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Business News of Friday, 24 May 2019

Source: dailyguidenetwork.com

Komenda Sugar Factory set for 2020

The Komenda Sugar Factory in the Central Region is set to begin operations in mid 2020.

Chief Executive Officer (CEO) of the Ghana Investments Promotion Centre (GIPC), Yofi Grant, who made this known said, “We have interested parties, quite a number who are working hard to do that.”
He made the disclosure when the Central Regional House of Chiefs called on President Akufo-Addo at the Jubilee House yesterday.

President of the Regional House of Chiefs, Obrempong Nyanful Krampa, called for the revival of certain factories in the region, key among them being the Komenda Sugar Factory, which was closed after the fanfare that characterized the grand opening by the previous Mahama administration.

The Komenda Sugar Factory, which was built at a cost of $35 million from an Indian EXIM Bank facility, was inaugurated by then President John Mahama in May 2016, amid pomp and pageantry but was locked after a few test runs.

The factory was also expected to generate energy for its production activities and produce by-products such as molasses for the alcohol industry.

But many challenges, including the unreliable supply of sugarcane for continuous processing after the preliminary test run, hampered the operations of the company.

In November 2017, the government initiated processes to revive operations of the factory.

The Minister of Trade and Industry, Alan Kyerematen, told Parliament that a $24.5million Indian EXIM Bank credit facility was being sourced to develop and implement a plantation and out-grower scheme in a bid to provide raw materials for the factory.

Under the scheme, some 14,100 acres of sugar cane would be cultivated to feed the plant.

Delay in the release of funds for the growing of the sugarcane has turned the plant into a white elephant.

But the GIPC boss also revealed that talks are being held with a number of interested parties from Turkey, Dubai and Europe.

He also said discussions are being held with an investor to secure $1 billion for the ‘Cape Coast Green City’ project, adding that feasibility study has already begun.

President Akufo-Addo also reiterated the government’s determination to fix deplorable roads in the region.