers dominate cashew cultivation in Sierra Leone, relying on traditional methods. Many plantations are young, established in the past decade through government and donor support. While production is expected to rise, current yields remain low—about 250 kg per hectare—due to poor farm management, low input use, and lack of pruning.

Initiatives to improve productivity include distributing high-yield seedlings and providing agronomic training. Nearly 800 farmers have been trained in Good Agricultural Practices (GAP). Scion gardens and nurseries have been set up to improve planting material. With better techniques, cashew yields could significantly increase, strengthening the country’s position in the global market.

New approaches, such as “block farming” and “semi-block farming,” are helping expand cashew production. Under these models, companies supply inputs and technical support while local landowners and youth maintain the farms. This system provides jobs, ensures shared profits, and overcomes land access challenges and agricultural sector workforce shortages.

A value chain study found that a 2.5-hectare cashew farm, the median farm size, can generate around $800 annually. This makes cashew farming a viable livelihood option. As plantations mature and better techniques are adopted, profits will rise. A strong cashew farming base will also support future processing and export growth.

Sierra Leone lacked industrial cashew processing facilities for years, mainly exporting raw nuts. In 2024 the country opened its first modern processing factory in Newton, near Freetown. Funded by the EU, this facility processes about 800 kg of raw nuts daily, or 200 metric tonnes annually, creating employment opportunities for over 300 people.

The factory works with local cooperatives, ensuring farmers have a stable buyer. This processing facility marks an important step in Sierra Leone’s cashew industry by keeping more value within the country. While still small compared to global standards, it sets the foundation for further investments in local cashew processing and value addition.

Processing cashew nuts in Sierra Leone significantly increases revenue. Raw cashews sell for much less than processed kernels, which attract higher prices in Europe, North America, and Asia. The Newton factory enhances food safety standards, helping the country access premium markets. It also reduces dependence on exporting raw nuts to India and Vietnam.

Mechanized processing reduces health hazards associated with manual shelling. Traditionally, workers—mostly women—exposed themselves to caustic cashew nut shell liquid. The new facility provides a safer work environment. Local processing boosts incomes and enhances social and economic development by empowering women with better-paying jobs.

Expanding cashew processing offers strong investment potential. Large-scale factories require at least 10,000 tonnes of raw nuts annually to be commercially viable. While Sierra Leone’s production is lower, it is projected to reach this threshold in the coming years. Increasing cultivation and improving supply chains are essential for sustaining processing growth.

The government encourages agro-processing investments by offering tax breaks in Export Processing Zones (EPZs). Investors can benefit from early entry into this developing industry. As production increases and infrastructure improves, Sierra Leone’s cashew processing sector is expected to grow, creating profitable opportunities for local and international investors.

Sierra Leone’s cashew exports are still in their early stages but are expanding. Until recently, exports were limited, with the highest recorded annual export being just 80 tonnes. In 2021, production reached 772 tonnes, though not all were exported. However, direct sales abroad have begun, signaling international interest.

Companies like Balmed Holdings and Melo Africa are leading these efforts. In 2021, Balmed exported 55 tonnes to India, while Melo Africa worked on supply chains to the Netherlands. As Sierra Leone promotes its cashews and improves productivity, the country is poised to attract more global buyers.

Sierra Leone’s cashews are praised for their high kernel quality, which could differentiate them in the global market. Buyers from India, Vietnam, and other processing hubs value large, high-yield nuts. As international demand for cashew kernels grows at around 4–5% per year, Sierra Leone can enter premium segments.

Current markets for raw cashew nuts include India and Vietnam, while the EU, U.S., and Middle East could become key destinations for processed kernels. Scaling up local processing will be essential for capturing higher-value markets

The Port of Freetown serves as the central export hub. Sierra Leone has upgraded its customs systems to facilitate trade to reduce delays. Cashew exports require a license and are subject to a 2.5% export tax. The government, through initiatives like Invest Salone, is working to connect local suppliers with international buyers.

With these improvements, Sierra Leone’s cashew exports are expected to grow significantly, positioning the country as a rising player in the global cashew trade.

Cashew is a high-value crop with strong global demand. The market for cashew kernels grows at about 4.5% annually, fueled by rising health-conscious consumption. Sierra Leone’s strategic location along Atlantic shipping routes offers potential cost advantages over Asian suppliers.

Raw cashew nuts are non-perishable, reducing post-harvest losses and simplifying logistics. For investors, this means a stable supply chain and lower operational risks than perishable crops.

Investing in cashew plantations offers steady returns. Trees start producing commercial yields in 3–5 years, with increasing profitability as they mature. A 2.5-hectare farm currently generates about $800 in net annual profit. Improved techniques could double or triple yields, making cashew farming more lucrative.

Beyond nuts, cashew by-products like apple juice and nutshell oil present additional revenue streams, offering opportunities for new agribusiness ventures.

Processing cashews domestically increases profit margins. Shelled kernels sell for up to three times the price of raw nuts. While processing requires capital, Sierra Leone’s low labor costs and government tax incentives—such as tax holidays for agro-processing—boost investment appeal.

The newly opened Newton factory proves processing feasibility. Investors can expand their capacity through partnerships or independent ventures. Additionally, impact investors can value cashews’ social benefits, such as poverty reduction and women’s economic empowerment.

Sierra Leone offers key advantages: fertile land, an eager workforce, and high-quality cashew output. With supportive government policies and infrastructure improvements, early investors can establish a strong foothold in a growing industry. Addressing productivity and logistics challenges holds significant potential for long-term profitability.

Despite its potential, Sierra Leone’s cashew industry faces several challenges that investors must consider.

Low Productivity

Cashew yields are significantly lower than in neighboring countries due to poor agronomic practices, limited fertilizer use, and a lack of pruning. To enhance productivity and profitability, farmer training must be increased, seed varieties improved, and better orchard management adopted.

Limited Access to Finance

Most farmers struggle with limited access to credit, making it difficult to invest in farm maintenance before trees become productive. Unlike in other West African countries, pre-financing models and buyer advance schemes remain underdeveloped, leading to under-managed orchards.

Market Access and Value Chain Gaps

The sector lacks structured marketing systems. Without strong farmer networks, traders struggle to aggregate large volumes for export. Weak bargaining power leads to low farmgate prices. Strengthening cooperatives or establishing buying centers can improve market efficiency and profitability.

Infrastructure and Logistics

Poor rural roads make transporting nuts to processing centers and ports difficult, especially during the rainy season. Limited storage facilities risk quality deterioration. While port procedures are improving, high shipping costs from West Africa remain a barrier for exporters.

Land Ownership Issues

Foreign investors cannot own land and must lease through agreements with local chiefs. Navigating these negotiations can be complex. Government assistance can help secure long-term, transparent lease agreements, ensuring investor confidence.

Labor and Skill Shortages

Modern cashew processing requires technical skills that are currently lacking. Farmers also receive minimal extension services, and youth participation in agriculture is low. More training and mechanization are needed to support industry growth.

Market Fluctuations

Global cashew prices vary due to supply and demand trends, which can impact profitability. To manage risks, investors should consider forwarding contracts and adding value through local processing.

By addressing these challenges, Sierra Leone can strengthen its cashew industry. Government policies and donor programs are already working to improve the investment climate.

The Government of Sierra Leone is actively promoting cashew sector growth and investment through several supportive policies.

Agricultural Development Priorities

Cashew is recognized as a priority cash crop. The Cashew Value Chain Policy (2019–2023) and National Agricultural Transformation Programme (NAT 2023) focus on doubling production and linking large investors with local farmers to scale up operations.

Tax Incentives

Investors in cashew farming and processing benefit from up to 10 years of income tax exemption and a 50% reduction in dividend withholding tax. Import duties on agricultural equipment and inputs are waived to lower operational costs.

Export and Profit Repatriation

The Investment Promotion Act ensures free repatriation of profits and capital and protects against expropriation. Special Economic Zones (SEZs) and Export Processing Zones (EPZs) offer additional tax breaks for agro-processing ventures.

Land Access and Ownership

Foreign investors can lease land for up to 50 years, renewable. The government facilitates secure land agreements, ensures transparency, and reduces negotiation risks with local communities. A National Land Commission is being established to simplify transactions.

Institutional Support and Partnerships

The Sierra Leone Investment and Export Promotion Agency (SLIEPA) assists investors by providing market insights, facilitating partnerships, and hosting agribusiness forums. International donors, including the EU, World Bank, and IFAD, support cashew development through farmer training and supply chain programs.

Cashew-Specific Support

The government has formed a Cashew Working Group within the Ministry of Agriculture’s Tree Crops Division to distribute improved planting materials, set quality standards, and strengthen Sierra Leone’s integration into global cashew trade networks.

These policies offer Sierra Leone a favorable investment climate for cashew farming and processing. Early investors can benefit from tax breaks, government support, and a growing industry with significant long-term potential.

Sierra Leone’s cashew industry is set for significant growth over the next decade.

Rising Production

New plantings will steadily increase annual output. Within 3–5 years, production is expected to exceed 1,000 tonnes, potentially reaching 10,000 tonnes per year in the medium term. This expansion could position Sierra Leone among key West African exporters.

Value Chain Development

As production grows, investment in processing, storage, and logistics will follow. Expanding existing operations or creating new ventures is expected to lead to the construction of more processing facilities. Developing warehousing, transportation, and packaging services will strengthen the value chain.

Market Integration and Investor Interest

Sierra Leone is increasingly attracting international buyers. As major trading houses recognize its high-quality cashews, marketing and logistics challenges will ease. Government incentives and early successes draw foreign investors, creating opportunities for new processing ventures and farm expansions.

Socio-Economic Impact

Cashew farming will boost foreign exchange earnings, create rural jobs, and support environmental sustainability. The industry aligns with national goals for agricultural transformation and economic diversification.

Sierra Leone’s cashew industry is at a turning point. The country has ideal conditions for cashew farming and is improving infrastructure to support growth. For investors, this is a ground-floor opportunity in a sector poised for success. With strategic investments and government support, cashew farming could become a key driver of economic development.