<p></p><p>Two cashew businesses in Côte d’Ivoire have benefited from the Trade Hub’s network of Financial Advisors earlier this year, receiving a total of US$6.26 million as working capital and investment for a new cashew-processing facility. This type of financing supports the Ivorian Government’s policy to promote increased cashew processing in-country, generating jobs and furthering investments. The first recipient, a development-stage cashew nut processor, formalized a US$5.5 million loan in July with a local affiliate of one of the largest global banks. This business sources and markets raw cashew nuts and processes them into kernels. The loan will enable it to construct a modern cashew-processing facility and secure raw cashew nuts for processing. <br></p> <p>The Trade Hub Financial Advisor who facilitated the deal will also work on raising capital for the next phase of the recipient’s cashew project: an additional US$6.7 million to increase the business’s working capital and finance warehouse construction in 2017. The USAID Development Credit Authority has formally given a conditional commitment to back the second phase of the project with a 50% loan guarantee. In his report to the Trade Hub, the Financial Advisor highlighted some lessons learned: The transaction took a year to close due partly to the inexperience of the bank in lending to nascent cashew processors and partly due to the inexperience of the business’s management team in risk analysis and business strategy. The advisor praised the Trade Hub’s “exceptional” and “down-to-earth, sleeves rolled-up staff who understand the field” and “make for an effective and enjoyable engagement.” He will continue to provide various ancillary services from labor organizations, management risk review, branding, and financial analyses to support the business’ efforts to meet its targets. <br></p> <p>The second recipient, an exporter of raw cashew nuts to Asia, received a loan of about US$760,000 in April from a regional bank— to satisfy the business’s working capital needs. The loan will help the business secure raw cashew nuts at farm gate prices to satisfy a 10,000 MT demand for cashews from its clients in India, Vietnam, and China in 2016.<br></p><p></p>