GuarantCo guarantees $75m debt for new cashew processing plant in Ogun State, boosting local processing and economic value in Nigeria

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a 100 per cent credit guarantee to support a $75 million debt facility for Robust International Pte Limited to construct a new cashew processing plant in Ogun State, Nigeria.

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The initiative is aimed at strengthening the country’s agro-processing sector and boosting local value addition.

The project is expected to significantly expand domestic cashew processing capacity, reducing Nigeria’s reliance on exporting raw cashew nuts.

The country produces between 250,000 and 300,000 tonnes of raw cashew nuts annually, ranking among Africa’s largest producers, but less than 10 per cent is processed locally, with the majority exported unprocessed.

Industry experts note that exporting raw cashew nuts deprives Nigeria of up to 80 per cent of potential export value and exposes the economy to foreign exchange volatility.

The new facility is expected to bridge this gap by retaining more economic value within the country.

The plant will more than double Robust International’s current cashew processing capacity, increasing output from 100 metric tonnes per day to 220 metric tonnes per day.

British Deputy High Commissioner to Nigeria, Jonny Baxter, said the United Kingdom supports financing initiatives that mobilise private sector capital into Nigeria’s productive sectors.

He added, “By backing investment into local processing and value addition, this transaction supports jobs, exports and more resilient agricultural supply chains. Through the UK-Nigeria Enhanced Trade and Investment Partnerships and the Developing Countries Trading Scheme, the UK is supporting Nigerian businesses to scale exports to the UK and beyond.”

Head of Africa and Middle East Investments at GuarantCo, Dave Chalila, described the transaction as part of ongoing efforts to channel private capital into underfinanced but high-impact sectors.

“This transaction marks GuarantCo’s third collaboration with M&G Investments and Symbiotics, highlighting our commitment to accelerating socio-economic development where it is most needed,” Chalila said.

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The new cashew processing plant represents a strategic step towards expanding Nigeria’s agro-industrial capacity, creating jobs, and capturing higher value from the country’s agricultural output.