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Tag: Komenda Sugar Factory

  • Komenda Sugar Factory buried in debt, utilities disconnected – Trade Minister discloses

    Komenda Sugar Factory buried in debt, utilities disconnected – Trade Minister discloses

    Trade Minister Elizabeth Ofosu-Adjare has announced that the Komenda Sugar Factory has lost access to electricity and water services because of unpaid utility bills.

    She delivered the update while addressing Parliament of Ghana on Tuesday, February 17, 2026, during a briefing on the condition of the Komenda Sugar Factory.

    “The factory has been disconnected from the national grid by the Electricity Company of Ghana and water supply by Ghana Water Company Limited due to unpaid bills. Added to the poor state of the equipment, the facility has accumulated significant debt,” She stated.

    Operations at the Komenda Sugar Factory have stalled, with the facility failing to produce sugar and deteriorating six years after it was commissioned.

    The lawmaker indicated that the plant is weighed down by heavy debt, which has worsened long-standing technical and operational problems and halted its activities.

    She noted that the factory cannot function at full capacity because its machinery and equipment have serious defects and have not undergone refurbishment since the plant was completed in 2016.

    “Technical and operational deficiencies have prevented the factory from running at full capacity. The machinery and equipment of the factory have not been refurbished since construction in 2016. Equipment generators and motors need maintenance, and the boiler top coil needs replacement to bring the factory back to life,” she told Parliament.

    Mrs Ofosu-Adjare also stated that the facility had been cut off from the national power supply by the Electricity Company of Ghana and from water supply by the Ghana Water Company Limited as a result of outstanding bills.

    Aside from utility and infrastructure difficulties, the Minister identified shortage of raw materials as another major factor delaying the factory’s revival.

    She explained that the farming communities expected to supply sugarcane have withdrawn participation, mainly due to weak institutional backing and unclear procurement systems.

    “The farming community which was expected to anchor the raw material supply remains disengaged due to lack of institutional support and unclear procurement channels,” she noted.

    Outlining government’s intervention plans, Mrs Ofosu-Adjare disclosed that the Ministry of Trade and Industry has prioritised securing a transactional advisor to reorganise and present the factory to private investors.

    “The ministry has prioritised the engagement of a transactional advisor to package the factory and secure a strategic investor to operationalise the factory and farms in the 2026 budget,” she said.

    The Komenda Sugar Factory, which was launched as a major industrial initiative under Ghana’s industrialisation programme, was designed to reduce dependence on imported sugar and generate employment opportunities in the Central Region.

    Nonetheless, continuous operational challenges have left the plant mostly inactive, leading to renewed demands for a lasting recovery plan centred on private sector participation and stronger links between farming and factory operations.

    The Sugarcane Farmers Association of Ghana has urged the Minister of Trade, Agribusiness, and Industry, Elizabeth Ofosu-Adjare, to take swift and decisive steps to revive the long-dormant Komenda Sugar Factory.

    In a statement issued on May 4 2025, the Association voiced deep disappointment with the Ministry’s recent response to their concerns, describing it as “unconvincing” and lacking a sense of urgency.

    The farmers urged the current NDC administration, led by President John Mahama, to avoid repeating the mistakes of the previous NPP government, which they accuse of making repeated promises but failing to get the factory operational.

    They stressed that reviving the factory is critical not only for their livelihoods but also for boosting local industry and reducing sugar imports.

    “We campaigned and voted for John Mahama because we believed he could revive this factory to improve our livelihoods,” the Association stated.

    The Association expressed concern that two months after the Minister’s visit to the Komenda Sugar Factory, no visible progress has been made, and the facility was not even mentioned in the 2025 national budget.

    They are calling on the government to urgently constitute a board of directors for the factory, emphasizing the need for competent leadership and the inclusion of a representative from the farming community.

    “We are ready to feed the factory with sugarcane. All we need is government commitment,” they said.

    Speaking on Yɛn Nsempa, the morning show on Onua FM hosted by Nana Yaa Brefo Danso, Secretary of the Association, Nana Joshua Kingsley Mensah, reiterated the frustrations of the farmers. “We feel deceived. After the Minister’s visit in February, we expected action. But there’s nothing happening on the ground,” he said.

    He added, “The livelihoods of hundreds of sugarcane farmers depend on the revival of this factory. We are ready to work, but the silence from the government side is worrying.”

    Nana Joshua also stressed the need for farmers to be included in the decision-making process. “We are not just suppliers—we are stakeholders. Our representation on the factory board is non-negotiable.”

  • Expanded sugarcane farms intended to supply to Komenda Sugar Factory in limbo

    Expanded sugarcane farms intended to supply to Komenda Sugar Factory in limbo

    Sugarcane farmers in the Central Region, who were directed by the management of the Komenda Sugar Factory to expand their farms with hopes of supplying to the factory have been disappointed.

    National Chairman of the Sugarcane Farmers Association, Samuel Mensah, voiced his dissatisfaction at a press conference, criticizing the factory’s management for persuading them to expand their farms with the promise of buying their sugarcane, only to leave them without a market.

    He has requested a detailed update on the actual status of the factory. This discontent follows the announcement by Minister of Trade and Industry, K.T. Hammond, about the government’s plan to lease the Komenda Sugar Factory to West African Agro Limited, an Indian company, for a renewable term of 15 to 20 years.

    In a previous press briefing, the sugarcane out-growers questioned the source of the company’s sugarcane and whether the factory is currently operational. They also sought information on when the company and the ministry would engage with them regarding their products.

    The out-growers manage over 15,000 acres of sugarcane in regions including Shama, Wassa East and West, Cape Coast, and Gomoa East and West districts.

    Mr. Mensah noted that in 2022, the out-growers entered into a contract with the Komenda Sugar Factory management to supply all their harvested sugarcane.

    The Association claims that the company now plans to import raw sugar from Brazil, contradicting their agreement with the ministry. The contract also specified that if the company placed an order for harvesting but did not purchase the sugarcane, it would be liable to pay the full cost. The company has not adhered to this or other terms of the agreement.

    As a result, the out-growers are demanding that the company fulfill its commitments to resolve the situation.

  • Sugarcane farmers “cry out’ over unfair terms with management of Komenda Sugar factory

    Sugarcane farmers “cry out’ over unfair terms with management of Komenda Sugar factory

    Sugarcane out-growers in the Central Region have announced plans to protest, alleging “unfair treatment” by the management of the Komenda Sugar Factory and the Ministry of Trade and Industry.

    National Chairman of the Sugarcane Farmers Association, Samuel Mensah, voiced his dissatisfaction at a press conference, criticizing the factory’s management for persuading them to expand their farms with the promise of buying their sugarcane, only to leave them without a market.

    He has requested a detailed update on the actual status of the factory. This discontent follows the announcement by Minister of Trade and Industry, K.T. Hammond, about the government’s plan to lease the Komenda Sugar Factory to West African Agro Limited, an Indian company, for a renewable term of 15 to 20 years.

    In a previous press briefing, the sugarcane out-growers questioned the source of the company’s sugarcane and whether the factory is currently operational. They also sought information on when the company and the ministry would engage with them regarding their products.

    The out-growers manage over 15,000 acres of sugarcane in regions including Shama, Wassa East and West, Cape Coast, and Gomoa East and West districts.

    Mr. Mensah noted that in 2022, the out-growers entered into a contract with the Komenda Sugar Factory management to supply all their harvested sugarcane.

    The Association claims that the company now plans to import raw sugar from Brazil, contradicting their agreement with the ministry. The contract also specified that if the company placed an order for harvesting but did not purchase the sugarcane, it would be liable to pay the full cost. The company has not adhered to this or other terms of the agreement.

    As a result, the out-growers are demanding that the company fulfill its commitments to resolve the situation.

  • Any investment in Komenda Sugar Factory would be waste of resources – Kyei-Mensah-Bonsu

    Any investment in Komenda Sugar Factory would be waste of resources – Kyei-Mensah-Bonsu

    Former Majority Leader and Suame MP, Osei Kyei-Mensah-Bonsu, has criticized any potential state investment in the Komenda sugar factory as a wasteful expenditure.

    He highlighted the severe operational issues facing the factory, noting the substantial loss of land originally designated for the project.

    “When the Komenda sugar factory was operational, about 20% of lands at the site is gone, the chiefs have taken over, leaving only about 75%”, he explained.

    Osei Kyei-Mensah-Bonsu noted that the out-growers who once supplied the factory have since transformed their lands into palm plantations, further decreasing the amount of available land.

    “When the factory came to a standstill, all the out-growers converted their lands into palm plantations, so the small land left cannot feed the factory”.

    In an interview with Kojo Marfo on AbusuaNkommo at ABUSUA 96.5 FM, Osei Kyei-Mensah-Bonsu mentioned that the factory’s dependence on irrigation water from River Pra is problematic because illegal mining has severely damaged the water sources.

    “If you go anywhere, they grow sugarcane, you will need irrigation water to feed the farms. When the factory was operational, they drew irrigation water from River Pra along the Cape Coast to Takoradi road.

    “What water are we going to use for this work? The water has been polluted by illegal mining. Are we going to make the water clean before we use it?”, he asked.

    Hon Osei Kyei-Mensah-Bonsu stressed that the pollution from illegal mining would necessitate water purification before it could be used, significantly increasing the project’s costs.

    He insisted “because of galamsey all the water bodies have been destroyed, and you need to purify it.”

    “There’s nowhere in the world where irrigation water is purified before you. Even if you do that, it will bring another cost”, he stressed.

    He also voiced serious concerns about the contamination of the Pra River, which is the factory’s water source, as a result of illegal mining activities.

    “The most dangerous thing is that all fishes in the Pra River are all dead because of poisonous chemicals in the river.

    “Even if you are able to purify the water at that huge cost for irrigation, the poisons which have killed the fishes are still in the water and will feed into the sugarcane”, Hon Osei Kyei Mensah stressed.

    He also noted that the existence of the Sugar Factory poses a significant threat to public health as the sugar produced would likely be deemed unwholesome by the Food and Drugs Authority.

    “When you’re done producing, the Food and Drugs Authority will come and tell you the sugar is not wholesome. Does it make sense to go ahead with this?”.

    Osei Kyei Mensah Bonsu clarified that his comments represent his personal opinion and not the stance of the government stating “I am not speaking for the government, but for myself”.

    The former Majority Leader noted that this is not the first instance he has voiced doubts about the project. He remembered having cautioned about its potential failure when the factory was first launched under the NDC administration.

    In related news, Minister for Trade and Industry KT Hammond has revealed that an Indian company, which is set to lease the Komenda Sugar Factory, will pay the government a minimum of $1 million annually in rent.

  • Komenda Sugar factory won’t be leased if deal is shady – Mahama warns investor

    Komenda Sugar factory won’t be leased if deal is shady – Mahama warns investor

    The 2024 flagbearer of the National Democratic Congress (NDC), John Dramani Mahama, has issued a stern warning to the prospective buyer of the Komenda Sugar Factory, cautioning against any shady deals with the current government.

    His remarks follow the announcement by Trade and Industry Minister Kobina Tahir Hammond, who revealed that the government intends to lease the factory to West African Agro Limited, an India-based company, for a renewable term of 15 to 20 years.

    During a media briefing in the Volta Region, Mahama expressed deep concerns over the lack of transparency surrounding the transaction, emphasizing that the Komenda Sugar Factory is a national asset and should be handled with openness.

    “I have read about the hurry to lease the Komenda Sugar Factory to an investor. The thing about this government is, they are not transparent in anything they do, so I am warning the investor. I hope he’s gone through a transparent procurement process,” Mahama said.

    He further stressed that any deal made without transparency would not be recognized by an NDC government if they return to power.

    “Buyer, beware, whoever that investor is, he should be very careful because if the process is not transparent, we are not willing to abide by any transfer of the facility,” Mahama cautioned.

    Calling for a fair and open process, Mahama advocated for selecting the best investor to partner with the government in running the factory.

    “We must open it up and get the best investor to come and partner with the government to run the factory. So whoever it is, I am sending you a note of caution—I haven’t seen any transparent process in the leasing out of the factory,” he said.

    He reiterated that his future government would not cooperate if the current deal was discovered to be an “under the table transaction.”

    “If my government comes into office and we find out that it was some ‘under the table transaction,’ we will not be very cooperative in that regard. And so that is a warning,” Mahama declared.

    The Komenda Sugar Factory, which was inaugurated by Mahama in May 2016 at a cost of $35 million with funding from the Indian EXIM Bank, was intended to boost sugar production and create thousands of jobs. However, the factory’s operations stalled due to numerous challenges shortly after its commissioning, leading to its decline.

    In November 2019, the government signed a partnership agreement with Park Agrotech Ghana Limited, a Ghanaian-Indian firm, to inject $28 million into the project in an attempt to revive the factory. Despite this, concerns over the current leasing arrangement remain, with Mahama firmly asserting that the NDC would not tolerate any lack of transparency in the process.

  • Komenda Sugar factory demo to happen in Accra on Aug. 13

    Komenda Sugar factory demo to happen in Accra on Aug. 13

    The Concerned Citizens of the Komenda Traditional Area have announced that their planned protest against the lease of the Komenda Sugar Factory to an Indian firm will now be held in Accra on Tuesday, August 13, 2024, instead of Komenda.

    The protest, initially set to take place in Komenda, has been relocated to the capital to “amplify our voices, escalate our demands, and ensure that our concerns receive the attention they deserve at the highest levels of government,” the group stated in a release dated Sunday, August 11, 2024.

    The protesters are demanding the reversal of the lease agreement, insisting that the factory should return to its original purpose of processing locally-grown sugarcane rather than importing raw sugar.

    They argue that the lease was finalized without proper adherence to procedures and lacked sufficient consultation with key stakeholders.

    The group is currently coordinating with relevant authorities to finalize the details of the demonstration in Accra, which they believe will “galvanize support, foster greater solidarity, and ultimately contribute to a more effective and impactful advocacy campaign.”

    Read below the statement

    FOR IMMEDIATE RELEASE
    CALL TO ACTION
    As Concerned Citizens of Komenda Traditional Area, we welcome investment agreements, including those with foreign investors that benefit local stakeholders and protect the interests of local sugarcane outgrower farmers, with government assurance that farmers’ concerns will be addressed and their benefits ensured.

    We are compelled to express our deep concern and disappointment regarding the government’s handling of investment agreements, particularly the lack of transparency and consultation with local stakeholders.

    Commitments have been made to introduce new sugarcane varieties, develop new farmland, and support outgrowers, which we have sought clarification on directly with investor representatives. However, we remain vigilant and demand direct government assurance and transparency to guarantee these commitments and ensure local sugarcane farmers benefit equitably.

    DEMONSTRATION UPDATE

    Following careful consideration and consultation with stakeholders, we have resolved to relocate our demonstration from Komenda to Accra. This strategic decision aims to amplify our voices, escalate our demands, and ensure that our concerns receive the attention they deserve at the highest level of government.

    A new date for the demonstration will be announced shortly, pending further engagement with relevant stakeholders and authorities. We are confident that this move will galvanize support, foster greater solidarity, and ultimately contribute to a more effective and impactful advocacy campaign.

  • You have just 7 days to engage us – Komenda sugarcane farmers to govt over factory lease

    You have just 7 days to engage us – Komenda sugarcane farmers to govt over factory lease

    Sugarcane out-growers have issued a one-week ultimatum to the government, demanding a meeting to clarify plans for procuring their produce for the Komenda Sugar Factory.

    National Chairman Samuel Mensah, along with other national executives, voiced their dissatisfaction at an emergency press conference, condemning the decision to import semi-refined sugar without consulting them first.

    The out-growers have urged the Minister for Trade and Industry to justify the decision and outline how the government plans to buy their sugar cane to supplement the imported semi-refined sugar.

    This follows Minister K.T. Hammond’s announcement that the government plans to lease the Komenda Sugar Factory to West African Agro Limited, an Indian company, for a renewable term of 15 to 20 years.

    The out-growers threatened to mobilize their members against the ruling government if their demands are not met.

    Nana Andoh VI, the group’s secretary, emphasized that the out-growers expected the government to purchase the locally available sugar cane and only then consider importing semi-refined sugar to complement the local supply.

    They also expressed their disappointment with the government’s lack of support for farmers under the Planting for Food policy, criticizing the failure to promote large-scale sugar cane plantations to sustain the factory.

    According to Nana Andoh VI, the government’s actions have let down the entire country.

  • You have one week to engage us on Komenda Sugar Factory lease – Farmers to govt

    You have one week to engage us on Komenda Sugar Factory lease – Farmers to govt

    The Komenda Sugar Factory, which has been inactive and deteriorating for six years, has not produced any sugar since its launch.

    Sugar cane out-growers have given the government a one-week deadline to discuss plans for buying their sugar cane for the Komenda factory.

    In a recent emergency press conference, National Chairman Samuel Mensah and other executives expressed their strong objections to the government’s decision to import semi-refined sugar for the factory without prior consultation.

    They are demanding that the Minister for Trade and Industry provide details on how the government plans to purchase local sugar cane and integrate it with the imported sugar.

    This comes after Minister K.T. Hammond revealed that the government intends to lease the Komenda Sugar Factory to West African Agro Limited, an Indian company, for a renewable term of 15 to 20 years.

    The out-growers have warned that if their concerns are not addressed, they will organize their members to campaign against the current administration.

    Nana Andoh VI, the group’s Secretary, criticized the government for not supporting the purchase of existing sugar cane and for failing to promote large-scale sugar cane plantations under the Planting for Food policy.

    He stated that the government’s actions represent a significant failure for the country.

  • Residents of Komenda to stage protest over Sugar Factory lease to Indian investors on August 13

    Residents of Komenda to stage protest over Sugar Factory lease to Indian investors on August 13

    Concerned Citizens of Komenda Traditional Area have informed the Ghana Police Service about their upcoming demonstration on Tuesday, August 13, 2024.

    This protest aims to demand the annulment of the lease agreement for the Komenda Sugar Factory with an Indian company.

    In a press release, the group highlighted issues such as non-compliance with procedural requirements and lack of stakeholder engagement as significant concerns.

    They also urged the government to halt the importation of raw sugar and restore the factory’s original purpose of using local sugarcane from outgrowers.

    Samuel Awudzah, the group’s convenor, stated that around 2,000 participants from the Komenda Traditional Area and nearby regions are expected to join the demonstration.

    Awudzah noted that the protest adheres to Section 1, Clause 1 of the Public Order Act, 1994 (Act 491), which requires notifying the police at least five days before any public event.

    Meanwhile, Trade and Industry Minister Kobina Tahir Hammond announced on Wednesday, July 31, 2024, that the government plans to lease the Komenda Sugar Factory to Indian investors for approximately 20 years to revive the defunct facility.

    He added that the lease agreement could be renewed once the contract is finalized.

    K.T. Hammond revealed that the government had spent GH¢45 million to keep the factory operational.

    The Komenda Sugar Factory, which was handed over to a strategic investor in November 2019 after a three-and-a-half-year hiatus, has been idle since May 2016.

    The $35 million factory was inaugurated by former president John Dramani Mahama, but it ceased operations due to multiple issues, including an insufficient supply of sugarcane in the area, as stated by President Nana Addo Dankwa Akufo-Addo in September 2018.

  • Komenda Sugar Factory lease will generate over $1m a year for Ghana – KT Hammond

    Komenda Sugar Factory lease will generate over $1m a year for Ghana – KT Hammond

    The Minister of Trade and Industry, Kobina Tahiru Hammond, has clarified payment concerns regarding the lease of the Komenda Sugar Factory to West Africa Agro Limited, an Indian-based firm.

    Hammond explained that Ghana will not pay the company; instead, the country will receive an annual rent payment of over one million dollars.

    His comments come in response to Yusif Sulemana, the Ranking Member on the Trade and Industry Committee, who had raised concerns that Parliament was not informed of the decision and claimed that the company would be paid $50,000 monthly for management services.

    Speaking on Citi FM’s Eyewitness News, Hammond refuted these claims, stating that the company will pay Ghana a yearly rent, currently set at over one million dollars.

    He further elaborated that this payment would be made annually for the duration of the lease, with an option for the company to extend the lease if they choose to do so.

    “So at the commencement of the agreement to let them lease it, they would be paying us a yearly rent. The company will be paying us, I’ve said that it is over a million dollars. I’ve agreed on a figure which is, for now, a little more than one million dollars a year.”

    “They will pay us for the year that they’ll be leasing it. At the end of it, if they are still interested, they could extend the period that they leased and keep on paying us the year’s rent until they give it back to us.”

  • Parliament not informed about plans to lease Komenda Sugar Factory – Bole Bamboi MP alleges

    Parliament not informed about plans to lease Komenda Sugar Factory – Bole Bamboi MP alleges

    Ranking Member of Parliament’s Trade and Industry Committee and MP for Bole Bamboi, Yusif Sulemana, has expressed concerns over the government’s plan to lease the Komenda Sugar Factory to the Indian firm, West Africa Agro Limited, for up to 20 years.

    The factory is currently in the test phase before it begins full-scale production.

    Trade and Industry Minister Kobina Tahiru Hammond recently revealed that the government plans to lease the factory to West Africa Agro Limited for a period of 15 to 20 years, with options for renewal.

    According to the government, this lease aims to revive the factory’s operations and address domestic demand.

    The Komenda Sugar Development Company Limited, established in 1964, has struggled with operational issues and has paused production.

    Despite investments from the Indian Export-Import Bank and previous government support, the factory has not yet met its goals.

    In an interview with Citi FM, Mr. Sulemana highlighted that Parliament has not been briefed on this decision and called for Trade Minister K.T. Hammond to be summoned for clarification.

    With Parliament in recess, Mr. Sulemana plans to issue a statement questioning the Trade Minister about the lease arrangement.

  • Parliament is not privy to govt’s decision to lease Komenda Sugar Factory – MP

    Parliament is not privy to govt’s decision to lease Komenda Sugar Factory – MP

    The Ranking Member on the Trade and Industry Committee and MP for Bole Bamboi, Yusif Sulemana, has expressed significant concerns regarding the government’s possible plan to lease the Komenda Sugar Factory to the Indian company, West Africa Agro Limited, for a duration of 15 to 20 years.

    The factory is currently undergoing a test run in preparation for full production. During a recent visit, Trade and Industry Minister Kobina Tahiru Hammond announced that the government intends to lease the facility to West Africa Agro Limited, with an option for renewal, as part of an effort to revive its operations and meet domestic demand.

    The Komenda Sugar Development Company Limited, founded in 1964, has faced numerous challenges, including interruptions in production.

    Despite investments from the Indian Export-Import Bank and previous funding from the NDC government, the factory has not yet met its operational goals.

    In an interview with Citi FM, Mr Sulemana criticized the lack of disclosure to Parliament regarding this decision and called for Trade Minister K.T. Hammond to be summoned to address the issue.

    With Parliament currently in recess, Mr Sulemana plans to release a statement questioning the Trade Minister’s plans for the factory.

    He underscored that the factory’s goals remain unfulfilled under the current administration and stressed the need for Parliament to be informed about any decisions affecting its future.

  • Komenda residents threaten gov’t with demo over 20-year lease of Sugar Factory

    Komenda residents threaten gov’t with demo over 20-year lease of Sugar Factory

    Residents of Komenda in the Central Region have expressed their intention to stage a protest against the government’s plan to lease the Komenda Sugar Factory to a private company.

    The government proposes to lease the Komenda Sugar Development Company Limited to West Africa Agro Limited, an Indian-based firm, for a renewable term of 15 to 20 years.

    According to Trade and Industry Minister K.T. Hammond, this move is intended to revive the factory’s operations to meet domestic sugar demand.

    However, local residents are strongly opposing this plan.

    Samuel Awudzirato, Convenor for Concerned Residents of Komenda, has called on the government to reverse its decision, insisting that the factory should remain fully government-owned.

    He is concerned about the negative effects the lease could have on local farmers and the community.

    “But I can give you a hint, there will be a demonstration very soon. That I can assure you. We demand that the government doesn’t lease the factory to any entity. The factory is 100% owned by the government. We don’t want the factory to be leased to any company.

    “We want the factory to be reverted to the production of sugar, through sugar cane, and not just importing the raw sugar from India and refining it to white sugar.

    “That process only takes about 20% of the whole production, which means that we have taken out over 10,000 farmers from the whole value chain, which is going to cause serious problems. And so, we demand that they don’t give it to any entity and revert to the old system of crushing sugar cane to produce sugar,” he said.

    Mr Awudzirato emphasized the potential issues with the lease, noting that it could result in a shift from processing locally grown sugar cane to importing raw sugar from India for refinement.

    He argued that this would marginalize over 10,000 local farmers who depend on the factory.

    Additionally, the minority party in Parliament plans to summon Minister K.T. Hammond to discuss the issue further.

    The Komenda Sugar Factory, established in 1964, ceased operations for many years.

    In 2016, the previous NDC government secured a $35 million loan from the Indian Export-Import Bank and an additional $24 million investment to rehabilitate the factory.

    It is currently in the test run phase before full production begins, with the government’s proposed lease arrangement in the pipeline.

  • Ghana to earn nothing from products from Komenda Sugar Factory handed to Indian investors for 20 years

    Ghana to earn nothing from products from Komenda Sugar Factory handed to Indian investors for 20 years

    Ghana will not earn any profits from the sugar products produced at the Komenda Sugar Factory for the next two decades as the government has leased the facility to Indian investors.

    Minister of Trade and Industry Kobina Tahir Hammond announced this plan during a press briefing after touring the Komenda Sugar Factory on Wednesday, July 31, 2024. He clarified that while the factory remains fully owned by the Government of Ghana, the investors will manage the operations and make lease payments to the government.

    “The entire facility belongs to the Government of Ghana. We are leasing it out, and there’s a board in place to oversee its operations. The investors are simply in charge of managing it,” said K.T. Hammond.

    He emphasized, “We will not have any shares in the products they produce, but the company remains 100% Ghana-owned.”

    Discussing the lease duration for West Africa Agro-tech Limited, the Trade Minister mentioned, “I am considering a lease of 15 to 20 years, with an option for extension or renewal after the initial term.”

    Hammond also highlighted that the government had spent GH¢45 million to maintain the Komenda Sugar Factory. He noted that West Africa Agro-tech Limited, the investors, had brought in 1,000 tonnes of raw sugar for a test run to assess the production of white sugar.

    In November 2019, the Government of Ghana handed over control of the Komenda Sugar Factory to a strategic investor after a three-and-a-half-year closure. The $35 million factory, inaugurated by former President John Dramani Mahama, has been inactive since May 2016.

    President Nana Addo Dankwa Akufo-Addo, in September 2018, explained that the sale was necessitated by several issues, including a lack of sufficient sugarcane supply in the surrounding area.

  • Komenda Sugar Factory to be managed by Indian investors for 20 years – Trade Minister

    Komenda Sugar Factory to be managed by Indian investors for 20 years – Trade Minister

    To revive the defunct Komenda Sugar Factory in the Central Region, Minister of Trade and Industry Kobina Tahir Hammond announced the government’s plan to lease the facility to Indian investors for approximately 20 years.

    He mentioned that the lease agreement could be renewed once the contract is finalized.

    Speaking to journalists after touring the Komenda Sugar Factory on Wednesday, July 31, 2024, K.T. Hammond stated that the factory is entirely owned by the Government of Ghana, with the investors only managing the assets and making payments to the government.

    He clarified that the government does not hold any shares in the 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.

    In response to the question regarding the lease period to West Africa Agro-tech Limited, the trade minister stated, “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 mentioned that West Africa Agro-tech Limited, the investors in the Komenda sugar factory, imported 1,000 tonnes of raw sugar for a test run.

    This test was conducted to see if white sugar could be produced.

    The Government of Ghana transferred the Komenda Sugar Factory to a strategic investor in November 2019 after a three-and-a-half-year hiatus.

    The $35 million factory, which was inaugurated under former president John Dramani Mahama, has been non-operational since May 2016.

    In September 2018, President Nana Addo Dankwa Akufo-Addo revealed that the factory’s sale was due to several issues, including a lack of sufficient sugarcane in the surrounding area.

    Watch the video below:

  • Help us win minority’s support for tax waiver on semi-processed sugar imports – Oppong-Nkrumah pleads with Komenda Chiefs

    Help us win minority’s support for tax waiver on semi-processed sugar imports – Oppong-Nkrumah pleads with Komenda Chiefs

    During his visit to the Komenda sugar factory, Minister of Works and Housing, Kojo Oppong Nkrumah met with local chiefs.

    He assured them that the government is committed to revitalizing the factory.

    Nkrumah emphasized that granting tax waivers is crucial for the success of the Komenda sugar factory project.

    He urged the chiefs to persuade the Minority to support these tax waivers.

    “We have not forgotten the Komenda sugar factory. We are working towards reviving the company. We plead with you to convince the NDC to grant tax waivers to support the project,” Kojo Oppong Nkrumah stated.

    Watch video below:

  • Rodents, reptiles, others find new home in the about GHC 28m Komenda Sugar Factory site

    Rodents, reptiles, others find new home in the about GHC 28m Komenda Sugar Factory site

    Komenda Sugar Factory premises have become a habitat for grasscutters and a breeding ground for reptiles, as neglect and abandonment have taken their toll on the once-promising facility.

    Constructed during the tenure of NDC’s John Dramani Mahama, the factory, which was on the brink of completion, now languishes in decay amidst overgrown vegetation.

    Initially projected to provide employment for over 700 unemployed youth in Komenda and neighbouring areas, the factory now stands as a symbol of broken promises and unfulfilled potential.

    EIB Network’s Central Regional Correspondent, Yaw Boagyan, visited the factory and witnessed firsthand the grim state of affairs. Machinery lies rusted and broken, while the factory’s roofing sheets are torn, further exacerbating its deterioration.

    The sugarcane fields intended to feed the factory now lie neglected, overrun by weeds and scavenged by local residents for sustenance.

    Disillusionment prevails among the community, with residents expressing deep disappointment in the Nana Addo Dankwa Akufo-Addo government for its failure to revive the factory.

    They lament the missed opportunity for economic empowerment and vow to withhold their support from the NPP in the upcoming general election, citing their dashed hopes for a better future.

    Residents of Komenda express deep disappointment in former Trade Minister, Alan Kyerematen, who hails from the area, for his perceived failure to operationalize the abandoned sugar factory during his tenure.

    In a bizarre turn of events, the factory was briefly opened for operation in 2023 during a visit by Alan Kyerematen, only to be shut down again just three days later, leaving the community perplexed and frustrated.

    Faced with the prospect of continued neglect, residents voice their intention to throw their support behind the NDC in the upcoming elections, citing the party’s role in initiating the factory’s establishment.

    They express hope that the NDC’s vice-presidential candidate, Prof Naana Jane Opoku-Agyemang, who hails from Komenda, will champion efforts to complete and operationalize the facility.

    While the government has hinted at negotiations to revive the factory, residents also highlight the urgent need for improved infrastructure, particularly the deplorable state of the area’s roads, which further compounds their plight.

  • I’ll revive ‘dead’ Komenda Sugar Factory when I return – Mahama

    I’ll revive ‘dead’ Komenda Sugar Factory when I return – Mahama

    Former President John Dramani Mahama has expressed a commitment to revive the Komenda Sugar Factory as part of his industrialization agenda.

    He emphasized that the operationalization of the factory has the potential to generate around 7,300 direct and indirect jobs while also contributing to a reduction in sugar imports.

    “The factory was rebirthed by the National Democratic Congress (NDC) and has the master plan to revive it when the party takes over the reins of government in 2025,” he said.

    The Presidential candidate of the NDC gave the assurance on Friday when he paid a courtesy call on the Oguaa Traditional Council to begin his two-day working visit to the Central Region. 

    The Komenda Sugar Factory, located in the Komenda-Edina-Eguafo-Abirem (KEEA) Municipality of the Central Region, was commissioned in 2016 but faced operational challenges, leading to its closure.

    The $35-million factory, built from an Indian Exim Bank facility, had not worked since its commissioning.

    Mahama, while addressing economic issues, asserted that his party, the National Democratic Congress (NDC), is better equipped to manage Ghana’s economy. He attributed the current economic challenges to the mismanagement by the current government, characterizing the state as near collapse.

    Mahama outlined a comprehensive 24-hour policy that he plans to implement if given the mandate to lead the country again. The policy aims to stabilize the national currency, enhance reserves, reduce inflation and interest rates, create employment opportunities, improve livelihoods, and boost both import substitution and the export drive.

    In addressing corruption, Mahama pledged to create a conducive environment for anti-corruption institutions to effectively combat corrupt practices

  • Komenda sugar factory will bounce back in next NDC govt – Ricketts Hagan

    Komenda sugar factory will bounce back in next NDC govt – Ricketts Hagan

    Former Deputy Minister for Finance, Kwaku Ricketts Hagan, has asserted that if the National Democratic Congress (NDC) comes into power in 2024, they will make sure the dormant Komenda Sugar Factory becomes operational in under a year.

    During an appearance on Top Radio’s Final Point program, Ricketts Hagan emphasized the NDC’s track record of fulfilling promises and expressed the party’s commitment to ensuring the full functionality of the factory, originally built during a previous NDC administration.

    “I can tell you that on authority,” he stated when asked by the host Kwabena Owusu Agyemang whether the factory will be revived if the NDC wins power.

    Speaking about the 24-hour economy policy put forth by the NDC presidential candidate, former President John Dramani Mahama, the former deputy minister pointed out that the Komenda Sugar Factory will play a significant role in ensuring the policy’s success and spurring economic growth.

    “John Mahama has done it before so if we say that John Mahama can operationalise Komenda Sugar Factory and build more Sugar factories we know what we are talking about,” he stated.

  • Komenda Sugar Factory has become a burden – Trade Minister

    Komenda Sugar Factory has become a burden – Trade Minister

    Minister for Trade and Industry, Kobina Tahir Hammond, expressed concerns that the Komenda Sugar Factory has become a burden on the country.

    He highlighted that aside from the factory not being adequately established, the company responsible for its initial construction has now come back demanding an additional US$7.5 million, despite the previous government already spending US$34.5 million on the project.

    “This Komeda Sugar Factory has been an albatross created by… (he pointed at the minority without saying a word),” KT Hammond said.

    During a parliamentary session on Thursday, July 20, 2023, Minister for Trade and Industry, Kobina Tahir Hammond, responded to questions raised by Member of Parliament for Bole/Bamboi, Yussif Sulemana, regarding the Komenda Sugar Factory. The inquiry was made on behalf of Mr. Sulemana by Alhassan Suhuyini, the MP for Tamale North.

    The main question posed was about the termination of the agreement with Park Agrotech Ghana Limited, the strategic investor chosen for the factory, which had been approved by Cabinet in June 2019 as the preferred investor for the Komenda Sugar Development Company Limited.

    In his response, the minister clarified that there was never an agreement in place to be terminated from the beginning. He explained that certain conditions precedent were set, which the company failed to meet, resulting in the inability to establish a contract with the government. Therefore, the termination was a consequence of the company’s inability to fulfill these conditions, rather than a cancellation.

    “Mr. Speaker, there was a long delay in concluding the negotiations between the lawyers of Park Agrotech and the Transaction adviser PWC [Price Water House], in respect of the conditions precedent for the lease agreement, under the agreement between Park Agrotech and Komenda Sugar Development Company to come into force,” KT said.

    He said COVID-19 further delayed the company from bringing its partners abroad to access the machine and do the necessary maintenance to restart production.

    He added that the ministry, after painstakingly working with the Transaction Adviser on the various conditions precedent, issued a directive that August 31, 2021 would be the final deadline, which the investor could not meet.

    According to him, the directive was that if no agreement had been reached at that point, “the transaction process was to be terminated. And the management of the company reverted to the board. By the close of business on August 31, 2021 no agreement had been reached between PWC and Park Agrotech and the transaction process was terminated.”

    Pandora’s box

    The Minister, after the written answer, had a follow-up from the Bole MP, who, while KT was answering the main question, entered the Chamber.

    He asked why the government mobilised the chiefs and introduced the company to “them that these were the people coming to start work,” if there was no agreement.

    In his response, the minister said that considering the state of the company, “obviously” the chiefs and the people would be interested to know that the company was coming to work in the factory. He cautioned his colleagues on the other side against the move to blame the ruling government, saying that going on that tangent could only open the Pandora’s Box and “you will get extremely uncomfortable.”

    In giving an answer to the follow-up question, the minister gave the history of the factory, saying the then NDC government in an attempt to show the world that the company was operational, “a lot of things were rushed through.”

    He cited that “when eventually other engineers went there, it was realised that the structure of the plant was so bad [that] no manufacturing activity could take place.”

    Cost incurred

    The MP for Bole/Bamboi asked another follow-up question about whether the ruling government had incurred any costs with regards to overhauling, retooling and maintenance, which the minister mentioned, but the minister said he did not have any information about that.

    “I do recall that the company that originally undertook the construction of the company has come back to ask for about US$7.5 million. So let me check if some more money has been expended. But I don’t have the information now,” he stated.

    The MP then asked about the economic justification for importing semi-processed sugar to be processed by the Komenda sugar factory.

    The minister in his response said the company does not import semi-processed sugar, adding that the company is to produce sugar from start to finish to deal with the importation of sugar.

    “The company does not import any such material. The Komenda Sugar Manufacturing Company has undergone a comprehensive overhaul, retooling and maintenance to ensure that the factory will have full utilization of its production capacity, in respect of cane milling and refining of raw sugar to substitute imports,” he answered.

  • It’s a shame government is importing sugar when the country has a sugar factory – NDC

    It’s a shame government is importing sugar when the country has a sugar factory – NDC

    The Member of Parliament (MP) representing Bole Bamboi, Yussif Sulemana, has accused the government of causing financial losses to the state through its decision to import semi-processed sugar for refining at the Komenda Sugar Factory in the Central Region.

    In 2016, Parliament had approved a substantial amount of $24 million for the cultivation of sugarcane, with the intention of providing sufficient raw materials for the factory. However, the government failed to utilize these funds effectively, leading to the factory becoming non-functional.

    After the Minister for Trade and Industry, KT Hammond, addressed questions concerning the factory in Parliament, Sulemana spoke to journalists, expressing his concerns about the missed opportunities for the nation’s youth due to the government’s inaction.

    He pointed out that the government’s choice to import semi-processed sugar instead of supporting local production is detrimental to the country’s economy. The approved facility’s funds were intended to be drawn down for the benefit of sugarcane farmers, but the government allegedly refused to do so, resulting in a lack of necessary resources for cultivation.

    By relying on imports rather than promoting domestic production, the government has denied citizens potential livelihoods and the employment opportunities that the functional factory could have created for them. Sulemana emphasized that this decision adversely affects the people and their aspirations for better job prospects and economic growth.

    “Today, you are importing semi-processed sugar. Isn’t that a loss for us? Parliament approved the facility and asked that you should draw down the funds. You arrogantly refused to draw down the money. Today, we are unable to give the needed resources for the farmers to be able to cultivate the sugarcane,” he said.

    “So, what you are now doing is to import semi-processed sugar. What you are doing is denying the people a source of livelihood. What you are doing is that you are denying people the needed jobs that we had wanted to create for them,” he underscored.

  • I said reviving Komenda Sugar factory was a waste but no one understood me – Majority leader

    I said reviving Komenda Sugar factory was a waste but no one understood me – Majority leader

    The majority leader and minister of parliamentary affairs, Osei Kyei-Mensah-Bonsu, has provided an explanation for why previous administrations have been unable to put the Komenda Sugar Factory into action.

    According to him, the main challenge of making the Komenda Sugar Factory work is that there are no longer arable lands in the Komenda area to produce the sugarcane needed to feed the factory because of human settlement and the devastation done to water bodies in the area by the activities of illegal small-scale miners (galamseyers).

    He explained that because the main source of water in the area, the River Pra, has been polluted by galamsey activities, the water from it has to be first purified before it can be used to cultivate the sugarcane needed for the factory, which comes at a very huge cost.

    Kyei-Mensah-Bonsu, who made these remarks in an Oyerepa TV interview, said that he warned that it would be impossible to revive the factory during the era of the late former President John Evans Atta Mills, but he was ignored.

    “During the era of President Mills, I raised an issue about the feasibility of the Komenda Sugar Factory in parliament, but some people did not understand me because they had a sentimental attachment to the revival of the factory due to it being established by Kwame Nkrumah.

    “I said reviving the factory will not work and that we should look for an alternative in order not to waste our money, but people did not understand,” he said in Twi.

    Background

    Though the erstwhile John Dramani Mahama administration recommissioned the factory on May 30, 2016, in a bid to get it functioning once again and offer employment for the youth, the move hit a snag as the Akufo-Addo-led government took office shortly thereafter in 2017.

    The Komenda Sugar Factory was expected to create some 7,300 direct and indirect jobs at full operational capacity. The factory is said to be able to crush 1,250 metric tons of sugar cane daily.

    The sugar-producing factory was first established in 1964 by Dr. Kwame Nkrumah but became defunct over the years due to technical difficulties and setbacks.

    The birth of the factory was based on the premise of producing sugar locally to reduce importation and for commercial purposes.

  • Komenda Sugar Factory did not attain operational status under NDC Trade Ministry

    The Komenda Sugar Factory was not finished and put into operation during the previous John Mahama administration, contrary to assertions made by the Ministry of Trade and Industry.

    This comes after the opposition New Patriotic Party was accused by the opposition National Democratic Congress of failing to run the $36 million plant that was left to them.

    Prince Boakye Boateng, the Trade Ministry’s public relations officer, responded to the allegations in an appearance on Top FM by stating that the Komenda Sugar Factory had not yet become operational under the previous administration.

    He also gave some information regarding the president’s recent visit to the factory, which was intended to let him know how the work was going.

    “Nana Addo Dankwa Akufo-Addo did not attend the inauguration of Komenda Sugar Factory.
    The president went to see how things were going at work.
    The Komenda Sugar Factory is not yet open for business.
    The factory was created and taken to a certain point by the previous administration, but in reality, it was not running.
    A few components weren’t even installed, he said.

    He continued, “That was the extent to which the work on the factory had reached, but it was not operational. But now, by the grace of God, the parts that were yet to be installed have been installed.”

    The PRO for the ministry stressed that it would be an act of peddling falsehood should anyone claim that the factory was completed for operationalization by the erstwhile NDC.

    “Anyone that claims Komenda Sugar Factory was completed by the NDC is peddling falsehood,” he stressed.

    Meanwhile, during a recent working visit to the factory, President Akufo-Addo expressed hope that the Komenda Sugar Factory, barring any unforeseen circumstances, will be commissioned for operation by end of this year.

    The factory is said to have undergone two successful test runs ahead of its inauguration later in the year.

    Officials at the factory said 12.5 metric tonnes of unrefined brown sugar have been produced from the two successful test runs.

    Background

    Though the erstwhile John Mahama administration recommissioned the factory on May 30, 2016, in a bid to get it functioning once again and offer employment for the youth, the move hit a snag as the Akufo-Addo-led government took office shortly in 2017.

    The Komenda Sugar Factory was expected to create some 7,300 direct and indirect jobs at full operational capacity. The factory is said to be able to crush 1,250 tonnes of sugar cane daily.

    The sugar-producing factory was first established in 1964 by Dr Kwame Nkrumah but became defunct over the years due to technical difficulties and setbacks.

    The birth of the factory was based on the premise of producing sugar locally to reduce importation and for commercial purposes.

  • Komenda Sugar Factory will be commissioned this year Akufo-Addo assures

    President Akufo-Addo has stated that the Komenda Sugar Factory will be commissioned by the end of 2022.

    Addressing a congregation during his two-day tour of the Central Region on Saturday, the President accused the National Democratic Congress (NDC) of neglecting the project.

    He mentioned that his government is committed to reviving the factory and creating the needed employment. 

    “The factory has been on my heart. It is left with a bit. Great works are going on there. The commissioning will come in a little while.”

    The $36.5 million facility which was inaugurated by former  President John Mahama in May 2016 stopped operations days after its inception.

    Backing the President, the Former Director General of the State Interest and Governance Authority Stephen Asamoah Boateng says works on the Komenda Sugar Factory was 95 percent completed.

    He explained that plans are in place to ensure that raw materials are made available to feed the factory.

    According to the former member of Parliament for Mfantsiman, the state in which they met the old factory has been changed to an ultramodern one, adding that the story of the factory must be told since it is a good one.

    “These are very new machines. These are not the old ones we are continuing with… I am very happy that the NPP government led by Nana Akufo-Addo promised to deliver, and he has done it.”

     

  • Komenda sugar factory to begin processing unrefined sugar – MCE of Edina Eguafo Abrem

    Solomon Ebo Appiah, the Municipal Chief Executive for Komenda Edina Eguafo Abrem has revealed that the Komenda Sugar Factory will soon begin the processing of unrefined sugar.

    After the commissioning of the factory nearly six years ago, the factory, according to Mr Ebo Appia has now been revamped to revive the local production of sugar.

    The commencement of the factory, he says will generate the needed jobs for residents in the regions and sugar cane growers.

    “This is no political talk. I will not play politics with the people I serve, there are a lot of works going on at the factory right now.

    “A three million litre reservoir has been constructed. The roof of the factory has been changed, and a raw sugar warehouse has been built to store raw unrefined sugar for the processing,” he added.

    The MCE further stated that currently, the country is not producing the right quantity of sugarcane suitable for production, therefore management of the Sugar factory will import the molasses to be refined.

    Background

    The $35 million Komenda Sugar factory was built from an Indian Exim Bank facility and inaugurated by the former president John Dramani Mahama.

    The factory was one of the major political issues in the Central Region during the 2016 and 2020 elections.

    According to the current government, the NDC failed to establish a proper contact with investors before going ahead to build the Komenda Sugar Factory.

    Meanwhile, the factory has not worked since its commissioning in 2016.
    In February this year, President Akufo-Addo gave his assurance that the Komenda Sugar Factory will start operations in April.

    He projected that the company after it commencement will inject $28 million into the factory between 2020 and 2023.
    Out of the amount, $11 million was to go into sugarcane cultivation; $6 million to upgrade plant and machinery, and $11 million as working capital to bring the ailing factory back on its feet.

    Source: The Independent Ghana

     

  • How a Technical Audit revealed Komenda sugar factory never completed a test run

    A Technical Audit report issued by the Ministry of Trade and Industry has revealed a number of circumstances that led to the non-functionality of the Komenda Sugar factory.

    The sugar-producing factory, established in 1964, has become defunct due to technical difficulties and setbacks. The birth of the factory was based on the premise of producing sugar locally to reduce importation but that has not yielded results since its recommissioning in 2016.

    The Audit Team made up of experts from academia, industry, and independent sugarcane consultants revealed that a test run on the facility was never completed before the Komenda Sugar Factory was re-commissioned in May 2016.

    This was due to the unavailability of sufficient sugarcane for the test run.

    The findings which was dated September 2017 and October 10, 2017, also showed the factory never produced any sugar after it was reconstructed.

    It further showed that it was not positioned to produce the required refined sulphurless white sugar due to the absence of 35 component parts/units, which were not fully installed before the test run including for melt clarification, vertical crystallizers, molasses weighing system, bagasse compressor and a dosing system.

    Meanwhile, excerpts of the executive summary of the technical audit report shared by Abdul Malik Kweku Baako on his Facebook timeline stated that the reconstruction of the factory which was to be completed in October 2016, was completed in March 2016 seven months earlier than the expected date of completion.

    The report stated, after the factory was completed in March 2016, “the testing of the sugar plant was carried out and sugar was produced successfully. However, full load production, for its installed capacity could not be carried out due to inadequate supplies of sugarcane (pg.2 completion report, May 2017) …”

    “The factory has only been test-run during its commissioning. The test run did not go through the entire process to produce sulphurless white sugar as stipulated in the contract as some systems were bypassed and others were not installed,” the report continued.

    “It took 17 days to crush the sugarcane to produce the raw sugar. This was due to a number of challenges the operators encountered during the test run. It has to be noted that, the sugar produced was not white refined sugar (at 50 ICUMSA) as required but semi-processed raw sugar having molasses (which is not edible),” it added.

    The Audit Report further stated, the total fenced area earmarked for the nursery development was 63.4 Ha (158 acres). The cropped area was 49.9 Ha and out of that, 0.5. Ha was saline. “The remaining land area is covered by the roads in the nursery. Some of the plants showed stunted growth and empty patches.”

    “There was a wide variation in the height of sugarcane on the same plot. The empty spaces were not filled thus reducing the expected plant population per hectare. However, other parts of the nursery showed strong and vigorous growth. It should be noted that none of the sugarcanes in the plots can be planted as cane this year since the planting date (May-June-July) is already past.”

    “About 97% (48.8 Ha) of the cropped area is composed of the B41227 variety which is prevalent in the Komenda area. Investigations show that no variety selection was conducted since a period of 7-8 months was given as the duration for the nursery operation which was not enough for proper crop selection,” the report stressed.

    During his ongoing tour of the Central Region, President Akufo-Addo revealed that a preliminary assessment conducted on the value of the factory showed it had been overvalued to the tune of some US$12 million.

    Source: www.ghanaweb.com

  • Heres how government plans to revive Komenda Sugar factory

    President Nana Addo Dankwa Akufo-Addo has hinted he expects the Komenda Sugar Factory to commence commercial production in the first quarter of 2022.

    The sugar-producing factory, established in 1964, has become defunct due to technical difficulties and setbacks. The birth of the factory was based on the premise of producing sugar locally to reduce importation but that has not yielded results since its recommissioning in 2016.

    During an interview on Eagle FM in the central region, as part of a working visit to the area, President Akufo-Addo revealed that Park Agrotech Ghana Limited had been selected as the preferred strategic investor for the Komenda Sugar Factory, adding that their recommendation has been approved by Cabinet.

    “However, negotiations between the Transaction Advisor (Price Water House) and the Strategic Investor have been unduly prolonged due to several demands made by the Strategic Investor, as well as the effects of the emergence of COVID-19 pandemic, which restricted consultations between the investor and the Transaction Advisor,” the presidency wrote on its website outlining revival plans for the factory.

    “With the delays in concluding negotiations between the Transaction Advisor and the Strategic Investor, the Ministry of Trade and Industry, after given the required notice, terminated the negotiations with the Strategic Investor on 1st September 2021 for their failure to fulfil the conditions precedent to the offer made to them,” it added.

    Meanwhile, President Akufo-Addo has said the services of the Technical Partner with expertise in the sugar industry has been engaged to manage the technical operations of the factory.

    As part of efforts to rope in local content personnel to revive the factory, traditional authorities in Komenda and the adjoining districts have been engaged to acquire large tracts of land for sugarcane plantations.

    Trade Ministry Technical Audit

    A Technical Audit report issued by the Ministry of Trade and Industry has revealed several circumstances that led to the non-functionality of the Komenda Sugar factory.

    The Audit Team made up of experts from academia, industry, and independent sugarcane consultants revealed that a test runs on the facility were never completed before the Komenda Sugar Factory was re-commissioned in May 2016.

    This was due to the unavailability of sufficient sugarcane for the test run.

    The findings, which was dated September 2017 and October 10, 2017, also showed the factory never produced any sugar after it was reconstructed.

    Excerpts of the executive summary of the technical audit report shared by Abdul Malik Kweku Baako on his Facebook timeline stated that the reconstruction of the factory which was to be completed in October 2016, was completed in March 2016 seven months earlier than the expected date of completion.

    Source: www.ghanaweb.com

  • Photos: The abandoned Komenda Sugar Factory

    JoyNews has released a documentary produced by Joojo Cobinah focusing on the abandoned Komenda sugar factory which has been rusting away since operations halted.

    The old factory, built in 1964, became defunct about 30 years ago due to technical difficulties and mismanagement. 

    “He (President Nana Akufo-Addo) promised that he will fix the factory. But he has not fulfilled that promise. So we are disappointed”, a resident of Komenda said.

    It may sound basic, but Ghana had a dream to start producing sugar locally to reduce the importation of sugar. Hence, the rebirth of the Komenda Sugar factory.

    In all, 7,300 jobs were expected to be created when the factory runs fully.

    The factory, which can crush 1250 tonnes of sugar cane daily, was expected to put a permanent smile on the faces of the farmers, who would directly feed the factory with raw materials and get paid.

    On May 30, 2016, the factory restored the hope of unemployed youth who dreamt of finally gaining employment.

    That dream has faded away after 5 years.

    Photos: The abandoned Komenda Sugar Factory
    Photos: The abandoned Komenda Sugar Factory
    Photos: The abandoned Komenda Sugar Factory
    Photos: The abandoned Komenda Sugar Factory
    Komenda Sugar Factory
    Photos: The abandoned Komenda Sugar Factory
    Photos: The abandoned Komenda Sugar Factory
    Komenda Sugar Factory
    Photos: The abandoned Komenda Sugar Factory

    Source: myjoyonline.com.

  • Boycott Komenda Sugar Factory demonstration – NPP urges youth

    The New Patriotic Party (NPP) in the Komenda-Edina-Eguafo-Abrem (KEEA) Constituency in the Central Region, has asked its supporters to boycott a demonstration by the youth for the immediate reopening of the Komenda Sugar Factory.

    A section of the youth in the KEEA have written to the Central Regional Police Command for permit to organise a peaceful demonstration on Tuesday, July 6, to demand the immediate reopening of the factory.

    However, the NPP said the demonstration was politically motivated to create disaffection for government, regardless of efforts being made to get the factory to operate.

    A press release copied to the Ghana News Agency in Cape Coast, signed by Mr Michael Botsio, the KEEA Communications Director of the NPP, said the demonstration was borne out of malice.

    It alleged that the key leaders of the intended demonstration were members of the National Democratic Congress, hence the move was full of mischief.

    The demonstration sought to create the impression that the non-functioning of the factory was the fault of the NPP-led government, the statement said, adding: “We find this most unfortunate and an affront to the intelligence of the people of KEEA.”

    It, however, declared the Party’s support for any genuine move to get the defunct factory operational to create employment for the youth and spur economic growth.

    “The NPP in KEEA shares in the frustration of the people of Komenda over the inability of the factory to operate. We also believe that the factory, when in operation, will create employment for the teeming youth and better the standard of living of the community and municipality,” the statement said.

    It assured of government’s determination to revive the factory as negotiations were ongoing with private investors to achieve that goal.

    “The government has never relented in its efforts to see the factory in operation and as a party we want to assure the teeming youth of KEEA that the strategic investor will certainly come on board as soon as possible,” it said.

    “The Komenda Sugar Factory will come back to life.”

    Source: GNA

  • Alan Kyerematen explains why Komenda Sugar Factory is not working

    Alan John Kwadwo Kyerematen, the Trade and Industry minister-nominee has explained that the Komenda Sugar Factory is not working because a full test run was never completed before the factory was commissioned on May 30, 2016.

    According to him, the reason was from an audit report conducted in October 2017.

    Answering questions from the Appointments Committee when he appeared to be vetted, Alan Kyerematen stated: “A number of critical parts of the factory had not been installed. For instance, there should be a crushing plant for crushing sugarcane. There should also be a vertical and horizontal crystallizer and it is only when these components are in place, one can produce white sugar.”

    Alan Kyerematen was responding to a question posed by Lawyer Francis Xavier Sosu (NDC- Madina MP).

    The nominee said a re-evaluation and a forensic audit have been conducted and the sugar factory has been handed over to Agrotech, but for the COVID-19 pandemic, work would have commenced at the factory to ensure that it was fully operationalised.

    Source: www.ghanaweb.com

  • Komenda Sugar Factory will work again – Naana Opoku-Agyemang

    Professor Naana Jane Opoku-Agyemang, Running Mate of the former President, Mr John Dramani Mahama has called on the people of Komenda and its environs to appreciate the confidence reposed in her by the Party and vote for NDC in the upcoming December general election.

    Addressing party faithfuls and supporters at Komenda as part of her two day visit to the Central Region, the Former Education Minister gave the assurance that the next NDC government would make the Komenda Sugar factory work better again.

    She explained that the decision of the Party to revamp the defunct Komenda Factory when it was in government was to create more employment to offer alternative livelihoods to the people aside fishing, but it was abandoned.

    “So let us forge ahead in the right direction to get the recognition that we deserve and also get our factory back”, she stressed.

    She expressed the confidence that the people of Komenda would make the right decisions as always, come December, because Komenda deserved more than it was getting, she added.

    Prof Opoku-Agyemang admonished NDC supporters to desist from engaging in insults and violence saying, “the only fight we have to engage in and play our respective roles to achieve is the fight for the progress and development of the nation”.

    Earlier, she paid a courtesy call on the paramount Chief of Komenda Traditional Area, Nana Kojo Kru II to officially introduce herself to him and to seek his blessings as a daughter of the land.

    Nana Kojo Kru commended Former President Mahama and the NDC for believing in one of his daughters and choosing her as the running mate, saying she was more than capable to hold the Vice Presidential office.

    He however, advised Prof Opoku-Agyemang to be accommodative and tolerant and bring to bear her massive experience to justify her selection.

    Prof Opoku-Agyemang is the first female to be selected as a running mate of the NDC.

     

    Source: GNA

  • President Akufo-Addo has built 135 factories in 3 years – Hopeson Adorye

    2020 general election is just around the corner and politicians are heavily campaigning in a bid to convince a majority of the population to vote for their respective parties.

    The two leading political parties in Ghana, New Patriotic Party (NPP) and the National Democratic Congress (NDC), are still debating on whose manifesto is the best, development projects and other issues related to politics.

    Hopeson Adorye an aspiring NPP member of parliament for Kpong katamanso,  has reacted to the NDC’s analysis of his party’s manifesto.

    In an interview on the matter, Mr. Adorye highlighted key developmental projects done under the current NPP administration the past three and a half years.

    He said the NDC has nothing to tell Ghanaians and their frustration is forcing them to make certain unnecessary moves but that will not change their fate.He added that the NPP government has built about a hundred and thirty- five factories in collaboration with private investors and out of these, 50 of those factories have begun operations.

    He named places where such factories could be located including his own constituency, the Kpone Katamanso constituency and Tema.

    Source: operanewsapp.com

  • Komenda Sugar Factory agreement will come to Parliament soon — Trade Minister

    The Trade and Industry Minister, Alan John Kojo Kyerematen, says the Komenda Sugar Factory will be fully operational once an agreement between government and the selected strategic investor, Park Agrotech, has been submitted to Parliament for approval.

    “It will be our pleasure to do this as soon as possible, hopefully within the next month and a half,” he told lawmakers when he appeared before them on Wednesday to answer a question by the Member for Chereponi, Samuel A. Jabanyite, on the current status of the factory and efforts being made to operationalise it.

    Mr. Kyerematen said Park Agrotech will begin a comprehensive programme of action to bring the factory to life as soon as restrictions on foreign travels have been lifted and all relevant approvals have been secured.

    Park Agrotech was selected after a bid evaluation process to identify a strategic investor with the requisite technical and financial capacity to operate the factory efficiently and profitably, he stressed.

    He said the company will be working in partnership with STM Projects Limited, an Indian-based company with extensive experience in the management and operation of sugar mills and plantations in India and other parts of the world.

    Under the agreement, Park Agrotech will invest US$28m over the first three years in capital expenditure and working capital, and also pay an annual concession fee of US$3.3m for a period of 15 years.

    The Minister said the strategic policy framework for the implementation of the project is a National Sugar Policy which was approved by Cabinet in October 2019.

    Source: thebusiness24online.com

  • Govt hands over Komenda Sugar Factory to Indian investor

    The Government of Ghana has finally handed over the Komenda Sugar Factory to a Strategic Investor.

    Park Aggrotech Company Limited, an Indian company based in Ghana and a subsidiary of the Skylark Group of companies won the bid to manage the sugar factory.

    Read: Government announces strategic investor for Komenda Sugar Factory

    The Managing Director of Agrotech Company Limited is Lalit Mishra.

    The factory was on Tuesday, November 26, 2019, handed over to the Indian firm to breathe life into the factory after a three-and-half year break.

    On Tuesday officials of the Trade Ministry and PwC introduced the investor to the community and officially handed over the facility to the investor.

    The Paramount Chief of Komenda Traditional Area, Nana Kojo Kru II said, “it is a dream come true” that this is happening during his tenure.

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

    Read: You cannot sell Komenda Sugar Factory to create unemployment ICU

    President Akufo-Addo in September 2018 disclosed that government is in the process of finding a strategic investor to revive the “debt-ridden and idle” factory.

    According to him, the sale is due to serious deficiencies including the unavailability of sugarcane in sufficient quantities in the catchment area.

    He also revealed that the government has inadequate working capital required to make the factory functional.

    Subsequently, the Trade and Industry Minister, Alan Kyeremanten told Parliament in April this year that, the factory will be sold to a new investor at a depreciated value of $12 million.

     

    Source: Starrfm.com.gh

  • Government announces strategic investor for Komenda Sugar Factory

    Government has announced a strategic investor for the Komenda Sugar Factory.

    Park Aggrotech Company Limited, a subsidiary of the Skylark Group of companies from India won the bid to manage the sugar factory.

    On Tuesday officials of the Trade Ministry and PwC introduced the investor to the community and officially handed over the facility to the investor.

    Read: You cannot sell Komenda Sugar Factory to create unemployment ICU

    The Paramount Chief of Komenda Traditional Area, Nana Kojo Kru II said, “it is a dream come true” that this is happening during his tenure in office as the Paramount Chief of the area.

    Three years since its commissioning, the $35 million factory remains defunct.

    This has not gone down well with many Ghanaians, especially, residents of Komenda who were promised jobs and other opportunities when the factory was commissioned.

    President in September 2018 disclosed that government is in the process of finding a strategic investor to revive the “debt-ridden and idle” factory.

    According to him, the sale is due to serious deficiencies including the unavailability of sugarcane in sufficient quantities in the catchment area.

    He also revealed that the government has inadequate working capital required to make the factory functional.

    Subsequently, the Trade and Industry Minister, Alan Kyeremanten told Parliament in April this year that, the factory will be sold to a new investor at a depreciated value of $12 million.

    Read: Komenda Sugar Factory still sits idle

    Explaining the process that led to the selection of the current investor, representatives of PwC, the body that managed the process of looking for a strategic investor, said“ we started with a request for the expression of interest. 15 expressions of interest came in, by the time we actually requested for formal bids, we got about five and then we went through a process of evaluation of those five bids.”

     

    Source: Myjoyonline.com