WAMCO calls for $7m investment to revive Sekondi Plant

The West Africa Mills Company (WAMCO) has called on the government to support the rehabilitation of its dormant processing facility in Sekondi to fully leverage the country’s new cocoa retention policy and boost local value addition in the cocoa sector.

The appeal comes on the back of the 50 percent cocoa retention policy introduced by President John Dramani Mahama, which has been welcomed by cocoa processing companies as a step toward strengthening Ghana’s domestic processing capacity.

Deputy Managing Director of West Africa Mills Company, Dr. Boakye Danquah, said revamping the company’s second processing plant, known as WAMCO Two, would significantly increase production and position the company to benefit from the policy.

Speaking during a working visit by the Western Regional Minister, Joseph Nelson, Dr. Danquah appealed for government support and private investment estimated at between $5 million and $7 million to retool the facility.

WAMCO, established in 1949, is the first cocoa processing company in Ghana. The Government of Ghana, through Ghana Cocoa Board, holds a 40 percent stake in the company.

The firm operates two processing facilities, WAMCO One and WAMCO Two, with a combined installed capacity of about 60,000 metric tons of cocoa annually. However, production has declined significantly in recent years due to operational challenges.

Currently, WAMCO Two, which accounts for half of the company’s installed capacity of 30,000 metric tons, has become redundant because of technical problems and the shortage of raw cocoa beans.

As a result, the company relies solely on WAMCO One, which also has a capacity of 30,000 metric tons, but is operating at only about 30 percent capacity due to limited cocoa bean supply.

Managing Director of WAMCO, Frank Bednar, welcomed the government’s cocoa retention policy, describing it as a critical step toward boosting local value addition and increasing revenue within the cocoa value chain.

He noted that strengthening domestic processing capacity would not only improve export earnings but also create more jobs within the industry.

Dr. Boakye Danquah further stressed that reviving WAMCO Two would play a significant role in the economic revitalisation of Sekondi-Takoradi while safeguarding more than 200 direct jobs.

Responding to the concerns, the Western Regional Minister, Mr. Nelson, assured management of the government’s readiness to support initiatives aimed at restoring the company’s operational strength.

He reaffirmed the government’s commitment to policies that promote industrial recovery, enhance cocoa processing capacity and stimulate economic activity in the Western Region.

Industry observers believe that revitalising idle cocoa processing facilities like WAMCO Two could help Ghana maximise the benefits of the new retention policy and strengthen the country’s position in the global cocoa value chain.

 

 

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