Alan Kyerematen - Minister for Trade and Industry
The Minister for Trade and Industry, Alan Kyerematen, has said the new investor for the Komenda Sugar Factory will commence the implementation of its roadmap on how to run the factory post-COVID-19.
The factory is yet to resume full operations after being shut down for about three years despite the ordeal that foreshadows its opening. A strategic investor, Park Agrotech, has since been selected to revive the factory after a technical audit by Price Waterhouse Coopers (PwC).
While answering a question in Parliament, the Trade and Industry Minister said the government’s ban on foreign travels coupled with the closure of borders, has also affected the process of restoring the Komenda Sugar Factory.
“I am happy to inform this house that in June 2019, Park Afrotech Ghana Limited was approved by cabinet as the preferred strategic investor for the Komenda Sugar Factory. Park Afrotech Limited is a company incorporated and operating in Ghana in the agribusiness sector. It will be working with STM project limited, an Indian based company that has extensive experience in the management of sugar mills and plantations, both in India and other parts of the world. Mr. Speaker, following the approval by cabinet as required by commercial practice, the transactional advisors entered into final negotiations with a successful bidder with a bid to entering into a concession agreement for the operations of the Komenda Sugar Factory,” he said.
The government in 2014 secured a thirty-five million dollars from an Indian Exim Bank to bring the Komenda Sugar Factory back to life after several years of inactivity. The factory is to ensure the workable development of sugarcane plantation and in turn, harness the continuous growth and smooth running of the facility.
In May 2016, it was revamped but has since been faced with various forms of challenges. As a result, it led to its closure in June 2016, barely a month after it was commissioned for operations.
Also, later in November 2017, the government initiated processes to revive the operations of the factory.
Currently, Ghana’s annual sugar requirement is estimated at four hundred thousand tonnes and the factory is expected to produce value-added by-products such as energy and alcohol to support the industry. It was expected to be producing about 1,250 tonnes of sugar each day.
As it stands now, the factory, at its full capacity, can in a year, produce 97% of the country’s sugar needs, representing 250,000 tons.