Trade Ministry seeks strategic investor to revive Komenda Sugar Factory
The Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has told Parliament that the government has begun the process of securing a strategic investor to revive the Komenda Sugar Factory, which has remained non-operational for years.
She said a transactional advisor was being appointed to package the factory and attract a private-sector operator to bring the plant back on stream.
“I can assure you that we are working expeditiously to ensure that the Komenda Sugar Factory comes on stream,” she said.
Ms Ofosu-Adjare made the announcement yesterday when she answered questions on the floor of the House.
She explained that the factory, inaugurated in 2016 with a capacity to process 1,200 tonnes of sugarcane per day and produce between 112 and 150 tonnes of refined sugar per day, had failed to operate at full capacity due to technical and financial setbacks.
Debts, solutions
The minister said the plant’s machinery had not been refurbished since its construction, adding that generators and motors required maintenance, while part of the boiler system needed replacement.
She further disclosed that the Electricity Company of Ghana (ECG) and the Ghana Water Company Ltd (GWL) had disconnected the facility from the national grid because of accumulated bills.
In addition to deteriorating equipment, she said the factory had incurred significant debt, while the expected outgrower scheme to supply sugarcane had stalled due to weak institutional support and unclear procurement arrangements.
Mrs Ofosu-Adjare said that after assuming office last year, she visited Komenda to engage chiefs, farmers, Members of Parliament and other stakeholders.
Following that engagement, an Interim Management Committee (IMC) was constituted to undertake a comprehensive technical and financial assessment of the factory.
The minister stated that the IMC had submitted an interim report and was working on a full report to assess the factory’s assets and liabilities, determine its business viability and propose a sustainable raw material supply model.
On timelines, Mrs Ofosu-Adjare said once the transactional advisor was secured and a strategic investor identified, the factory would be operationalised.
She added that under the “Feed the Industry” programme, land had been secured to support sugarcane production through backward integration, pending the engagement of a private sector operator to specify the required cane varieties.
Under Feed the Industry, she said over 40,000 acres had been earmarked for commercial contract farming to supply raw materials to local factories.
The revival of the Komenda Sugar Factory, she said, would restore jobs, stimulate agro-industrial activity in the Central Region and contribute to reducing the country’s sugar import bill.
Component manufacturing
Ms Ofosu-Adjare said a draft Automotive Component Manufacturing Policy had been prepared to position Ghana as a regional hub.
The policy, she said, was to attract investment into vehicle parts production and position incentives for the sub-sector in line with the government’s revenue objectives.
The minister also disclosed that 79 firms, supported to attend trade fairs in China, Germany and Italy, secured $325 million and €2.7 million in export orders.
Additionally, 62 Small and Medium Enterprises (SMEs) were trained, and 850 Micro, Small and Medium Enterprises (MSMEs) received business advice.
Mrs Oforu-Adjare also stated that the government had also banned exports of raw rubber and non-ferrous scrap metal to protect domestic processors and strengthen integrated agricultural value chains.
