The government is finalizing a 20-year lease agreement with West Africa Agro Limited to revive the Komenda Sugar Development Company Limited. Trade and Industry Minister, Mr. Kobina Tahir Hammond, made the announcement after visiting the sugar mill, which has been inactive for over seven years.
The new investor, West Africa Agro Limited, is importing 550 tonnes of raw sugar to refine into sulpherless white sugar. The company aims to produce sugarcane sugar within three years.
Mr. Hammond stated, “We’re leasing our assets to the company, which is going to work on it and pay us at the end of the day… I am thinking of leasing it to them for 15 to 20 years with an option of extension.”
The government has invested GHS45 million to prepare the company for the new investor. Mr. Hammond said, “Initially, they’re bringing crude sugar to refine, and from the documentation, we should be expecting some refined sugar [from sugarcane production] … it will take about three years.”
After the three-year period, the company plans to cultivate sugarcane on 31,000 hectares of land, including 6,000 hectares on the project site. This will enable the factory to operate at full capacity, processing sugarcane into sulpherless white sugar.
Mr. Hammond emphasized, “Ultimately, we’ll see some life in the plant… government keeps expending money into making sure that it doesn’t become a white elephant.” He added that a board has been established to ensure the success of the company.
The Komenda Sugar Development Company Limited was commissioned over seven years ago but has not been operational. A 2017 Parliament report revealed that the 1,250TDC plant cost US$37.82 million but only performed a test run, producing inedible sugar.
The lease agreement with West Africa Agro Limited is expected to bring new life to the Komenda Sugar Development Company Limited, creating jobs and stimulating economic growth in the region.
