(Ecofin Agency) - In Ghana, reality dawned on Brazilian firm Usibras, quite rapidly. In the space of five months only, Brazil’s biggest cashew processing firm who injected $35 million to develop a processing plant in Ghana has started complaining about challenges associated to cashew supply.

The plant which was announced at the beginning of 2015 was finally established in November. It has a capacity of 35,000 tons and its output was to be exported to Usibras’ American branch.

Unable to get enough of the commodity on field due to Ghana’s low output (70,000 tons), the firm turned to the Ivorian market, but once again the ban of land imports in Cote d’Ivoire impaired supply. Turning to Burkina seems unlikely to improve the situation. As a result, the firm had to cut its labor down 20% from 641 to 521 workers. If the situation prolongs, the firm could shut down, according to Tarcio Falcao who heads it.

Ghana’s government committed to signing a memorandum of understanding to develop cashew industry within 60 days. Could this save the Brazilian company? Anyhow, Brazil’s embassy to Ghana says the country has the potential to boost its production, but highlighted that this would be possible only through a combined effort. About two years ago, Usibras said it decided to build its plant in Ghana because “it is the safest country of the region”. Given the actual context however, one might consider Usibras’ attempted experience in Africa a failure

Aaron Akinocho