GuarantCo Backs $75m Cashew Processing Plant with 100% Credit Guarantee

Sunday Ehigiator

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, in a move aimed at strengthening Nigeria’s agro-processing sector and boosting local value addition.The project is expected to significantly expand Nigeria’s domestic cashew processing capacity and reduce the country’s reliance on exporting raw cashew nuts.

Nigeria produces between 250,000 and 300,000 tonnes of raw cashew nuts annually, ranking among Africa’s largest producers. However, less than 10 per cent of the output is processed locally, with most exported unprocessed to Asian and other international markets.

Industry stakeholders say exporting raw cashew nuts deprives Nigeria of up to 80 per cent of potential export value while increasing exposure to foreign exchange volatility.

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

According to GuarantCo, the new plant will more than double Robust’s existing cashew processing capacity 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, “The UK is proud to support innovative financing that mobilises private capital into Nigeria’s productive economy through UK-backed institutions such as PIDG,” Baxter said.“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.