Deal #6620

Ghana
Created at
2018-11-26
Last update
2024-02-22
Last full update
2024-02-22

Land area

Intended size
3 000 ha
Size under contract (leased or purchased area)
  • [current] 3000 ha

Intention of investment

Intention of investment
  • [current] Biomass for biofuels, Food crops, Renewable energy unspecified (3000 ha)
Comment on intention of investment
To produce sugar and its related products for both local and international markets. Produce 1,250 tonnes of cane per day of white sugar , ethanol and 1.0 megawatts surplus power.

Nature of the deal

Nature of the deal
Outright purchase
Comment on nature of the deal
PPP. The private partner Agripark has an operational licence to access the assets of the state including the land of 3,000ha. Sugarcane will be produced from both the state's nucleus farm and also through outgrower schemes. In total over 6,000acrs are required for supply sugar cane to the factory. There used to be an old sugar factory, for which the government acquired land. The new factory is located on land that used to be a sugar cane farm supplying the old factory.

Negotiation status

Negotiation status
  • [current] Concluded (Contract signed)
Comment on negotiation status
Komenda Sugar Factory is a Ghanaian factory established in 1964 and its operations ground to a halt in the early 1990s. This was due to poor management and technical issues.

Implementation status

Implementation status
  • [2016] Startup phase (no production)
  • [2020] Project not started
  • [2023-09, current] Project not started
Comment on implementation status
Factory was opened in 2016, and then on hold due to lack of raw material to feed the factory and financial issues. A field visit in 2020 by the Ghana Data Campaign found the factory was still not operational. In 2022, the President Nana Addo Dankwa Akufo-Addo has given the assurance that the Komenda Sugar Factory, currently undergoing test run, will be commissioned by the close of the year. The test run, according officials of the factory, has produced 12.5 metric tons of unrefined sugar in barely two months. However, as of September 2023, the factory is still not operational. According to the minister of parliamentary affairs, the reason the factory is not successful is because there is no arable land in the vicinity of the factory to provide the sugarcane. These implementation statuses relate to the sugar factory, there is nothing about the plantation in the data sources but it seems that it was never in operation.

Purchase price

Comment on purchase price
Over the first three years of the agreement, Park Agrotech will invest US$28 million in capital expenditure and working capital, including paying an annual concession fee of US$3.3 million for a period of 15 years (https://www.newsguideafrica.com/2020/06/komenda-sugar-factory-to-resume.html)

Contract farming

Contract farming
Yes
Not on leased / purchased (out-grower)
Yes
Not on leased area/farmers/households (out-grower)
  • [current] 7500
Comment on contract farming
SEFTECH Ltd was contracted to develop 50 acres of sugarcane nursery (2016). There is an additional$24 million to bolster the activities of sugarcane out grower