THE Ministry of Trade and Industry on Thursday announced a process to attract a strategic investor to acquire the assets of the Komenda Sugar factory and manage its operations.
According to the Sector Minister, the move forms part of the government’s efforts to return the factory to commercial production.
He said the Ministry, in collaboration with the transaction advisor, PricewaterhouseCoopers (PWC), is working to attract a new investor to venture into the company.
The Trade Minister disclosed that after a technical audit of the company, it was realised that it was not adequately prepared to begin commercial production.
“Overall, about 35 items had not been installed on commissioning, although they are critical for the production sulphurless white sugar,” he said.
The revelations by the Trade Minister are not surprising because since it was commissioned to start commercial production, the factory has remained shut.
Indeed, since former President John Mahama cut the sod for commercial work to begin, the proposed revival of the factory could not water realise.
This was because the factory also lacked raw materials such as sugar cane for the production of high quality sugar for both domestic consumption and exports.
Disappointingly, the factory that was expected to provide direct jobs for 400 people and 2,000 out-grower farmers, failed to operate.
As a result, the factory also could not produce to drastically reduce the importation of sugar as was expected.
As a matter of fact, the revival of the Komenda Sugar factory, formed part of the then government’s strategy to reduce importation of sugar with foreign exchange which was affecting the stability of the cedi.
Obviously, if that strategy had succeeded, it would have been of immense benefit for the country.
The Ghanaian Times is hopeful that the new initiative of the government would work out to enable a strategic investor to take over and produce in commercial quantities for local consumption and export.
Not only that, it would create indirect jobs for people in the sugar industry in every part of the country.
We urge the government not to relent in the effort of reviving the factory which can play a vital role in stabilising the cedi and contributing positively to the growth of the economy.
