Govt to hand over Komenda sugar factory to Indian&based firm for 15 to 20 years
In revitalising the country’s sugar industry, the government has announced its decision to release the Komenda Sugar Factory to an Indian-based firm, West Africa Agro Limited for a renewable term of 15 to 20 years.
This move is expected to breathe new life into the factory, which has faced numerous challenges since its commissioning.
The Komenda Sugar Factory, located in the Central Region was originally established to reduce the country’s dependence on imported sugar and to create job opportunities for the local population.
Despite its potential, the factory has struggled with operational inefficiencies, financial constraints, and management issues, leading to intermittent closures since its inauguration.
The agreement with West Africa Agro Limited marks a strategic partnership aimed at leveraging the expertise and resources of the Indian-based firm to turn around the fortunes of the Komenda Sugar Factory.
The firm is expected to invest significantly in modernising the factory’s equipment, improving operational efficiencies, and ensuring sustainable sugar production.
The Minister of Trade and Industry K.T. Hammond said this initiative aims to revive the company’s operations to meet domestic demand.
He said “It’s a company which has a board. We just put them in charge. But it’s 100% Ghana owned. But we are leasing it. We are leasing our assets to a company that will work on it. I mean, use our assets, our equipment, use it, and then pay us back. We’re not going to have shares in their products, but the company is 100% going to own them, thinking of giving it to them for 15 to 20 years with an option of an extension or some sort of renewal.
KT Hammond highlighted the government’s commitment to revitalising the factory and criticised the previous administration for its lack of diligence.
“2016 into the next election, there was a rush to commission it. It was commissioned and hasn’t worked since. Nothing was put in a proper place. As you now see it. A lot of things went wrong with this factory here. I’ve said it many times,” he stated.
The government anticipates that the revamped factory will create numerous job opportunities for the local community, boost the economy of the Central Region, and contribute to the overall growth of the agricultural sector in Ghana.
