Komenda Sugar Factory Cut Off from Power and Water Over Debts — Trade Minister

The Komenda Sugar Factory has been disconnected from the national electricity grid and water supply due to unpaid utility bills, Minister for Trade, Agribusiness and Industry Elizabeth Ofosu-Adjare has disclosed.

Addressing Parliament on Tuesday, February 17, 2026, she revealed that the Electricity Company of Ghana and Ghana Water Company Limited took the action after the factory accumulated significant arrears.

Beyond the utility disconnections, the facility is also burdened by substantial debt, deteriorating infrastructure, inadequate maintenance, and limited capital investment — factors that continue to undermine efforts to revive operations.

Plans to attract strategic investor

The Minister stated that government has prioritised the engagement of a transaction advisor to package the factory for a strategic private investor, with the aim of restoring operations under the 2026 budget.

She assured Parliament that outstanding utility debts will be settled once a private operator assumes control.

“The factory has accumulated electricity bills that are worrisome. When we have the transaction adviser and the private sector operator, it will be part of the cost for the plant, so all of that will be taken care of,” she said.

Facility yet to undergo major refurbishment

Since its commissioning in 2016, the plant has not undergone major refurbishment. Critical components — including generators and motors — require urgent maintenance, while the boiler’s top coil must be replaced to restore full functionality.

Raw material shortages hamper operations

A persistent shortage of sugarcane remains a major barrier to full operationalisation. Farming communities expected to supply cane have reportedly disengaged, citing weak institutional support and unclear procurement arrangements.

Strategic importance and unrealised potential

Commissioned as part of Ghana’s agro-industrialisation drive, the factory was designed to process 1,250 metric tonnes of sugarcane daily and produce between 112 and 150 metric tonnes of refined sugar.

At full capacity, it was projected to create up to 80,000 direct and indirect jobs and serve as an economic hub for Komenda in the Central Region while reducing Ghana’s dependence on imported sugar.

However, its continued underperformance has raised broader concerns about state-led agro-industrial projects and the country’s goal of achieving industrial transformation and food import substitution.