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04.04.2019 Headlines

New Investor For Komenda Sugar Factory Will Be Named By April – Alan

New Investor For Komenda Sugar Factory Will Be Named By April – Alan
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Trade and Industry Minister, Alan Kyerematen has told Parliament a strategic investor to take over the running of the Komenda Sugar Factory will be announced by the end of this month, April.

According to him, government has conducted a technical audit into what caused the shutdown of the factory months after it was inaugurated in a bid to create the right conditions for it to be revived.

Answering questions in Parliament on Thursday, Alan Kyerematen said the quest to bring the factory back to life is on course.

“The Ministry in an effort to put the factory in production decided to initiate a new process in consultation with the transaction advisers to attract another strategic investor to acquire the assets of the Komenda Sugar Factory. I envisage that the final decision in respect with this matter will be taken by end of April.”

President Nana Akufo-Addo recently said government is currently scouting for a strategic investor to inject life into the struggling Komenda Sugar factory.

While lamenting the lack of proper planning in the implementation of the project by the Mahama administration, President Akufo-Addo gave assurances of ensuring that the factory becomes viable.

“The previous plan that established is not the best. Those who started it could not complete it, and that is why we came to meet staggering dent and an idle factory.”

“The Minister of Trade and Industry is looking for a strategic investor to come and invest here. We are still searching for one because the initial plans were not the best. It is now we are coming to organize things,” President Akufo-Addo.”

The $35 million factory remains dormant, due to a lack of funds.

It was closed down in June 2016, barely a month after then-President John Mahama commissioned it.

It was expected to be producing about 1,250 tonnes of sugar each day.

The factory, at its full capacity, can, in a year, produce 97% of the nation's sugar needs, representing 250,000 tons.

Following the closure, the factory had to sell sugarcane at its 125-acre seedling plantation to distillers of the local alcoholic beverage popularly known as 'akpeteshie.'

Sugarcane farmers who had hopes of cultivating of supplying the Komenda Sugar factory have also been compelled to sell to producers of akpeteshie.