Komenda Sugar Factory Set for Revival as Government Engages Investors

The Government has begun a fresh push to revive the long-idle Komenda Sugar Factory, signalling a renewed focus on agro-industrialisation and export-led growth as part of its broader manufacturing agenda.

Trade, Agribusiness and Industry Minister Elizabeth Ofosu-Adjare told Parliament on Tuesday that the state is seeking a strategic investor to restore the Central Region facility to full operations. The move, she said, forms part of efforts to rebuild domestic production capacity and reduce reliance on imports.

Answering questions on the floor of the House, Ofosu-Adjare disclosed that her ministry has prioritised the appointment of a transaction adviser to structure a viable investment arrangement for the plant. Budgetary provisions have been made in the 2026 fiscal framework to support the factory’s full operationalisation once an investor is secured.

Commissioned in 2016, the Komenda Sugar Factory was designed to process 1,250 metric tonnes of sugarcane per day and serve as a key agro-industrial enclave. However, it has remained largely dormant for years, weighed down by what the minister described as technical, financial and operational challenges that have prevented sustained production.

To reset the project, government has established an interim management committee tasked with conducting a comprehensive technical and financial assessment of the facility and developing a turnaround roadmap. Ofosu-Adjare said she has personally visited Komenda since assuming office, engaging traditional leaders, outgrower farmers and other stakeholders to build consensus around the revival plan.

The renewed attention to Komenda comes as the ministry advances a parallel industrial policy initiative aimed at deepening value addition within the automotive sector. The minister updated lawmakers on progress towards a Ghana Automotive Component Manufacturing Development Policy, which she said is designed to attract investment into vehicle parts production, strengthen standards, develop technical skills and integrate local firms into regional and global supply chains under the African Continental Free Trade Area.

According to Ofosu-Adjare, the draft policy has been circulated to relevant ministries for input. Government will also engage the Minister for Finance, Cassiel Ato Forson, to align proposed fiscal incentives before the policy is submitted to Cabinet for consideration.

Together, the twin initiatives underscore the administration’s intention to reposition Ghana’s industrial base, from agro-processing to automotive manufacturing, as it seeks to stimulate private investment, expand exports and strengthen participation in continental trade.