The Ivorian cashew export company, Société Coopérative d’Anacarde du Kafigue avec Conseil d’Administration (SCAK COOP-CA), obtained a loan of $2,916,667 in March 2017 to purchase and export raw cashew nuts, and plans to install a processing plant next year, allowing the company to expand its service offerings and increase its revenue in the long term.
In September 2016, SCAK COOP-CA attended the Trade Hub’s Business to Business (B2B) workshop on how to “Increase Investment, Reconcile Small and Medium Enterprises with Financial Institutions.” The B2B brought together three financial institutions (Coris Bank, NSIA Banque, Oikocredit), members of the Trade Hub’s network of Financial Advisors, and 23 Ivorian exporting companies specializing in Trade Hub and Côte d’Ivoire National Exportation Strategy (NES) priority areas (e.g., cashew). With assistance from Mr. Charles Adegnandjou, the Trade Hub’s Finance and Investment Specialist, the CEO of SCAK COOP-CA, Mr. Zana Coulibaly, connected with Mr. Emmanuel Diabate, a Trade Hub Financial Advisor, to prepare a bank loan application. Thanks to the Hub’s support, SCAK COOP-CA succeeded in obtaining its first bank loan in March 2017.
Before the loan, the company received working capital from Indian buyers, who dictated the price of the nuts and put strong pressure on their own financial margin. In 2015, SCAK COOP-CA was the largest exporter of cashew in Côte d’Ivoire and bought and exported around 3.3% of the national cashew production. However, financial constraints led to fewer exports in 2016, with the company only buying and exporting 2.37% of the national production. From 2015-2016, SCAK COOP-CA sales decreased from 26.5 to 16.7 MT for a national production of 700 MT each year.
Now, with the new loan, SCAK CCP-CA expects 2017 to be a good financial year.
“We sincerely thank the Trade Hub because the loan and the relationship established with banks will give another dimension to our company,” said Coulibaly. “Trade Hub intervention constitutes a turning point in the history of SCAK. Now our project to move from a raw cashew export company to a cashew processing company will become a reality next year and we are confident that banks will follow to finance the project. ”