President John Dramani Mahama has announced that the government is making steady progress in discussions with a private investor to revive the long-dormant Komenda Sugar Factory, describing the initiative as a major step toward strengthening Ghana’s manufacturing sector, creating jobs, and reducing dependence on imported refined sugar.
Speaking during his tour of the Central Region, President Mahama said negotiations are ongoing to return the factory to full operation after years of inactivity.
He noted that the government is determined to ensure the facility resumes production under a sustainable business model that will support both the local economy and the country’s industrialisation agenda.
The President said the proposed investment has the potential to transform the Komenda Sugar Factory into a major producer of sugar for the domestic market while stimulating economic activity across the Central Region.
Government Takes Measured Approach on Sugar Imports
President Mahama disclosed that the prospective investor has requested a complete ban on imported refined sugar to guarantee a ready market for locally produced sugar from the Komenda factory.
However, he stressed that the government would not immediately approve such a request. According to him, protecting local industry must be balanced with safeguarding consumers against possible shortages.
He explained that before any restrictions on imported refined sugar are introduced, the investor must first demonstrate that the factory can produce enough sugar to meet domestic demand.
The President said imposing an immediate import ban without adequate local production could disrupt the market and create supply challenges. For that reason, government intends to adopt a cautious and evidence based approach before implementing any major policy changes.
He said the administration remains committed to supporting local manufacturing while ensuring that businesses and consumers continue to have reliable access to sugar.
Phased Reduction of Imports Under Consideration
Rather than introducing an outright ban, President Mahama said the government is considering a gradual reduction in sugar imports as domestic production increases.
He explained that a phased approach would provide sufficient time for the Komenda Sugar Factory to expand production while maintaining stability in the local market. The strategy would also help local manufacturers gradually increase their market share without creating shortages or price instability.
According to the President, reducing dependence on imported sugar forms part of the government’s broader strategy to strengthen domestic industries and encourage value addition within the country.
As local production grows, Ghana is expected to rely less on imported refined sugar, creating greater opportunities for local businesses and farmers.
Central Region Positioned as Sugar Production Hub
President Mahama said reviving the Komenda Sugar Factory is central to the government’s vision of transforming the Central Region into Ghana’s leading sugar producing area.
He noted that the project extends beyond reopening a single factory. It also aims to stimulate sugar cane cultivation, strengthen agricultural value chains, and encourage industrial development throughout the region.
The President expressed confidence that increased sugar production would support regional economic growth while creating opportunities for businesses involved in farming, transportation, processing, and distribution.
He said the factory could become a catalyst for wider industrial expansion and contribute significantly to Ghana’s economic transformation.
Factory Revival Expected to Create Jobs
Employment generation remains one of the government’s key priorities in the revival project. President Mahama said bringing the factory back into operation would create direct employment within the manufacturing sector while also generating thousands of opportunities across agriculture and related industries.
He emphasised that expanding sugar cane cultivation to supply the factory would provide additional income for farmers and create new opportunities for young people seeking employment.
The President said reviving idle industrial facilities is an important part of the government’s efforts to tackle youth unemployment and stimulate inclusive economic growth.
Ministry Conducts Technical Evaluations
President Mahama disclosed that the Ministry of Trade, Agribusiness, and Industry is overseeing the technical and transactional assessments required before the factory resumes operations.
The ministry is evaluating the investment arrangements, operational requirements, and technical capacity needed to ensure the factory returns to production on a sustainable basis.
According to the President, these assessments are essential to building a commercially viable operation capable of meeting production targets and supporting long term industrial growth.
Government believes careful planning and strong private sector participation will position the Komenda Sugar Factory for lasting success.
Driving Ghana’s Industrial Transformation
The proposed revival of the Komenda Sugar Factory reflects the government’s wider commitment to expanding domestic manufacturing, reducing import dependence, and creating sustainable employment opportunities.
President Mahama said government will continue working with private investors to unlock the potential of strategic state assets while ensuring policies are implemented responsibly and in the national interest.
Although negotiations are still underway, he expressed optimism that the project will restore one of Ghana’s most important industrial facilities and contribute significantly to the country’s economic development.
If successfully revived, the Komenda Sugar Factory is expected to strengthen local sugar production, expand employment opportunities, support farmers, and position the Central Region as the country’s leading centre for sugar manufacturing.
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