The Government of Ghana has announced plans to lease the Komenda Sugar Development Company Limited, also known as the Komenda Sugar Factory, to an Indian-based firm, West Africa Agro Limited, for a renewable term of 15 to 20 years.
This move, according to Minister of Trade and Industry K.T. Hammond, is aimed at reviving the factory’s operations to meet the country’s domestic sugar demand.
The factory, originally established in 1964, had been out of operation for an extended period, with efforts to revamp it dating back to 2016 when the previous administration secured significant loans for its rehabilitation.
During a recent tour of the facility, K.T. Hammond disclosed that the factory is currently undergoing a test run in preparation for full-scale production.
He emphasized the government’s commitment to leasing the factory to West Africa Agro Limited, noting, “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 is going to work on it. I mean, use our assets, our equipment, use it, and then pay us back.”
He further clarified that while the government would not hold shares in the products of the company, the agreement allows for an extension or renewal of the lease after the initial 15 to 20-year period.
The Minister also criticized the previous National Democratic Congress (NDC) administration for what he described as a rushed and flawed commissioning of the factory in 2016.
“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,” Hammond remarked, highlighting the NPP government’s efforts to correct these issues.
He pointed out that despite substantial investments, the factory had not functioned as intended, and his government had been forced to invest further to get it operational.
