Ghana Plans 15-20-year Lease of Komenda Sugar Factory to Indian Firm

The Ghanaian government is preparing to lease the Komenda Sugar Development Company Limited, known as the Komenda Sugar Factory, to Indian-based West Africa Agro Limited for a 15-20-year renewable lease.

Minister of Trade and Industry K.T. Hammond announced the initiative to revitalise operations to meet domestic sugar demand.

Established in 1964, the factory ceased operations for an extended period before efforts to revive it began under previous administrations.

In 2016, the government secured substantial investments, including a $35 million loan from the Indian Export-Import Bank, to refurbish the factory.

Despite undergoing testing phases for full-scale production, the factory has faced operational challenges.

During a recent inspection tour, Minister K.T. Hammond underscored the government’s decision to lease the factory while emphasising its Ghanaian ownership and the lease’s terms.

“We are leasing our assets to a company that will utilise our equipment and facilities,” Hammond stated. “The lease is set for 15 to 20 years initially, with options for extension.”

Hammond criticised previous administration efforts, noting discrepancies in project management and expenditures.

“The factory’s operational challenges since its commissioning in 2016 reflect past shortcomings,” Hammond remarked. “The current government remains committed to restoring its functionality efficiently.”

The leasing arrangement marks a significant step towards sustainable operation and economic revival of the Komenda Sugar Factory, positioning it to contribute effectively to Ghana’s industrial landscape.