Chiquita has abandoned its plans to grow and export bananas from Angola after a lengthy period of research and negotiations.
US Chiquita Brands International Inc had been working with Portuguese company Escom to secure the project, but the announcement it is not going to pursue the investment will come as a blow to the Angolan government.
It had been hoping the Chiquita move could help the country’s ailing farming industry and supplement the country’s two main exports, oil and diamonds, which have experienced considerable price decreases during the recession.
The government has invested $1 billion (£629 million) this year to secure the future of the farming industry and, in doing so, help the vast number of Angolans living in poverty.
Escom, the Angolan arm of Portugal's Grupo Espirito Santo said it had decided to turn its back on the project, despite two years of consultations, because the land it had purchased was too far from the port of Lobito, creating logistical challenges that made the venture less viable.
Helder Bataglia, head of Escom, said the recession had played a part in the decision with international prices affecting profitability, but insisted its commitment to looking for further business with Chiquita in the banana sector is strong.
Bataglia, speaking at the inauguration of Escom's new $135m building in Luanda, Angola, said: “We had to relocate to an area further away from the centre of Lobito and Benguela than we had wanted.”
No comments yet