Residents of Komenda in Ghana’s Central Region, deeply committed to protecting their local economy, have threatened to protest the government’s proposal to lease the Komenda Sugar Factory to West Africa Agro Limited, an Indian-based firm.
The government, led by Minister of Trade and Industry K.T. Hammond, has revealed plans to lease the Komenda Sugar Development Company Limited for a renewable period of 15 to 20 years. This initiative aims to revive the factory’s operations to meet local sugar demand.
However, residents vehemently oppose this move and have vowed to take to the streets if the government does not reverse its decision.
Samuel Awudzirato, Convenor for Concerned Residents of Komenda, emphasized their demand for the factory to remain under full government ownership.
“We demand that the government not lease the factory to any entity. The factory is 100% owned by the government,” Awudzirato stated in an interview with Citi News.
He expressed grave concerns about the potential impact on local farmers if the factory is leased to a private entity, arguing that local sugar cane production should be prioritized over importing raw sugar for refining, as it could threaten their livelihood.
“We want the factory to revert to producing sugar from sugar cane, not just importing raw sugar from India and refining it,” he added.
The minority in Parliament has also announced plans to summon Minister K.T. Hammond to address concerns over the lease agreement.
The Komenda Sugar Development Company Limited, established in 1964, has experienced periods of halted operations. Recent efforts to revive it have included significant investments, including a loan secured from the Indian Export-Import Bank.
During a recent inspection tour, Minister K.T. Hammond affirmed the government’s readiness to proceed with the lease to West Africa Agro Limited. He highlighted potential benefits such as increased local economic development and enhanced sugar production capacity, which could result from the expertise and resources that the Indian-based firm could bring to the factory.
As tensions escalate, residents and political stakeholders await further developments regarding the future of the Komenda Sugar Factory.
