Komenda Sugar factory to be leased to Indian firm for 15 years – K.T. Hammond
The Minister for Trade and Industry, K.T. Hammond has announced plans by the government to lease the Komenda Sugar Factory to West African Agro Limited, an India-based firm, for a renewable term of 15 to 20 years.
The Minister says this is necessary to revitalise the struggling factory’s operations.
The Minister announced this during a working visit to the factory in the Komenda Edina Eguafo-Abirem Municipality of the Central Region.
The Minister for Trade and Industry said the initiative is part of broader efforts to boost the local sugar industry, reduce the importation of sugar, and create jobs because of the high demand for sugar.
The $35 million factory was inaugurated by former president John Mahama in May 2016. The project was funded by the Indian EXIM Bank to produce sugar to reduce the importation of the commodity and also create direct and indirect jobs for about 7,300 people along the value chain.
Operations of the factory came to a halt owing to a plethora of challenges after being commissioned by former President Mahama in May 2016.
The factory began to deteriorate until the government, in November 2019, signed a partnership agreement with a Ghanaian-Indian company; Park Agrotech Ghana Limited, expected to pump some $28 million into the project to revive it.
Former President Mahama, during a ceremony in the central region to introduce his running mate, reiterated his commitment to make the factory operational should he win the 2024 election.
In response, the Minister criticized the former President for superintending over a factory which had no clue about where raw materials for production were coming from.
He dismissed Mahama’s chances of winning the 2024 election and his commitment to revitalize the factory.