Prior to the introduction of refined sugar in pre-colonial times, it is believed that honey and some fruits were used as sweeteners by people at the time. It is also believed that white sugar was introduced in the then Ghana by the Arab traders before contact with the Europeans. Other schools of thought contend the commodity was introduced on the shores of Ghana through trade with Europeans.
Throughout Ghana and West Africa’s contact with Europeans, sugar was an integral part of the trade. During the Trans-Atlantic Slave Trade, sugar was a key commodity. Even after the Trans-Atlantic Slave Trade and colonialism, sugar has become common staple in the diet of Ghanaians and West Africans in general.
After independence, Ghana continued to import large volumes of sugar into the country. Ghana’s first President, Dr. Kwame Nkrumah saw the need to cut down the importation by establishing indigenous factories after realizing that the country has the capacity to produce its own sugar.
Komenda Sugar Factory – The Genesis
Under the leadership of Dr. Kwame Nkrumah, two sugar factories were planned and established; Komenda and Asutsuare. The construction of the two factories was undertaken between 1959 and 1966 and were all public sector projects. The focus of this piece, the Komenda Sugar Factory, was established in the Komenda Edina Eguafo Abirem District in the Central Region of Ghana.
According to the then government’s Seven-Year Development Plan, the Komenda Factory was planned to produce 24,000 tons of sugar per annum while Asutsuare was also planned to produce 15,000 per annum both at full capacity. The combined output of 39,000 tons was just a little over half of the country’s demand then which stood at about 70,000 tons per annum.
Sadly, by 1969, production for both factories had dropped significantly producing a combined output of just 4,125 tons representing just 10 to 11% of their full production capacity. However, at its peak, the Komenda Factory employed about 200 workers and supplied sugar to most state schools and organizations.
Cessation of Operations in 1990s.
In the 1990s the Komenda Sugar Factory ground to a halt. A number of factors accounted for the failure. Some of the factors commonly cited in the literature include poor infrastructure and logistical issues such as transportation networks and water supply. Economic constraints and financial planning also contributed to the collapse of the factory. Lack of proper coordination was key as the public sector placed agriculture and industry under different ministries and agencies making coordination difficult.
Among these factors, one key factor that caused the collapse of the factory as far back as 3 decades ago was the supply of raw materials. Does it ring a bell? It was identified that the supply of sugarcane was insufficient and inconsistent, leading to underutilization of the factory’s capacity. Initial plans were based on large-scale irrigated plantations, but in reality, the factory had to rely on smallholder outgrowers who lacked the necessary infrastructure to supply cane regularly.
This is what P.P Van Der Wel who conducted an extensive study on the factory in 1973 has to say;
“Both factories seemed to have been completed according to schedule and to be well designed and well adapted to local conditions. Neither were there any indications of major difficulties’ originating from the operation of the factories. There were obviously great difficulties in reaching efficient operation as witnessed by a low to very low recovery and a very high fuel consumption, but these difficulties appeared to be due to the insufficient and irregular supply of cane and its low average quality rather than to problems located in the factories themselves. It also became quickly apparent that the development of the agricultural parts of both projects had not only deviated in time, but also in substance from the projects as originally conceived and accepted for implementation.
He further added that, “While the original plans were completely based, on large scale irrigated plantation production, the project as actually developed depended partly on plantation cane, partly on cane grown by a large number of “outgrowers”, i. e . individual or cooperatively organised farmers.’ This constituted not only a major change in the organisation of production; it also meant a change-over from a rather intensive form of irrigated agriculture (the original concept) to a less intensive form with lower yields per acre and mainly dependent on rainfall. None of the relatively small and dispersed “outgrowers” farms had irrigation facilities; neither was there any indication that the irrigation of these farms might eventually be considered.”
So that was how the factory became a white elephant in the 1990s leading to the laying off of workers, increasing importation of sugar among other economic hardships.
The Attempts at Revival
After about 2 decades of inactivity, the then-President John Dramani Mahama saw the need to revamp the Komenda Sugar Factory. In 2014, the government partnered with the private sector to revive the Komenda Sugar Factory. The reconstruction was financed through a $35 million loan from the Export and Import (EXIM) Bank of India, with an additional $1.5 million contribution from the Government of Ghana, bringing the total investment to $36.5 million.
Also take note that to ensure a sustainable raw material supply, a further $24.5 million credit was allocated for the development of a sugarcane plantation with irrigation facilities.
After two years, on May 30, 2016, then-President John Dramani Mahama inaugurated the refurbished Komenda Sugar Factory. The upgraded facility was designed to crush 1,250 tonnes of sugarcane per day, an improvement over its previous capacity. It was expected to generate over 7,300 jobs and produce ethanol which can be used for the production of some medical supplies. In addition, the sugar residue, according to the plan, was scheduled to be used to generate three megawatts of electricity.
However, just a few months after its re-commissioning and few test runs, the factory halted operations in July 2016 due to a lack of sufficient raw materials and other operational challenges. It could be deduced that the same challenges that caused the failure of the factory in the 1990s reared its head here again.
The Immediate Past Government’s Attempts at Revival
The people of Komenda and its environs were reignited with hope after the former President Nana Addo Dankwah Akufo-Addo pledged that his government would see to the operationalization of the factory. He also condemned the previous government for failing to put in place measures to ensure adequate, consistent, and quality sugarcane for the sugar.
The then Minister for Trade and Industry, Alan Kyerematen signed an agreement in June 2019 with Park Agrotech Ghana Limited to operate the Komenda Sugar Factory. The company committed to investing $28 million in capital expenditure over the first three years and was to pay an annual concession fee of $3.3 million for 15 years. However, despite this agreement, which was even announced in parliament, no concrete actions were seen at the factory.
The subsequent Minister for Trade and Industry, K. T. Hammond also in August last year announced a new strategy to revive the factory which brought hope to the people of Ghana and more especially, residents of Komenda. The Minister at the tour of the facility announced that the government had finalized a 20-year lease agreement with West Africa Agro Limited. The company planned to import raw sugar for refining initially, with a goal of producing sugar from locally cultivated sugarcane within three years. The contract also involved cultivating 31,000 hectares of land for sugarcane, including 6,000 hectares on the factory site. Yet, nothing was seen before they left office.
A Fresh Commitment from the New Government – But Will it Work?
Two ministers under the new government have made a fresh commitment to revive the rusting away $36 million-dollar factory. Minister for Agriculture, Eric Opoku at his vetting stated that the government would collaborate with the Ministry of Trade and Industry to revamp the Komenda Sugar Factory. He went further to underscore the importance of reducing Ghana’s reliance on sugar imports and ensuring a continuous supply of sugarcane from local farmers.
Just recently, the Minister for Trade and Industry, Elizabeth Ofosu-Adjare paid a working visit to the factory site. She revealed that the wearing away factory forms part of the government’s 24-Hour economic policy and hence the government is committed to revive the facility on an expedited timelines. Isn’t this commitment just like the previous commitments given by government officials in times past? Only time will tell.
Why Reviving Komenda Sugar Factory is Non-Negotiable
Ghana currently heavily depends on imported sugar from countries such as Brazil, France, Thailand, and Guatemala among others. The High Street Journal’s analysis of OEC data reveals that Ghana’s sugar importation bill from 2013 to 2023 amounted to a little over $2 billion. On average, the country imports $190 million worth of sugar annually.
Source: Author-Generate with Data from OEC
The graph shows a fluctuating trend in Ghana’s sugar importation bill over the last decade. The highest import bill was recorded in 2013 ($292 million), followed by a decline, with 2016 registering the lowest ($143 million). The bill peaked again in 2017 ($209 million) before dropping in subsequent years. While there was a decline in 2020, the trend has remained relatively stable between 2020 and 2023, with values hovering around $150 million to $195 million.
Moreover, the latest Ghana’s Trade Report published by the Ghana Statistical Service (GSS) also revealed that sugar is among the Top 10 food imports recorded in 2024 ranking fourth. The country imported sugar worth GHC2.37 billion in 2024 which is almost about $150 million.
The question is why do we spend so much forex just to import sugar when we have a $36 million facility to produce same rusting away somewhere in the Central Region? It is apparent that the ever-depreciating cedi is partly due to the high importation of sugar.
What Next?
In all of these conversations, one thing is very clear the very reasons why the factory hasn’t been operationalized are enough evidence that the country is not a learning country. The same lack of raw materials that caused the facility to fail in the 1990s is the same reason why the factory is still not working in 2025 despite the large sums of loans pumped into reviving the factory. This shows a country that does not learn from their past mistakes.
Or it is a deliberate attempt by power-wielding persons to sabotage the factory due to their own parochial interest. Whatever the reason, the time for the new government to act is now. It can’t continue to be a talk shop as was done in the past by the previous government. The facility to create numerous direct and indirect jobs while reducing our imports to improve the country’s economy cannot be left to rot.
Civil Society Organizations (CSOs), the residents of Komenda and its environs, the traditional leaders, the media and all well meaning and concerned citizens must rise to put the government on its toes to save the $36 million-dollar loan facility from decaying away.
