Ghana, a net importer of sugar, faces a local production deficit. To address this, the government is forging new partnerships with private operators to enhance the sector’s productivity.
Government Finalizes Agreement with West Africa Agro Limited
The Ghanaian government is close to finalizing an agreement with Indian agribusiness group West Africa Agro Limited to improve the management of the Komenda Sugar Factory (KSF). This was revealed by Kobina Tahir Hammond, the Minister of Trade and Industry.
Lease Agreement and Sugarcane Cultivation Plan
The agreement involves granting a 15 to 20-year lease to the Indian group. “We are leasing our assets to the company, which will operate on the factory site and pay us in return. The contract guarantees that after a 3-year operating period, enough sugarcane will have been cultivated on over 31,000 hectares of available land in different production areas to ensure the factory’s raw material supply,” explained Mr. Hammond.
Government Investment and Factory Revitalization
According to the minister, the government has invested 45 million cedis (USD 2.9 million) in renovating the KSF, which has been inactive since its commissioning in 2016, mainly due to insufficient sugarcane supply. The factory has a daily sugarcane crushing capacity of 1,250 tons.
Importing Raw Sugar for Refining
While awaiting the development of new plantations, West Africa Agro Limited plans to import raw sugar, which will be refined to meet local market demand.
Ghana’s Sugar Import Data
According to FAO data, Ghana imported nearly 340,000 tons of refined sugar for over USD 178 million in 2022 to bridge its production gap.