Feasibility Study for the establishment of a Large-Scale Cashew Processing Plant

  • Zambia
Duration of assignment

3 months

Year: 2018 - 2019

  • African Development Bank
Description of project

The main purpose of the study was to conduct an in-depth feasibility study that integrated analysis of technical, commercial, institutional, financial, economic, social, and environmental aspects for the viability analysis of the cashew value chain and to justify the need for a large-scale commercial processing plant for cashew nuts in Western Province. The consultancy examined delivering, as its key output, a bankable document for soliciting public/private sector financing for a large-scale cashew processing plant. The proposed large-scale cashew processing plant was expected to have enhanced value addition through agro-processing and thereby contributed to the goal of industrial development.

Services provided
  • Undertook an in-depth technical assessment of the structure, preliminary and subsequent status of cashew nut production and productivity, consumption patterns, input suppliers, and processors, export markets for these products, as well as import patterns in this sub-sector.
  • Undertook market analysis to establish marketing arrangements, major processors, major consumers, and the level of global competition in the market.
  • Undertook an analysis of standards and quality aspects to meet local and international market demand and requirements.
  • Undertook an in-depth analysis that revealed potential business opportunities for Zambia based on existing and potential comparative and competitive advantages in large-scale cashew processing.
  • Conducted an in-depth assessment that highlighted factors contributing to the successful establishment of a large-scale cashew processing plant in the region and identified challenges that were being faced, including interventions for enhancing competitiveness.
  • Analyzed and recommended potential strategies and benefits of setting up and linking smallholder cashew growers with the large-scale processing plant.
  • Undertook a detailed value chain analysis to identify investment opportunities and challenges, taking into account the regulatory environment, and proposed interventions for exploiting the business opportunities.
  • Proposed regional networks to be developed and exploited with a view to facilitating the development of business linkages, complementarities, and synergies, thus improving the competitiveness and sustainability of the cashew plant.
  • Developed a bankable project proposal, which was marketed to DFIs and the private sector for funding based on the in-depth analysis conducted.
  • Prepared financial projections based on market estimates and investment needs.
  • Recommended the best way and institutional modalities for managing and financing the large-scale processing plant.
  • Identified issues requiring resolution ahead of actualizing and completing the underlying project.
  • Prepared ancillary documentation, if required, to ensure the Investment Proposal was adequate and provided a solid base to proceed with actualizing equity injection.
  • Produced engineering design prototypes for the processing plant with BOQs (Bill of Quantities) and tender documents.
  • Analyzed the potential internal and external risks envisaged for such a large plant and proposed mitigation strategies to address these risks.


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