$35m Komenda Sugar factory beyond recovery – GAWU
By Isaac AIDOO, Accra
The General Agricultural Workers Union (GAWU) has criticized the defunct $35 million Komenda Sugar factory, labeling it as a wasted investment for Ghana.
According to the Union, after conducting thorough assessments, it appears unlikely that the factory can be revitalized.
Mr. Edward Kareweh, the General Secretary of GAWU, demanded transparency from the government regarding the status of the factory.
He emphasized that Ghanaians have the right to know why the factory remains non-operational despite significant investments. Mr. Kareweh urged accountability, stressing that taxpayers’ money had been used in the establishment of the factory.
Calling upon the Minister of Trade and Industry to provide clarity on the matter, Mr. Kareweh highlighted the disparity between the government’s efforts in building new factories under the 1D1F initiative and the inactivity of the Komenda sugarcane factory.
He expressed concern over the apparent waste of resources, stating that such actions contribute to the country’s poverty.
Furthermore, Mr. Kareweh revealed that lands intended for sugarcane cultivation to supply the factory are now unavailable, as they have been leased for oil palm and rubber projects.
He noted that farmers are unwilling to keep their lands idle indefinitely, especially with alternative uses available.
The Komenda Sugar Factory, established in 1964, faced numerous challenges over the years, leading to its eventual closure.
Despite being built at a cost of $35 million through an Indian Exim Bank facility, the factory encountered management issues and technical difficulties.
Although a test-run was attempted in 2016, it was halted due to insufficient sugarcane availability.
Since its commissioning in 2016, the factory has remained inactive.
With a capacity to crush 1,250 tonnes of sugarcane per day, it was intended to secure a $24.5-million Indian Exim Bank credit facility to implement a plantation and out-grower scheme, aimed at providing raw materials for the factory.
However, a technical audit revealed several challenges, including unfavorable soil conditions for quality sugarcane production. Additionally, critical processing component units necessary for producing refined white sugar were not fully installed during the test-run, hindering the factory’s functionality.
Despite plans to cultivate 14,100 acres of sugarcane to sustain the factory, this initiative never materialized.
The available land size for sugarcane cultivation fell far short of the required 6,000 acres to operate the factory at full capacity. Moreover, there was a lack of an out-grower scheme to support small-scale farmers in supplying sugarcane to the factory.
These factors contributed to the factory’s inability to produce sugar and its subsequent closure, highlighting the complex challenges faced by the Komenda Sugar Factory in its quest for operational viability.
