Government to lease Komenda Sugar Factory to Indian investors for about 20 years

In a bid to revive the collapsed Komenda Sugar Factory situated in the Central region, the Minister of Trade and Industry, Kobina Tahir Hammond, has announced government’s intention to lease the facility to Indian investors for about 20 years.

He noted that the lease agreement would be subject to renewal once the contract is signed.

Addressing journalists after touring the Komenda Sugar Factory on Wednesday, July 31, 2024, K.T Hammond indicated that the sugar factory was 100% owned by the Government of Ghana, with investors only managing the assets and paying government at the end.

He pointed out that government, however, does not have shares in the products [sugar] produced.

The Minister of Trade and Industry in an interview with the media said, “That whole thing belongs to Government of Ghana. The asset is ours; we are leasing it and there’s a board in place. It’s a company which has a board. We just put them in charge."

“We’re not going to have shares in their products but the company is 100% Ghana owned," he stated.

Answering the question on the duration of the lease to West Africa Agro-tech Limited, the trade minister said, “I am thinking of giving it to them 15 or 20 years with an option of an extension or some sort of renewal after the initial lease."

K.T Hammond stated that GH¢45million was expended by government to keep the Komenda Sugar Factory running.

He noted that West Africa Agro-tech Limited - the investors of the Komenda sugar factory brought in 1,000 tonnes of raw sugar for test run.

This was to determine if white sugar could be produced.

Government of Ghana handed over the Komenda Sugar Factory to a strategic investor in November 2019 after a three- and half-year break.

The $35million factory which was commissioned under former president John Dramani Mahama has not been working since May 2016.

President Nana Addo Dankwa Akufo-Addo in September 2018 disclosed that the sale of the factory was due to several deficiencies including unavailability of sugarcane in sufficient quantities in the catchment area.

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SA/NOQ