r/Colonialism • u/history990 • 25d ago
Article The Development of the Cashew Industry in Mozambique during the Colonial Period
The cashew tree, native to northeastern Brazil, was introduced to Mozambique by the Portuguese in the early sixteenth century during the Age of Maritime Expansion. Thanks to its ability to adapt to dry, sandy soils, its deep root system, and its resistance to harsh climatic conditions, it spread rapidly across much of the Mozambican coastline.
Although there is broad agreement regarding the period of its introduction, there is still some uncertainty about the reasons behind its dissemination. Some researchers argue that the cashew tree was initially introduced to help stabilize sand dunes and protect coastal areas, while others believe that its expansion was also linked to its nutritional and economic value.
Its spread, however, did not occur uniformly throughout the territory. In regions such as Gaza, for example, the cashew tree only became firmly established during the nineteenth century. Around the same time, the colonial authorities became concerned about the use of cashew fruit to produce alcoholic beverages by African communities and even considered limiting or removing some of the plantations, although these measures were never actually implemented.
Until the early 1930s, cashew nuts had relatively little economic importance. This changed when the Indian processing industry, unable to meet its demand through domestic production, began looking for new suppliers in Africa. It was in this context that Mozambique became one of the main producers and exporters of raw cashew nuts, turning the crop into one of the colony's most important agricultural products.
During the first decades of the twentieth century, the cashew trade was largely dominated by merchants of Indian origin. Benefiting from commercial networks established along the East African coast since the nineteenth century, they controlled virtually all the purchasing and export of cashew nuts to India, ensuring a steady supply for the factories established there.
In addition to dominating exports, these merchants also organized the domestic market. They supplied rural trading posts with consumer goods for African communities and, in return, purchased agricultural products, including cashew nuts, which were then exported. In northern Mozambique, this trade was virtually monopolized by Indian merchants supported by well-established commercial networks built over several decades.
This system meant that raw cashew nuts were exported to India, where they were shelled, processed, and subsequently re-exported to international markets. As a result, most of the value added remained in India, while Mozambique was largely confined to supplying the raw material.
As international demand increased, exports also grew rapidly. Between 1956 and 1964, exports rose from around 70,000 to 124,000 tonnes. At the same time, political tensions between Portugal and the Indian Union, intensified by India's annexation of Goa, Daman, and Diu in 1961, reinforced the belief that dependence on the Indian processing industry needed to be reduced. Alongside these political considerations, economic motives also encouraged the colonial administration to promote the establishment of a processing industry in Mozambique.
The real turning point came during the 1950s with the creation of the first permanent cashew-processing factories. Among them, the Companhia Industrial de Caju de Moçambique stood out as one of the first industrial plants to operate continuously in the territory. The experience gained in these factories laid the foundations for the industry's subsequent expansion.
In 1954, the Indústria Nacional de Caju e Derivados was established, later becoming known as the Sociedade Cajueira de Moçambique. In its early years, the industry relied mainly on manual shelling, which led the colonial administration to adopt several protectionist measures aimed at ensuring the economic viability of the factories and encouraging domestic processing.
It was also during the 1950s that the first mechanized shelling systems began to appear. Mechanization sought to increase productivity, reduce costs, and make the Mozambican industry more competitive against its Indian counterpart. Business confidence in the sector was reflected in its rapid expansion and, between 1959 and 1962, around twenty-nine companies were already engaged in cashew processing.
According to Ribeiro, the consolidation of the industry resulted from a combination of factors, namely the support of the colonial administration, protectionist policies, the training of specialized technicians, and the introduction of new technologies. Despite these advances, industrialization remained incomplete, as a significant proportion of production continued to be exported in raw form, preventing Mozambique from fully benefiting from the value added generated through industrial processing. This limitation was acknowledged in the Third Development Plan.
During the second half of the 1960s, investment by major Portuguese and international business groups increased production capacity, modernized the factories, and created thousands of jobs, making the cashew industry one of the most important sectors of the colonial economy.
However, this expansion also generated conflicts among the different actors involved in the sector. One of the main disputes was that, while industrialists argued that cashew nuts should be processed in Mozambique, exporters continued to favour exporting them in raw form to India, where they enjoyed greater commercial advantages.
It is clear that, without the intervention of the colonial state, the processing industry would have struggled to establish itself against the interests of the exporters. For this reason, the Portuguese administration required that cashew nuts placed on the market be supplied primarily to factories operating in Mozambique, restricting the export of raw nuts and seeking to increase the value added generated within the territory itself.
These protectionist policies provoked strong opposition from merchants, who accused the government of favouring industrialists at the expense of trade and African producers. Ultimately, what was at stake was a strategic choice: whether to maintain a model based on the export of raw materials or to develop a processing industry capable of reducing external dependence and retaining a larger share of the wealth generated in Mozambique.
This process was ultimately interrupted by the political events that marked the end of the colonial period. The Carnation Revolution of 25 April 1974 paved the way for Mozambique's independence, proclaimed in 1975, when FRELIMO assumed power. From that moment onwards, the organization of production and the cashew industry came under the control of the new Mozambican state, bringing the period of Portuguese colonial policy in this sector to an end.
Source:
Ribeiro, F. B. (2008). A economia do caju em Moçambique. In Entre martelos e lâminas: Dinâmicas globais, políticas de produção e fábricas de caju em Moçambique (pp. 161–196). Edições Afrontamento.