Tuesday, August 27, 2019

[IVC]: Ivory Coast's Government wants to build 108 warehouses in cashew production areas

August 27, 2019

(Agence Ecofin) - In Côte d'Ivoire, the executive wants to build, over three years, nearly 108 cashew storage warehouses in the country's production areas.
Ivory Coast: Government wants to build 108 warehouses in cashew production areas
The contract for this project was signed between Justin Koffi, General Manager of the Storage Receipt System Regulatory Authority (ARRE) and Zhong Yanmin, CEO of Chinese TBEA Group, in mid-August.
With a total cost of CFAF 157 billion, these facilities will have a total storage capacity of 500,000 tons of cashew nuts, or nearly 65% ​​of the country's annual harvest.
The different warehouses should allow farmers to store their crops instead of selling them to meet their immediate cash needs, even when market prices are low.
By storing their production, they get warehouse receipts (RE) which can be used as collateral, in exchange for a bank loan to finance their activity.
Beyond this utility for cashew producers, the warehouse receipt system allows processors and exporters to develop the nut supply chain.
As a reminder, the warehouse receipt system exists since 2015 in Côte d'Ivoire.
Reporters

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