Mozambique secures duty-free cashew exports to China

MOZAMBIQUE – Mozambique has gained a significant opportunity to strengthen its agricultural exports as China approves duty-free access for three key products, including cashew nuts.

Mozambique’s cashew sector is set to thrive after a fresh agreement was signed between Maria Gustava, Mozambique’s ambassador to China, and Wang Hejun, China’s representative.

The deal, formalized on September 3 in Beijing, allows the export of cashew nuts, macadamia nuts, and pigeon peas to China without customs duties. The agreement is valid for three years and can be renewed.

According to Mozambique’s local media outlet, MzNews, this step aims to enhance trade relations between the two nations and stimulate economic growth by expanding Mozambique’s access to China’s vast market.

“The deal marks a crucial moment for our agricultural sector. It opens doors to one of the largest markets in the world,” said Maria Gustava.

Cashew nuts are one of Mozambique’s most important export products, alongside cotton, tobacco, and sesame.

With this new agreement, Mozambique is likely to further diversify its customer base and reduce its reliance on traditional markets. In 2023, Mozambique exported cashew nuts worth over USD 97 million, according to the Trade Map platform. With duty-free access to China, this figure could rise substantially.

China, a major player in the global cashew market, imported nearly USD 256 million worth of cashew nuts and kernels last year, mainly from Vietnam, Côte d’Ivoire, and Tanzania.

Mozambique’s inclusion in China’s zero-tariff policy, which covers 98% of African imports since 2022, places it in a strong position to increase its exports.

Mozambique has experienced notable shifts in its trade patterns, particularly in the first quarter of 2024. While India was the top destination for Mozambican exports, South Africa remains the largest supplier of goods to Mozambique, with a trade value of USD 481 million. China’s exports to Mozambique also rose by 21.4% year-on-year, reaching USD 361.3 million.

Despite the overall growth in trade with China, Mozambique’s imports from the United Arab Emirates and India saw a decline, mainly due to reduced demand for fuels and agricultural materials.

Nonetheless, the new trade deal with China provides a significant boost to Mozambique’s agricultural exports.

“The Chinese market is vast, and our cashew farmers stand to benefit immensely from this new opportunity. We’re optimistic about the potential for growth,” added a government official familiar with the trade negotiations.

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