The Trade Minister, Elizabeth Ofosu-Adjare, said that the Komenda Sugar Factory had been cut off from electricity and water supply due to outstanding debts. She revealed the news on the floor of Parliament on Tuesday while updating the status of the Komenda Sugar Factory. The minister revealed that the institution is now burdened by massive debt, exacerbating existing technological and operational difficulties. According to her, the plant has been unable to function at full capacity owing to serious deficiencies in its machinery and equipment, which have not been fixed since the facility was rebuilt in 2016.
“Technical and operational shortcomings have prevented the factory from operating at full capacity. The factory’s equipment and machinery have not been refurbished since its creation in 2016. To restart the factory, the equipment generators and motors need maintenance, and the boiler top coil must be replaced,” she told Parliament. Mrs. Ofosu-Adjare added that the Ghana Electricity Company disconnected the plant from the national grid, and the Ghana Water Company Limited disconnected it from water supply due to outstanding debts.
“The building has acquired huge debts in addition to the dilapidated condition of the equipment,” she told reporters.
Apart from infrastructure and utility issues, the Minister stated that raw material shortages were a significant impediment to rebuilding the plant. She stated that the farming groups intended to provide sugarcane have become disillusioned, mostly due to inadequate institutional support systems and ambiguous purchasing arrangements.
“The farming community, which was anticipated to anchor the raw material supply, remains disconnected owing to a lack of institutional support and unclear procurement channels,” she said.
As part of the government’s response, Mrs. Ofosu-Adjare stated that the Ministry of Trade and Industry had prioritised the hiring of a transactional consultant to restructure and bundle the factory for private sector involvement.
“The ministry has prioritized the engagement of a transactional advisor to bundle the factory and secure a strategic investor to operationalize the plant and farms in the 2026 budget,” she added.
The Komenda Sugar Factory, a signature industrial project under Ghana’s industrialization plan, was first intended to cut the country’s strong dependence on imported sugar and generate employment in the Central Region. However, years of operating obstacles have left the facility mostly inactive, raising renewed calls for a long-term rehabilitation plan based on private sector participation and effective farm-to-factory relationships.
Source:myjoyonline.com
