Ghana’s largest cashew processing company, Usibras Ghana Limited, has made public its intention to relocate operations to the Ivory Coast.

This, according to them, is as a result of severe challenges such as lack of raw materials, high utility costs, unfavorable export tariffs, and the difficulty of sustaining continuous operations threatening its survival.

Usibras Ghana Limited has operated a 24-hour production cycle in Ghana for the past decade with an installed capacity to process 35,000 metric tonnes of cashew annually.

However, it was only able to secure 7,000 metric tonnes of raw cashew nuts this year.

“Ghana’s cashew supply cannot sustain industrial-scale processing,” the company noted, warning that the shortage has crippled its ability to remain competitive.

In March this year, Finance Minister Dr. Cassiel Ato Forson, has disclosed that renowned pen manufacturer BIC has shifted its production operations to the Ivory Coast due to Ghana's prevailing economic challenges.

Below is the full statement

Usibras Ghana Limited Set to Relocate Operations to Ivory Coast Due to Persistent Challenges

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Usibras Ghana Limited, the largest cashew processing company in Ghana, is considering moving its investment and operations from Ghana to Ivory Coast, where raw materials are more readily available to sustain year-round processing.

The company, which has been operating a 24-hour production cycle for the past ten years, cites the following key challenges as the reasons behind this potential relocation:

Lack of raw materials Ghana’s cashew supply cannot sustain industrial-scale processing. With a plant capacity of 35,000 MT per annum, Usibras Ghana Limited was only able to secure 7,000 MT of raw cashew nuts this year.

High cost of utilities electricity and other operational inputs have become increasingly expensive, impacting competitiveness.

Unfavorable export tariffs – the company’s major market is largely in the USA, and with the 15% tariff imposed on products from Ghana, Usibras is struggling. Not having raw materials to process, combined with the heavy tariff burden, makes the market unsuitable to explore competitively.

Difficulty in sustaining continuous operations.

Economic and Social Implications

The relocation of Usibras Ghana Limited will have significant ripple effects across Ghana’s economy and social structure:

Job Losses: Out of its current workforce of 700 employees, the company has already begun gradually reducing staff strength after processing the limited volumes of raw cashew nuts available. A complete shutdown would displace all employees, creating severe social and economic distress for hundreds of households.

Impact on Farmers: Farmer associations that supply cashew to the company will lose a key market for their produce, disrupting livelihoods and discouraging production.

Effect on Exports: Usibras is one of the few companies generating substantial foreign exchange inflows into Ghana through its banking operations with Standard Chartered Bank. The move will further reduce Ghana’s export earnings.

Collapse of Industry Association: As a major player in the Association of Cashew Processors Ghana, the relocation is expected to weaken the association and reduce its ability to advocate for the industry.

Impact on Service Providers: Numerous businesses and service providers that support Usibras will be negatively affected, forcing them to seek alternative opportunities or close down.

Social Security and Tax Implications: As a company that contributes significantly to SSNIT (Tema East District) and PAYE taxes, the relocation will reduce government revenue streams in the long term.

A Looming Disaster

The potential relocation of Usibras Ghana Limited poses a major threat to Ghana’s cashew processing sector and industrialization agenda. The move represents not just the loss of an employer but also a weakening of the entire cashew value chain from farmers to exporters to service providers.

Unless urgent interventions are made to address the critical issues of raw material availability and utility costs, Ghana risks losing one of its most consistent and reliable cashew processing firms. The inability of a factory with a capacity to process 35,000 MT to secure more than 7,000 MT this year is a clear signal of systemic challenges in the sector. If left unresolved, this crisis will cost Ghana hundreds of jobs, millions in foreign exchange, and a setback in the country’s agribusiness development efforts.

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Government’s Role in Safeguarding the SectorThe government needs to urgently safeguard the future of Usibras and other processors and future investors by:

Ensuring that all rules and regulations in the cashew sector are properly applied to protect local processors.

Introducing tax policies similar to those in Ivory Coast to protect processors and make the sector competitive.

Establishing a task force to control and regularize the system, ensuring both processors and farmers are protected.

Without swift intervention, Ghana risks losing not only Usibras but also investor confidence in the cashew sector and beyond.

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Dr. Ato Forson attributed this relocation to Ghana's ongoing economic downturn, stating that neighboring countries are now reaping the benefits of Ghana's crisis as companies opt to move their manufacturing operations elsewhere.

Following President Akufo-Addo's 2024 State of the Nation address on Monday, March 11, Dr. Ato Forson, who represents Ajumako-Enyan-Essiam, urged the Akufo-Addo administration to swiftly implement measures to address the situation.

"Mr Speaker, I am sad to point out that the almighty BIC, the pen-producing company, has stopped producing its pens in Ghana. It has relocated its production to Ivory Coast."

"By relocating BIC pen’s production to Ivory Coast, we have exported those jobs. This is bad news for Ghanaian employees!"

"Again, Mr Speaker, Unilever Ghana, which has for a very long time been producing its famous Lipton tea in Ghana, has stopped its tea production here. Unilever has relocated its tea production to Nigeria."

He also highlighted the growing discontent among Ghanaian youth with the country's management, emphasizing that this should be a significant concern for all individuals in positions of authority.