Mahama: Government in Advanced Talks to Revive Komenda Sugar Factory

President John Dramani Mahama has announced that his government is in advanced discussions with a prospective investor to revitalise the Komenda Sugar Factory, which has remained largely dormant since its commissioning. Speaking during a tour of the Central Region, the President disclosed that negotiations began before his administration took office, with the Ministry of Trade continuing engagement with the investor to assess the proposal's viability.

Key aspects of the revival plan include an investor proposal for government to ban imported refined sugar, creating a guaranteed local market for the factory's products. However, President Mahama emphasised that such a policy decision would only be implemented after government confirms the investor's capacity to meet Ghana's domestic demand. "What he wanted was a ban on imported sugar so that he would have the local market. But we also need to assess his capability before we issue a ban. Otherwise, supply may not be able to meet demand," he explained.

The government is considering a phased approach to gradually reduce sugar imports as local production increases, rather than implementing an immediate blanket ban. This measured strategy aims to prevent supply shortages whilst creating space for domestic producers. "We are still engaging the investor, and we may gradually reduce imports to create space for local production while ensuring that the country's demand is adequately met," President Mahama noted.

The Komenda Sugar Factory has long been viewed as a strategic industrial project with potential to create employment, boost local sugar production, and reduce Ghana's reliance on imported sugar. The government's objective is to ensure any revival plan is sustainable and supports the country's long-term industrialisation agenda whilst guaranteeing stable consumer supply.