Komenda residents threaten to protest over proposed Sugar Factory lease

Residents of Komenda in the Central Region have vowed to protest against the government’s proposed plan to lease the Komenda Sugar Factory to a private company.

The government intends to lease the Komenda Sugar Development Company Limited to an Indian-based firm, West Africa Agro Limited, for a renewable term of 15 to 20 years.

Minister of Trade and Industry K.T. Hammond states that this initiative aims to revive the company’s operations to meet domestic demand.

However, the residents of the area are opposing the move, threatening to demonstrate if the government doesn’t rescind its decision.

In an interview with Citi News, Samuel Awudzirato, Convenor for Concerned Residents of Komenda, called on the government to reverse the decision, emphasizing that they want the factory to be fully owned by the government.

He expressed concerns about the impact of the lease on local farmers if the lease process goes through.

“But I can give you a hint, there will be a demonstration very soon. That I can assure you. We demand that the government doesn’t lease the factory to any entity. The factory is 100% owned by the government. We don’t want the factory to be leased to any company.

“We want the factory to be reverted to the production of sugar, through sugar cane, and not just importing the raw sugar from India and refining it to white sugar.

“That process only takes about 20% of the whole production, which means that we have taken out over 10,000 farmers from the whole value chain, which is going to cause serious problems. And so, we demand that they don’t give it to any entity and revert to the old system of crushing sugar cane to produce sugar,” he said.

The minority has also disclosed their intention to summon the Trade Minister K.T Hammond to Parliament.

The Komenda Sugar Development Company Limited, also known as the Komenda Sugar Factory, was established in 1964 but halted operations for an extended period.

In 2016, the previous NDC government secured a $35 million loan from the Indian Export-Import Bank, followed by an additional $24 million investment to revamp the operations of the factory.

The factory is currently undergoing a test run in preparation for full production. During a recent tour, Minister of Trade and Industry K.T. Hammond announced that the government is prepared to lease the factory to West Africa Agro Limited for up to 20 years, with renewal options.