President John Dramani Mahama has secured a notable $200 million investment from the Olam Group, a leading global food and agribusiness company, to fund several key projects in Ghana, including a pasta production plant scheduled to open in 2026.

The investment, announced by the company’s Co-founder and Group CEO, Mr. Sunny Verghese, will be rolled out over six years. This major capital injection, secured during President Mahama’s state visit to Singapore, will also support the development of feed processing facilities for poultry and aquaculture.

According to Mr. Verghese, these initiatives will help stabilize the Ghanaian cedi by reducing the country’s dependence on imports.

President Mahama expressed the government’s full support for the projects, assuring the Olam Group that his administration will work closely with the company to provide the necessary incentives and assistance to ensure their successful completion.

Durum wheat semolina or flour, water, and optional additives such as eggs or vegetable puree are among the raw materials needed for pasta production. While a few countries, such as Ethiopia, are able to cultivate wheat suitable for pasta, most African nations continue to rely heavily on imports. Projections indicate that pasta imports across the continent could reach $64 million by 2026. Expanding local production would therefore reduce this dependence, cut transport costs, and make prices more competitive.

A publication on the National Library of Medicine website notes that "Ethiopia is the second largest producer of wheat in Africa (next to Egypt) and produces 5.5 Mt of wheat, which is equivalent to 21.7% of wheat produced and 18.3% of wheat area harvested in Africa."

In 2024, Olam Agri, a global player in food and agribusiness, began construction of a modern pasta production facility at its wheat milling factory in Kpone, near Tema, in the Greater Accra Region.

The groundbreaking ceremony drew several dignitaries, including former Deputy Minister for Trade and Industry, Hon. Michael Okyere Baafi, then-Deputy Minister for Transport, Honourable Frederick Obeng Adom, and traditional leaders of the Kpone municipality.

In attendance were past Chief Executives and representatives from the Ghana Revenue Authority (GRA), the Ghana Investment Promotion Centre (GIPC), the Food and Drugs Authority (FDA), the Ghana Chamber of Commerce, as well as key institutions such as the Ghana Police Service, the Ghana National Fire Service, and the Ghana Water Company.

Speaking through his Deputy, the former Minister for Trade and Industry, K. T. Hammond, highlighted Ghana’s reliance on pasta imports from countries such as Turkey, Italy, China, and South Africa despite pasta’s growing popularity in local homes.

“I am therefore happy to note that Olam Agri as a business is taking advantage of this opportunity to establish this state-of-the-art pasta plant reflecting the company’s commitment to transforming Ghana’s food industry. This facility is expected to meet the growing demand for pasta locally, supporting the government’s import substitution and job creation agenda,” K. T. Hammond said.

He further emphasized the role of the private sector in Ghana’s industrialisation agenda, commending Olam Agri for setting standards in agribusiness, from flour production to support for local rice farmers. He noted that the company’s consistency in quality is evident in the success of household brands such as Mama Gold and Royal Feast.

Country Head of Olam Agri in Ghana, Baibhav Biswas, said the company’s 30 years of operations in Ghana have been marked by significant investments in infrastructure and human resource development.

“Our 30 years’ presence in Ghana has been characterised by significant investments in infrastructure and human resources development. This facility is a testament to our dedication to the country and our effort to contribute positively towards its economic development and food security. This new facility aligns with Olam Agri’s broader strategy of strengthening its position in the African food market,” he said.

Mr. Biswas expressed appreciation to stakeholders for supporting Olam Agri’s activities and for fostering a business-friendly environment.

“As our Grains business continues to grow and evolve, it remains dedicated to providing quality flour products to Ghanaians. Our commitment to community development and sustainability has solidified our position as a trusted partner in the region’s food industry,” he added.

The former Commissioner-General of the Ghana Revenue Authority, Ms. Julia Esiam, congratulated Olam Agri on behalf of the Commission and assured the company of GRA’s continued collaboration.

“The groundbreaking of this new facility will open doors to further opportunities for growth and development. This sets the stage for future achievement, innovation, and progress,” Ms. Esiam said.