According to the most recent data from the United Nations COMTRADE database, Ghana imported raw sugar worth US$151 million in 2020 alone, ranking as the 45th highest importer of the good internationally.
The product is also among the top ten most imported goods into the nation, with the cost of importing Ghana’s staple foods rising year over year and now totaling US$2 billion, according to the finance ministry.
The statistics also showed that Mexico, Brazil, the United States, Guatemala, France, and India were the top importers of sugar and sugar confectionery in 2019, with imports totaling US$158.3 million.
Data from the Ghana Export Promotion Authority (GEPA) show that the country consumes about 370,000 tonnes of sugar annually, with domestic production currently at an all-time low.
Industrial and domestic supply prospects
Huge supply opportunities exist for large industrial sugar importers, such as FNJ Investments, Fan Milk, Multi-Pac, Kasapreko, Stallion Industries, Nutrifoods and Blow Chem, among others
The Ministry of Trade and Industry has further projected that domestic consumption of sugar in Ghana could rise to 872,000 metric tonnes in 2030.
Similarly, the West Africa sub-region – which is also forecast to experience rapid growth in sugar consumption – also presents a potential sugar export market for Ghana. Amid these market potentials and existing congenial climatic and lithospheric conditions, production of sugar remains at zero.
The Sugar Industry in Ghana>/b>
Ghana’s sugar industry is virtually fully dependent on imports. Local production remains negligible at a mere 150 tonnes in 2013 according to the UN data, and there’s a mere 6,000 hectares of sugar plantation in existence.
With two sugar mills in Asutsuare and Komenda, these facilities have been lying idle since 1983 largely due to inefficient management. However, the Komenda Sugar Factory was revived in 2015 and 2016 – but was shut down shortly after due to lack of raw materials.
Attempts to revive Komenda sugar factory
In 2016, government secured a US$35million loan from the Export-Import (EXIM) Bank of India and invested it in the factory. An additional US$24million was set aside to support out-grower farmers.
The factory, which was inaugurated on May 31, 2016 to produce sugar, became stillborn due to a multiplicity of factors that were touted as technical and operational challenges.
On June 3, 2020, however, Trade and Industry Minister Alan Kyerematen announced in parliament that Cabinet had officially approved Park Agrotech Limited as a new strategic investor to operate the factory.
That notwithstanding, the current status of the investment by Park Agrotech is unknown.
Nevertheless, a number of plans, according to the trade ministry, are also underway to develop sugar-cane plantations for a second revival of the Komenda sugar factory.
Also, plans by multinational trading house Cargill to build a sugar refinery in Tema are a possibility.
GEPA’s NEDS projections
Meanwhile, GEPA through the National Export Development Strategy (NEDS) has designed a blueprint for harnessing the full potential of sugar production to curb the rising imports.
In the NEDS, the Authority has projected revenues from the export of sugar by 2029 to be US$1.2billion.