Nation holds potential for sugar production

Mr. George Fynn, Head, Policy Planning Monitoring and Evaluation of  the Ministry of Trade and Industry (MOTI), has said Ghana enjoys the climatic and soil preconditions necessary to produce sugar.

“Agronomic studies continue to emphasise the potential for sugar production in Ghana, particularly in the drier northern regions, and have identified specific locations with attractive drainage, water resources, and topographical attributes,” Mr. Fynn said.

He was speaking at a stockholder engagement to solicit their input for a draft National Sugar Policy to help revamp the industry and make it a globally competitive one.

The policy seeks to provide an enabling infrastructural and institutional environment for a globally competitive private sector sugar industry, to help reduce foreign exchange expenditure on imported sugar, contribute to rural industrial development, and provide supplementary electricity through co-generation for the national grid.

The policy forum is therefore to coordinate and regulate the relationships between different stakeholders, such as growers and millers, and assure investors of commitment to the necessary infrastructures; such as feeder roads, water and electricity access; and funding for crop research institutes and out-grower schemes.

It also seeks to ensure that Ghana offers an attractive investment regime to beat alternative investment opportunities in rival economies, particularly in West Africa.

Mr. Fynn explained that despite significant demand for sugar, domestic production remains at zero.

 Sugar was produced in Ghana between the 1960s and 1980s -- yet failed due to excessive governmental controls, inappropriate soviet-era factories, difficulties with spare-parts and the failure of government to facilitate infrastructure development, he said.

 Sugar production requires substantial long-term investment, which could amount to as much as US$700million for a modern sugar estate.

 The prior enactment of legislation and policy would assure investors of policy alignment and protection of their investments.

According to MOTI, Ghana imports substantial quantities of sugar, which is the 18th most valuable product imported in 2013 and fourth-largest food import after rice, fish, and poultry.

In 2011, the country spent US$187million to import 494,000 Metric Tonnes (M/T) of sugar -- and by 2030 sugar consumption is projected to rise to 872,000 m/t.

Sugar is important in terms of food security as well as for foreign exchange, and consumption is growing rapidly.

 The West Africa sub-region, to which Ghana could export duty-free, is also projected to experience more rapid sugar consumption growth than any other region in the next five years.

 Dr. Ekwow Spio-Garbrah, the Trade Minister, said absence of a policy in the 1960s had contributed to the current state of the industry, and expressed hope that the new policy will help reduce importation of sugar into the country and make Ghana a net exporter.

 Mr. Samuel Anum, United Nations Industrial Development Organisation (UNIDO) Capacity Building Projector Coordinator who took stakeholders through the policy, said drawing from the existing sugar policies of some producing countries and situational analysis of the Ghanaian context, eight strategic objectives were identified to comprise the Ghana National Sugar Policy.

 These are: the provision of land, infrastructure development, human resource development, and processing and manufacturing.

 Others are research and development, financing and tax-framework, institutional capacity development and legal and regulatory framework.

Meeting these strategic directions, he said, will require solving challenges across many ministries, departments, and agencies.

 “From this Ghana National Sugar Policy, a Sugar Policy Delivery Unit has been established with the remit and authority to coordinate the implementation of this Policy across Ministries Department and Agencies,” Mr. Anum said.

“The Policy Delivery Unit will also provide support services to investors, coordinate state requirements of investors, and ensure that the Ghana National Sugar Policy addresses sugar investments,” he said.