Innovation and Driving Impact: The Cashew Matching Grant Fund

Africa produces more than half of the world’s raw cashew nuts (RCN). Yet, in 2024, only 17% of this production was processed locally. This means missed opportunities to increase income, create jobs, and strengthen rural economies. Despite the sector’s potential to drive rural development, entrepreneurs and cooperatives in cashew-growing regions struggle with limited processing infrastructure, inadequate support and advisory services, as well as insufficient access to finance or networks to reach larger markets.To contribute to solving these challenges, the Joint Action Business Support Facility for Resilient Agricultural Value Chains implemented by GIZ/MOVE-ComCashew comes in with the financing tool Matching Grant Fund (MGF). The MGF develops and strengthens the capacities of stakeholders in the agricultural value chains of OACPS member states, such as cashew. It also mobilizes investment and financing, particularly for low-emission and climate-resilient practices.

The readiness program criteria for the Matching Grant Fund

The MGF empowers the private sector to take ownership of cashew development activities, becoming a strategic tool for promoting climate resilience, competitiveness, climate resilience and local wealth creation. By lowering traditional entry barriers, it creates opportunities for smaller stakeholders, particularly women, young people, and rural entrepreneurs.

A key innovative feature of the MGF is the inclusion of companies applying as part of a consortium. This means that lead applicants can partner with other organizations to strengthen supply chains and expand project networks. This model also supports the “missing middle” actors who may otherwise not be able to access such funds independently. Importantly, the MGF builds the capacity of private sector actors to eventually access other financing opportunities.

The fund’s regional scope makes it more dynamic, allowing applicants to apply in one or several countries, encouraging cross-border collaboration, shared learning, and knowledge exchange. By building strong public–private partnerships, the MGF fosters local ownership while catalyzing investment in high-impact cashew initiatives. Through this mechanism, selected innovations are scaled up to transform cashew production into a genuine engine of resilient and sustainable growth.

The readiness program and its seven steps from the idea to investment.

The MGF process follows seven sequential steps. It begins with the Call for concept notes and the invitation to candidates to participate in the readiness program.  Here participants receive technical and financial training, as well as capacity building for agribusiness models, gender inclusion, and financial readiness. The program is designed to guide applicants and provide them with adequate information about the MGF, enabling partners to submit high-quality proposals. Once the candidates have presented their concept notes, they will go through different assessments and interview phases in order to ensure the selection of high-quality project proposals. Once approved, the project will launch its activities and be supported with administrative, technical and monitoring advice during all project duration.

Since 2023, two calls for the cashew value chain have been carried out. Having undergone an independent evaluation process, 43 leading companies from 17 countries were selected, with a total budget of approximately €8.7 million, including a €3.4 million contribution from GIZ/EU and a little over € 5.3 million from the private companies

The most prominent themes across the selected projects are focused on climate resilience, sustainability, capacity building, and value addition through by-product valorization. These projects are targeting about 92.000 beneficiaries.

Five of the selected companies are European, while the remaining 38 are distributed across Africa, primarily in West Africa (22), followed by East Africa (9), Southern Africa (3), and Central Africa (2). As a flexible, impact-oriented financing instrument, the MGF offers an adaptable model for further value chains, such as those for rice and cocoa.

Some Key successes

The MGF promotes product developments such as the innovative use of cashew apples, shells for biochar, animal feed, as well as diverse ways of utilizing the nuts. Processing these by-products enables actors, especially women and youth, to utilize previously discarded resources and transform them into sources of income and empowerment.

One of the projects that arose out of the MGF is: “New approach to developing the cashew sector, via innovative valorization of cashew apples.” implemented by Tolaro Global in Benin. Through this project, 1,075 women and young people have been trained to transform cashew apples into Pomme Émincée (a dried apple used as a meat substitute), unlocking new income opportunities. Through the project, new local trade relationships are developing between cashew farmers and female entrepreneurs who process the apples. Farmers sell apples at 25 FCFA/kg (around 0,04 EUR/kg), which the women process and resell to Tolaro  Global at 610 FCFA/kg (around 0,93 EUR/kg). In just one season, a women’s group in Soubroukou sold 111 kg, proving how profitable this venture can be. Pomme Émincée is now a fast selling product, often sold out in Tolaro’s showroom. The impact goes far beyond income. Women have gained new economic power and independence: they can now stay with their families instead of migrating for work, pay school and invest  in building better homes. Families benefit directly, as cashew apple meat enriches household diets. Slowly, community life is transforming, and the cashew apple has truly gone from waste to wealth.

Meanwhile, in northern Benin, women are giving another by-product a second life. Due to the project “Support Rainforest Alliance certification and the valorization of cashew nut shells” implemented by URCPA-AD, cashew shells are being transformed into biochar and charcoal. This process creates income, reduces deforestation, and improves soil fertility.

The story doesn’t end at Benin’s borders. Through the ofi project “Cashew Apple as a Recipe for Women and Youth Empowerment” in Ghana, over 500 women and youth have learned to make juice, jams, candies, and seasoning powder from cashew apples. These products not only diversify diets but also generate additional income. Two cooperatives already sold out their first batches of cashew apple juice bottles within one month, revealing the potential of this For farmers like Esther B Ourou, these changes mean a brighter future not only for their farms but also for their children. She proudly shared: “Because of the child labor prohibition in RA certification, more children are now in school. In our community, 4 out of 6 children passed their BAC (Senior High School final Exam). This change has given our children a chance at a better future.”

Another important aspect promoted by the MGF is sustainability in the value chains. Through the “USIBRAS Factory and Farmer Faculty Improvement, Trainings and Certifications” project implemented by USIBRAS, over 1,200 farmers from 14 registered cooperatives in Techiman have received trainings and technical advise that follows the Fairtrade certification criteria. Today all the cooperatives are fair-trade certified partners use the training and preparatory support provided through the MGF to make significant progress towards certification. During this cashew season, 500,000 kg of raw cashew nuts (RCN) from these farmers were supplied to USIBRAS, earning them around €1 million, or 2 EUR per kg, compared to 1.5 EUR per kg for conventional RCN. Amankwah Matthew (farmer) shared: “Beyond better prices and stable markets, our community enjoys a healthier environment with clean water and improved soil fertility.” Plans are already underway to expand to other communities and move toward organic certification, ensuring that the transformation continues.

The impact continues in Tanzania Through the project “Improving women and youth income through total inclusion in cashew nuts value chain, regional and international Market linkages” implemented by Akros Company in Lidumbe -Tandahimba, over 200 women and youth have gained the skills to produce cashew butter, cashew milk, cashew flour and spices for use in salad dressings, smoothies, and more. This has created additional income opportunities. Participants now earn around 13,000 TZS (around 4,5 EUR) per kilo of processed cashews, compared to 9,000 TZS (3 EUR) previously earned from selling raw nuts (RCN). This project has been especially empowering for single mothers, helping them provide for their children.

From projects to systemic change

What started as a targeted intervention is now evolving into a pool of initiatives that are reshaping the processing, marketing, and value addition of cashews across multiple countries. Each project contributes to this larger transformation, whether through training, new products, climate-smart farming or women-led enterprises. Local actors drive innovation, add value close to the point of origin and improve the economic power of communities. By connecting investment with local ownership, the Matching Grant Fund is helping to redefine the future of the cashew sector, making it more resilient and sustainable.

*The Matching Grant Fund is implemented as part of the Joint Action “Business Support Facility for Resilient Agricultural Value Chains” co-funded by the European Union under the Samoa agreement with OACPS and by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ.