The government has announced plans to lease the Komenda Sugar Development Company Limited to West Africa Agro Limited, an Indian-based firm, for a renewable term of 15 to 20 years.
The Minister of Trade and Industry Kobina Tahir (K.T.) Hammond stated that this initiative aims to revive the company’s operations to meet domestic demand.
The Komenda Sugar Development Company Limited, also known as the Komenda Sugar Factory, was established in 1964 but has been inactive for an extended period. In 2016, the previous NDC government secured a $35 million loan from the Indian Export-Import Bank, followed by an additional $24 million investment to revamp the factory’s operations.
Currently, the factory is undergoing a test run in preparation for full production. During a recent tour, Minister K.T. Hammond announced that the government is ready to lease the factory to West Africa Agro Limited for up to 20 years, with options for renewal.
“It’s a company with a board, and we just put them in charge. But it’s 100% Ghana-owned. We are leasing our assets to a company that will work on it, use our equipment, and then pay us back. We’re not going to have shares in their products, but the company is 100% going to own it. We’re considering giving it to them for 15 to 20 years with an option for extension or renewal,” Hammond explained.
He emphasized the government’s commitment to revitalizing the factory and criticized the previous administration for its lack of diligence. “In 2016, there was a rush to commission it before the next election. It was commissioned and hasn’t worked since. Nothing was properly put in place. As you now see, a lot of things went wrong with this factory,” he remarked.
Hammond further highlighted the financial mismanagement, stating, “In response to a question in parliament, I explained the genesis of this and why it hasn’t worked, how much money has been expended on this edifice, and how much should have been the actual cost. My government, the New Patriotic Party (NPP), has had to invest more to get it running. A factory of this capacity even now should be costing about 18 million or so dollars.”
