Kobina Tahiru Hammond, Ghana’s Minister of Trade and Industry, has clarified details regarding the lease agreement of the Komenda Sugar Factory to West Africa Agro Limited, an Indian firm.
Contrary to earlier concerns, Hammond confirmed that Ghana benefits financially from the arrangement.
In an interview on Citi FM’s Eyewitness News, Minister Hammond addressed misconceptions about the terms of the lease raised by Yusif Sulemana, Ranking Member of the Trade and Industry Committee.
Sulemana had alleged undisclosed payments to the company for management services.
Hammond clarified, “Ghana will not pay the company. Instead, they will pay us a yearly rent. This rent is currently set at over one million dollars per annum.”
He emphasised that this payment structure will continue annually throughout the lease period, with provisions for extension if the lessee chooses to prolong the agreement.
“At the start of the lease, they will commence paying us this annual rent. It’s agreed upon, and for now, it exceeds one million dollars annually,” Hammond explained.
“If they decide to extend the lease, they will continue paying us rent until they return control of the factory to us.”
The Minister’s statements aim to dispel concerns over financial arrangements and underscore the economic benefits anticipated from revitalising the Komenda Sugar Factory under private management.
The agreement represents a strategic move to enhance Ghana’s industrial capacity and leverage private sector expertise in sugar production.
