Ghana gets new $40m pasta factory

Ghana's push to become an industrial hub in the West African sub-region has been given a fillip with the launch of a $40m pasta manufacturing plant by Olam Agri at Kpone, near Tema in the country's Greater Accra Region.

The 60,000 capacity factory is expected to produce up to 40% of Ghana's pasta needs. Currently, that demand is met entirely by imports, with an estimated bill of $140m between 2021 and 2024, second only to Togo on the continent.

Baibhav Biswas, Olam Agri's country head, described the new plant as a milestone for the country's food manufacturing sector.

"From today, every packet of pasta consumed in Ghana can be produced locally by Ghanaian talent, on Ghanaian soil," he said, adding that "it strengthens domestic manufacturing capacity, builds technical expertise and ensures that more of the value generated by local consumer demand stays within the Ghanaian economy."

Work on the factory, which began in 2024, was completed ahead of the 18-month target date, with 300 direct and almost 1,000 indirect jobs created. Biswas praised the government of Ghana for their support, which he said had been instrumental in the success of the project.

Pasta to drive import substitutio

Designed with advanced processing technology, the Kpone plant will produce fortified pasta products including premium spaghetti, macaroni and other varieties. Olam Agri already operates the country's largest wheat milling operation in Tema in addition to a range of food and agricultural businesses spanning rice, cocoa, grains and other staples.

Sunny Verghese, co-founder and group chief executive officer of Olam Agri, Ghana remains a key pillar of the company's African strategy.

"Our confidence in the nation has grown year after year, and the investment we are commissioning today reflects our belief in Ghana as a hub for growth, trade and sustainable value."

"Our mission is to produce more food, feed and fibre to meet the needs of a growing population, while ensuring that this expansion does not destroy the planet but safeguards biodiversity, water resources and the environment for future generations," he said.

Minister for trade, agribusiness and industry, Elizabeth Ofosu-Adjare, said the plant would not only help reduce the country's dependence on imported pasta but could also position Ghana as a potential exporter of processed food products within the West African sub-region.

"Every metric tonne of pasta produced in Tema represents import substitution, a dollar preserved in our foreign reserves and a new employment opportunity for Ghanaians," she said. The government expects and is encouraging investors in the country to shift from trading to manufacturing and value addition, she stressed.

The minister also encouraged Olam Agri to collaborate with Ghana's crop research institutions to develop wheat varieties suitable for local cultivation. Such efforts, she noted, would complement the government's Feed the Industry programme, which aims to strengthen linkages between agriculture and manufacturing by ensuring that factories increasingly rely on locally produced raw materials.

Ghana breaks ground on new projects

The Olam plant joins a series of new industrial investments in the country. Earlier, President John Mahama cut the sod for the construction of a $250m float glass manufacturing facility at Shama in the Western Region, a project expected to become one of the largest glass plants in Africa when completed. The president also commissioned a $110m calcined clay cement plant at the Tema Free Zones Enclave, which uses innovative technology to reduce clinker usage and lower carbon emissions in cement production.

Along with the Olam Agri facility, these projects illustrate a broader strategy to deepen Ghana's industrial base, encourage value addition and reduce the country's import bill. The government is keen to demonstrate that this is in alignment with its industrial strategy, particularly the nascent 24-hour economy initiative, which aims to stimulate continuous industrial activity and position Ghana as a regional manufacturing hub for West Africa.

President Mahama, who was the special guest of honour, said projects such as the Olam plant show how policy objectives translate into tangible results.

"Our policies only matter when they lead to actual factories, real jobs and tangible production on the ground," he argued, adding that "facilities of this nature generate benefits that go beyond the factory itself. They strengthen connections across the economy and support the development of technical skills within our manufacturing sector."