The government has revealed that it is close to finalising a lease agreement for the Komenda Sugar Development Company Limited with West Africa Agro Limited, an Indian-based firm.
The lease will be for an initial term of 15 to 20 years, with options for renewal.
The Minister of Trade and Industry K.T. Hammond explained that this move is intended to revitalise the factory and boost its ability to meet domestic sugar demands.
Established in 1964, the Komenda Sugar Factory had been inactive for an extended period.

In 2016, the previous National Democratic Congress (NDC) administration secured a $35 million loan from the Indian Export-Import Bank, followed by an additional $24 million investment to rehabilitate the factory.
Currently, the factory is in the testing phase as it prepares for full-scale production.
The trade minister said: ““It’s a company which has a board. We just put them in charge. But it’s 100% Ghana owned. But we are leasing it. We are leasing our assets to a company that is going to work on it. I mean, use our assets, our equipment, use it, and then pay us back. At the end of the day, we’re not going to have shares in their products, but the company is 100% going to own, thinking of giving it to them for 15 to 20 years with an option of an extension or some sort of renewal,” he noted.
KT Hammond highlighted the government’s commitment to revitalising the factory and criticised the previous administration for its lack of diligence

“2016 into the next election, there was a rush to commission it. It was commissioned and hasn’t worked since. Nothing was put in a proper place. As you now see it. A lot of things went wrong with this factory here. I’ve said it many times.
“Those of you who recall, in an answer to a question in parliament, I explained the genesis of this and why it hasn’t worked, how much money has been expended in this edifice and how much should have been the actual cost, and how my government, the New Patriotic Party (NPP), has had to invest and get it running.
“I told the whole country that a factory of this capacity even now should be costing about 18 million or so dollars, “he added.
During a recent tour, Minister Hammond confirmed that the government is ready to proceed with the lease agreement, aiming to restore the factory’s operations and enhance local production.