Chinese to invest $60m in Guinea Bissau's cashew industry

Investors from the People's Republic of China have pooled an estimated 60 million dollars to develop the cashew industry in Guinea-Bissau.

The announcement was made in December 2006 by the chairman of the Guinea-Bissau Traders Association (ACGB), Malam Nanco, in the country's capital Bissau during a week-long visit by the Chinese businessmen. Nanco said the investment will help cashew farmers to sell most of the their produce on the international market.

West African cashew growers have been battling with several problems that threaten their viability. Among them are low prices for the raw product, non-existent or low value-addition and increasing competition from countries like Vietnam. The Food and Agricultural Organization recently warned the government of Guinea Bissau against interfering with market forces by setting a floor price for the crop, thereby chasing many of the Indian and Pakistani middlemen to other growing nations and regions, and causing hardship for local farmers.

The Chinese businessmen also expressed interest in other agricultural activities, particularly rice farming and the fisheries sector.

APA News