India, the world's largest processor of cashew kernels, depends heavily on imports of raw cashew nuts (RCNs), primarily sourced from Ivory Coast. While the Ivorian processing industry is still in its infancy, in the last decade domestic cashew factories have rapidly increased their capacity. This study is an exploration of how the cashew value chain is organized and what this implies for upgrading prospects in the Ivorian cashew sector. Its findings suggest that the cashew value chain is characterized by a bipolar governance structure comprising a trader‐driven segment between Ivorian farms and Indian processors, and a buyer‐driven segment that links processors to Northern end markets. The results are consistent with studies that describe South–South value chains as being less tightly controlled, with a decreased significance of quality related standards and lower entry barriers than those chains feeding into Northern end markets. Inter‐firm linkages in the Indo–Ivorian RCN channel provide few opportunities for product and functional upgrading of RCN suppliers. Considerable institutional support is needed to overcome the barriers to Ivorian firms' direct participation in the North–South value chain for processed kernels.