Zambia - Cashew Infrastructure Development Project (CIDP) – SESA Summary – 06 2015

In Zambia, cashew trees are grown along the cashew hub, which is characterized by Kalahari sands that are relatively poor soils for most conventional crops. The cashew trees were first introduced by the Portuguese Traders in Barotse Land (Western Province) in 1940s. The growth of the cashew industry was very slow due to low production, lack of marketing and processing facilities. In 1985, the Zambia Cashew Company (ZCC) was established by Government of Zambia (GoZ) which managed to create commercial estates and cashew processing factory. Based on this, the cashew industry improved from 1986 to 1995 but drastically declined from 1996 due to sudden withdrawal of financial support to the ZCC and also premature inclusion of the ZCC on the privatization list. The GoZ has developed the National Cashew Development Strategy (NCDS: 2012-2016). The Strategy was prompted by GoZ and Citizens Economic Empowerment Commission (CEEC) which financed some preliminary cashew activities including (i) importation of cashew scions from Mozambique and (ii) establishment of cashew nurseries. The Cashew Growers Association of Zambia (CGAZ), member of the African Cashew Alliance, produced the Cashew Development Initiative (2014) in order to revive the cashew value chain. Due to the potential economic, social and environmental benefits of the cashew sub-sector, the GoZ included the CIDP on the priority list of the 2015-2017 pipeline projects. The GoZ requested financial support from the AfDB for the development of cashew tree crop project in Western Province. The Project is aimed at reviving the cashew industry by focusing on infrastructure development for the cashew value chain including cashew production, processing and marketing. The Project will aim at contributing to GoZ’s efforts of increasing crop diversification, productivity, processing and improving market linkages. CIDP will mainly contribute to core operational priority of infrastructure development and will ensure proper governance and accountability in its implementation.