Oct 19th 2011, 11:00 by P.L. | TECHIMAN

A MOUNTAIN of bulging jute bags hides the far wall of a vast shed. A deafening rattle comes from the machine by the open door, a green contraption of conveyors and rotating metal drums that sorts cashews by size and drops them into sacks. Amid the din, an engineer (Italian, like the machine) explains how it works.

The new factory at Techiman in western Ghana belongs to Rajkumar Impex, an Indian company which processes more cashews than anyone else: 8-10% of the global crop and 20% of Africa’s. Venkatesan Rajkumar, its founder and boss, says that by 2014 he intends to have 18% of the global total. When the Techiman factory is fully open, which it is due to be in November, it will be one of Africa’s few fully mechanised processing plants, drying, roasting shelling and grading some 50 tonnes of raw nuts a day.

African farmers grow about 40% of the world’s cashews, but only around 10% of the crop (less in the west, more in the east) is processed in Africa, according to the African Cashew Alliance, an industry group. Most African nuts go to India or to Vietnam, which grows and prepares more cashews than any other country. The Alliance wants the continent to process 35% of its own raw nuts by 2020.

Mr Rajkumar too believes that “west African nations should develop their own processing capacity” and sees an opportunity for his firm. He is investing $9m in the Techiman factory, expecting to save the cost of transporting bulky material by sea all the way to India. He intends to open factories in Benin and Côte d’Ivoire, and maybe another in Ghana. He is also expanding in southern and east Africa, buying a factory in Mozambique and hoping to build one in Tanzania.

West Africa seems a good base from which to serve Americans and Europeans with pre-prandial nibbles or beer-friendly fistfuls. India has a huge domestic market to satisfy—the world’s biggest, which grew more than 9% a year in the past decade. Vietnam, where Rajkumar Impex also has factories, is best placed for East Asia.

Locals, as well as Rajkumar Impex, stand to gain from the Techiman factory. It will employ 1,000 people, 90% of them women. Mr Rajkumar says their pay will depend on how much they process, but he expects it to be four to five cedis ($2.40-3.00) a day, plus food: a good wage by local standards. The company says it can improve farmers’ incomes as well. It reckons there is a margin of up to 20% between what agents pay them for their nuts and what it pays the agents. By dealing with farmers’ co-operatives instead of middlemen, the company can both pay farmers more and get raw nuts more cheaply.

As well as a boost to its economy, Techiman should also see a green boost to its power supply. Rajkumar Impex is spending another $9m on generating electricity from biomass, using nut waste and other material to be bought in. Of the 6MW it plans to generate, it expects to use 0.6MW and to give the rest to the local community. The government, though, will have to provide the wires. As travellers on the bumpy road to Techiman know, west Africa needs infrastructure as well as factories.

http://www.economist.com/blogs/baobab/2011/10/cashews-ghana

Seems to me that the Ogun and Lagos governors need to reach out to this Rajkumar fellow, see whether he can be persuaded to locate a factory in their domains.

^^^For some reasons known to him, the guy clearly avoided Nigeria in his expansion plan.

Perhaps. But then it is left to those governors I mentioned to do a bit of wooing.

Find out what "offer" Ghana made for this factory in Techiman and what offer Togo will likely make, and see whether you can match or beat it.

This is the type of industrialization I like.

A cashew processing plant will produce goods that are easy to move. Doesn't require any special expertise to work there. We aren't at a competitive disadvantage in this industry (unlike say manufacturing jets, to use an extreme example); won't require massive government subsidies to make the business successful.

And he is creating 1000 good jobs in this town, jobs going primarily to women. A job at this factory might be what a poor woman uses to send her children to secondary school or university.

I really hope we begin to think of how we can attract businesses like this.

Pukkah:

^^^For some reasons known to him, the guy clearly avoided Nigeria in his expansion plan.

These days, it is natural for most businessmen who have choices. I would avoid Nigeria too if I am not Nigerian. In fact, I have actually revised some of my plans for Nigeria. I have not arrived at this point through hearsay. I speak from actual experience. My brother , what my eyes has seen trying to do business in Nigeria I cannot even begin to tell you. At the end of it, you even feel extremely humiliated, frustrated and angry. This is why it is mainly insensitive thugs, crooks and hardened individuals who get on in Nigeria currently  .

The tragedy is that very few can match our potentials to attract investment if well harnessed but grotesque corruption, everywhere, means that everyone and everything is looked upon as entities to be extorted rather than potential wealth/job creators to be respected and assisted as much as possible. One of the way forward is for Governors to be up and doing as far as attracting investors. The Governors must identify potential growth areas, seek out directly suitable investors and engage them directly.

There are large Cashew plantations in the east. So I dnt see any problems if He doesnt build one in Nigeria.
I have seen a great deal of cashew plantations right from Enugu to Abia state. It's one of the major cash crops around the zone.
He's scared of the competition.

Pukkah:

^^^For some reasons known to him, the guy clearly avoided Nigeria in his expansion plan.

the guys friends in airtel have warned him

The dude processes 8-10% of the cashews on earth. More than anyone else on this planet. And you think he is afraid of the competition?  

At any rate. . . Gbawe, I don't know how well-connected you are to prominent members of the ACN in those states I mentioned. But this is definitely worth bringing up, imo. The company's contact information is online. Whoever the commissioner for trade is in Ogun or Lagos should give him a call, I think.

Cashew processing plants arent unusual in nigeria.

No biggie.

ekt_bear

Perhaps. But then it is left to those governors I mentioned to do a bit of wooing.

Find out what "offer" Ghana made for this factory in Techiman and what offer Togo will likely make, and see whether you can match or beat it.

^^@ekt_bear - What "offer" do you think they made to the savvy Indian business man? It is not a secret that Nigeria is a rough and business unfriendly place but for cowboys and professional cheats. Please see the post below by[b] Gbawe[/b] for a clearer insight about the Nigerian condition despite our so much touted Potentials. Business men bring changes but the Governors/Administrators [/b]must establish the enabling environment for serious honest investors (local or foreign). Nigeria is an extremely high cost place to do business in. Try to find out about the experience of the "famous" Zimbabwe white farmers/investors in Nigeria(Kwara state). They are not finding the experience exactly as they hoped. Our banks are uncreative, lazy and very unhelpful for agric business besides our almost non existent infra-structure compared to Zimbabwe eats up their primary capital as they have to literarily install electricity, build or find water supplies and even roads etc.

[b]Gbawe

These days, it is natural for most businessmen who have choices. I would avoid Nigeria too if I am not Nigerian. In fact, I have actually revised some of my plans for Nigeria. I have not arrived at this point through hearsay. I speak from actual experience. My brother , what my eyes has seen trying to do business in Nigeria I cannot even begin to tell you. At the end of it, you even feel extremely humiliated, frustrated and angry. This is why it is mainly insensitive thugs, crooks and hardened individuals who get on in Nigeria currently  .

The tragedy is that very few can match our potentials to attract investment if well harnessed but grotesque corruption, everywhere, means that everyone and everything is looked upon as entities to be extorted rather than potential wealth/job creators to be respected and assisted as much as possible. One of the way forward is for Governors to be up and doing as far as attracting investors. The Governors must identify potential growth areas, seek out directly suitable investors and engage them directly.

^-- Don't disagree with what you guys have said. All I'm saying is, let us at least try.

ekt_bear

All I'm saying is, let us at least try.

@^^ My brother you are not wrong with your hope/optimism. You'll agree with me that there is a[b] limit[/b] to human endurance/patience especially when the obstacles to your progress/development/project are by ordinary mortals like the police, customs&excise, ministries, the law of the land in some places e.g. Land Use Act which the Governors use and abuse like their personal property. It's actually easier for a Non-Nigerian(foreigner) to get ahead/navigate our system because of inherent inferiority complex pervasive amongst Nigerians/officialdom .

i dont think anyone is being begged to stay in nigeria or do business there.

if you feel ghana is better for you [@ anybody], then no wahala.