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The government of Ghana is set to lease the Komenda Sugar Development Company Limited, commonly 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 initiative is part of the government’s efforts to revive the factory’s operations and meet domestic sugar demand.
Established in 1964, the Komenda Sugar Factory ceased operations for an extended period. In 2016, the previous NDC government secured a $35 million loan from the Indian Export-Import Bank and an additional $24 million investment to revamp the factory.
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The factory is currently undergoing a test run in preparation for full production. During a recent tour, Minister of Trade and Industry K.T. Hammond announced that the government is prepared to lease the factory to West Africa Agro Limited for up to 20 years, with renewal options. He explained, “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. At the end of the day, we’re not going to have shares in their products, but the company is 100% going to own, thinking of giving it to them for 15 to 20 years with an option of an extension or some sort of renewal.”
Minister Hammond highlighted the government’s commitment to revitalizing the factory and criticized the previous administration for its handling of the project. He noted, “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 also mentioned that the NPP government had to invest additional funds to get the factory running, estimating that the actual cost of the factory should have been about $18 million.
