The Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Agyare, has assured Parliament that the government is taking concrete steps to revive the troubled Komenda Sugar Factory and restore it to full operation.
The government, she said, remains committed to bringing the factory back to life through strategic investment, technical reforms, and improved raw material supply.
Responding to questions from lawmakers on Tuesday, the Minister said, “We are working expeditiously to ensure that the Komenda Sugar Factory comes on stream again,” she told the House.
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Madam Ofosu-Agyare revealed that the factory, commissioned in 2016, has suffered years of poor maintenance and technical setbacks.
She disclosed that key machinery, generators, and motors have not been refurbished since construction, leaving the facility unable to operate at full capacity.
“The machinery and equipment of the factory have not been refurbished since construction,” she said.
The factory was originally designed to process 1,200 metric tons of sugarcane daily and produce up to 150 metric tons of refined sugar, while creating about 80,000 direct and indirect jobs.
The Minister further disclosed that outstanding utility bills have worsened the factory’s operational challenges.
She confirmed that the facility was disconnected by the Electricity Company of Ghana and the Ghana Water Company Limited due to accumulated arrears.
According to her, the government is working to resolve the debts to allow restoration of essential services.
Madam Ofosu-Agyare also admitted that the lack of a reliable sugarcane supply system has stalled production.
She noted that farmers expected to support the factory have remained disengaged due to weak institutional backing and unclear procurement arrangements.
“The farming community remains disengaged because of the lack of institutional support and clear supply channels,” she stated.
To address the challenges, the Minister said the government has established an interim management committee to assess the factory’s assets and liabilities.
The committee is tasked with conducting a comprehensive technical assessment of the factory’s equipment, reviewing its financial obligations, evaluating overall business viability, studying the raw material supply chains, and proposing a sustainable production model to ensure efficient and long-term operations.
“The committee has generated an interim report and is working on a comprehensive assessment,” she said.
Madam Ofosu-Agyare announced that the Ministry has prioritized the engagement of a transaction advisor to package the factory for private sector participation under the 2026 budget.
“As soon as the transactional advisor is procured, the strategic investor will also be secured,” she noted.
She stressed that the involvement of a credible private partner is key to the long-term sustainability of the factory.
On raw material production, the Minister said the government’s “Feed the Industry” programme will drive backward integration.
“We have secured land, and once the private operator indicates the type of sugarcane needed, farmers will begin production,” she explained.
This approach, she said, will ensure a steady supply for the factory when operations resume.
During the session, MPs questioned the management structure of the factory and demanded clarity on how outstanding debts would be settled.
In response, the Minister clarified:
“As at now, the factory is not under any operation, but it is supervised by the Ministry.”
She assured lawmakers that all outstanding issues are being addressed to pave the way for reopening.
The Komenda Sugar Factory remains a key pillar of Ghana’s industrialisation agenda, and its revival is expected to boost employment and local economic growth in the Central Region.
Madam Ofosu-Agyare reiterated the government’s resolve to restore the facility.