Setting up a cashew plantation project with the Wouol association Burkina Faso


Banque africaine de développementProgramme d’investissement forestier

Services: Diagnostics and feasibility studies

Countries: Burkina Faso

Dates of intervention: 2013/06 - 2013/07

Amount executed: 12 900 €
Total amount of the service: 12 900 €

Main backer: Banque africaine de développement - Client

Main beneficiary: Programme d’investissement forestier

Support provider: SalvaTerra

Experts: Olivier BOUYER, Maden LE CROM

Certificate of satisfactory executionCommon Format for Project/Program Concept Note for the Use of Resources from the FIP Competitive Set-Aside

Context of the service

$50 million in concessional loans have been set aside by the Forest Investment Program (FIP) to finance private-sector-led REDD+ projects in the eight pilot countries, including Burkina Faso. These projects had to be submitted to the FIP, with a view to their competitive selection. The AfDB called on SalvaTerra to help identify and structure projects in Ghana, Burkina Faso and DRC.
In Burkina Faso, after multiple discussions, the Wouol association was identified as a potential project involving the planting of 5,300 ha of cashew trees, the development of two nurseries, the improvement of the processing process, in quality and quantity and the improvement of the marketing of cashew nuts. The project budget is $6.5 million, including $3.6 million in concessional lending from the PIF .

Services provided

After identification of Wouol following multiple interviews, the preparation of the project idea note started with the exhaustive analysis of all the documents provided by Wouol concerning its activities, as well as sectoral studies on cashew nuts.
After that, the note was drafted, with two distinct parts:
- Compliance with FIP investment criteria: carbon sequestration potential using FAO's EX ACT tool, replication potential, cost/benefit ratio in USD/tCO2eq, technical feasibility, environmental and social co-benefits, compliance with AfDB and FIP safeguard clauses;
- Practical engagement modalities: description of activities and their innovative character, study of the Organic and Fair Trade certified cashew market, Business Plan and cash flow plan, potential risks and mitigation measures.
The project idea note was rated excellent and ranked 2nd out of the 11 project idea notes presented.

Summary of the service

Preparation and competitive selection of the project (2nd out of 11 projects presented) submitted to the private window of the Forest Investment Program (FIP): certified organic and fair trade cashew plantations and upgrading of 3 processing plants. Budget : 6,5 MUS$. Bearer: Association Wouol.