Akufo-Addo is rather a self-made albatross, not the Komenda Sugar Factory ||Report||

H.E Nana Addo Dankwa Akufo-Addo
H.E Nana Addo Dankwa Akufo-Addo

The Former Member/ Secretary – Komenda Sugar Project Management Board Ransford Chatman Vanni-Amoah says President Nana Addo Dankwa Akufo-Addo is rather a self-made albatross, not the Komenda Sugar Factory.

According to him, his attention has been drawn to an interview granted by the President of the Republic of Ghana, Nana Addo Dankwa Akufo Addo this morning on Accra based Peace Fm, which he asserted that the Komenda Sugar Factory is an albatross on the neck of the government due to lack of proper planning and unavailability of the raw materials.

Ransford Chatman Vanni-Amoah wishes to set the records straight and expose the ignorance of the president as far as Komenda Sugar Factory issues are concerned.


In a statement, he made shocking revelations including but not limited to;


President Akufo Addo says we did not plan properly before the Komenda Sugar Factory was built. The president really needs proper education on sugar factory business.

In establishment of sugar factories, backward integration approach is adopted. Sugarcane is perishable, so if you grow the raw materials before building the factory, you will cause a financial loss because there would be no machine for milling when the sugarcanes mature.

If the president really read Economics at the University of Ghana, he would understand the Backward Integration and Forward Integration in setting up industries.

The idea for the establishment of the Komenda Sugar Factory was conceived by the Atta Mills/ Mahama led NDC government in the year 2009 with the painstaking feasibility studies executed with the help of the National Federation of Cooperative Sugar Factories Limited in India (NFCSF).

India has the expertise in the field of sugar production. Over 500 sugar factories are available in India and they are the second largest producers of sugar in the world. These indians advised that, the Backward Integration approach is the best and suitable.

Due to the bilateral relationship between Ghana and India, the EXIM Bank of India agreed to assist Ghana to own a sugar factory. US$35 million from the Exim Bank of India as a first trench of credit facility to construct a state of the art sugar factory at Komenda.

The contract, the scope of work, including Engineering, Procurement and Construction (EPC) of the plant was supervised by the National Federation of Cooperative Sugar Factories Limited of India as the project consultants. Seftech India Private Limited was the contractor of the factory.


Although the capacity of the processing plant is 1250 tons of crushing per day. In the interim, the factory was going to depend on the out-grower canes. The available out-growers within the catchment area could supply between 500 to 700 tons of sugarcane per day which is above the minimum requirement of 150tons per day.

The second trench of the loan of US$24.54 million was approved by the Parliament of Ghana in November, 2016 which was to be accessed in February, 2017 to develop 40% of the needed raw materials to be owned by the factory and 60% would be given to the out growers.

If the president lacks knowledge on this second trench, he must consult Mr. Kyerematen. It is disingenuous on the part of the president to ask that if the money was there, why did John Mahama refused to utilize it?


Before the loan of US$125 million was approved by the Parliament, the Ministry of Trade and Industry acting on behalf of the Government of Ghana entered into an agreement with Seftech India Private Ltd to pre-finance the development of 125 acre nursery plantation which ought to be transplanted onto the 2,000 acre farms by January, 2017.

The NPP assumed power and they abandoned the project. The sugarcane nursery plantation was left to over grow due to lack of political will to operationalize the factory.

In July, 2018 Mr. Kyerematen sold the 125 acre sugarcanes to Akpeteshie distillers. Meanwhile, President Akufo Addo says we did not plan on the raw materials. Akufo Addo should ask his minister why Seftech India Private Ltd are demanding judgement debt for the job executed at the farms?

If the president is willing to operationalise the factory, he and his minister would not be give flimsy excuses anytime they are asked about the Komenda Sugar Factory.

John Mahama led NDC government had the Sugar Factory as one of the priority projects.

Annually, over a US$400,000,000 worth of sugar is imported into the country and this quantity is about 80% of the total need of the nation.  The economy cannot afford this huge drain on its scarce foreign exchange reserve. There is an unbelievably huge market for sugar begging to be exploited. There is therefore the need that sugar producing factories be established in this country.


Our vision was to see a nation that is self sufficient in the production of sugar to meet both its domestic and industrial needs and to export the commodity to other African countries.


This project is committed to producing very high quality sugar using methods that exclude the use of sulphur, the capture of a sizeable share of the local sugar market and also to export sugar produced in Ghana to the West African market.


The objective of the project is to meet the urgent need of producing sugar indigenously by using efficient machinery based on state of the art technology, at the lowest cost of production to exploit the tremendously large market in Ghana and in other equally large markets of the West African sub-region in due course of time. In the process, jobs will be offered to a large number of Ghanaians at the production plant, and market will be provided for the produce of a large number of sugarcane farmers.

The key benefits of the project is an import substitute which will enable savings on foreign exchange of US$10.352m per annum. The sugar factory will also produce 4.32m units of power per annum.  It will enable the neighboring villagers to light their homes. The project will benefit approximate 20thousand local farmers.


The project has various advantages:

Sugarcane is a robust crop and will grow in several agro-ecological zones, hence it can benefit several communities, which have no major dependable cash crops to raise their income levels and generate employment.

It will bring desirable socio-economic benefits in terms of income, job opportunities and stem the rural-urban drift of the youth.

A high quality sugar will be a credible import substitution product which could be patronized by Pharmaceutical Industries;Confectionary Industries e.g. chocolate, toffee, drinks and beverages, bakeries, etc.; and Alcoholic industries.

• The industry will provide by-products which will be the primary materials for secondary industries in the manufacture of various types of products.

a. The paper industry

b. Organic fertilizer from the filter mud

c. Livestock feed from bagasse and cane tops; and

d. Molasses for distilling, etc.

• The project is justified in terms of the additional jobs and incomes that would be generated and possibly that production would significantly replace the large imports of sugar in Ghana, which will enable scarce hard earned foreign exchange to be saved for more important and development oriented projects.

• It will generate sufficient income to support research development of the nation.

• It will support Government’s efforts to reactivate the Sugar Industry in Ghana.

• The climatic conditions; rainfall, temperature and soil conditions in the area of operation are very conducive to sugar cane cultivation and hence the sugar industry can be developed easily.

• Industrialization of the rural area where the plant is sited.

• Poverty alleviation and eradication in the community of operation.

• Sustainable socio-economic development and growth of the rural people.

• Optimum utilization of available resources that are presently going to waste.

• The resultant stemming of urban drift.


During the period of the first ten years, the project will generate equal to US$69.6m cash surplus.  The project will be able to service all its debts.  The debt service coverage ratio is 4.14 which is excellent.

The simple internal rate of return on capital investment is US$75.58m. It comes to 18.21% which is very good by international standards.

At this juncture, I would like to reiterate the point that, the Akufo Addo led NPP government lacks the political will be operationalize the Komenda Sugar Factory, and have left is to rot away. The factory and the president, who is an albatross?

SOURCE: Coverghana.com.gh


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