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11.05.2004 Business & Finance

Nigeria Ban Ghana’s Starch

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Ghana's Efforts At Becoming A Leader In The Production Of Industrial Starch Now faces new challenges as the Nigerian Government's Unilateral ban on all cassava products is seriously affecting the cash flow situation of multi-million dollar Ayensu Starch factory.

Sources close to the starch factory say, it is loosing about US$80,000 in excess per every 1,000 tonne of shipment of starch made to the European Market as a result of the higher freight charges since the ban on importation of cassava to Nigeria was invoked by the Nigerian government, Ayensu's authorities have been forced to do longer haulage to seek new but less rewarding market in the European Union at extra freight charges instead of exporting to Nigeria which has a market potential of over a million tonnes per annum.

The Managing Director of Ayensu Starch factory, Mr Andrew Quayson told Peace FM that the ban came as a surprise to the company after the factory had had successful arrangement to sell made in Ghana starch. He explained that the substantial amount of income is now being loss due to the longer haulage to Europe.

Meanwhile, the acting Nigeria High commissioner to Ghana, Mr D.N. Sheni has reacted to questions on his country's ban on certain products from entering Nigeria which includes starch among other products. He denied that his government action was a direct contravention of the spirit of promoting intra regional trade within the ECOWAS region.