Cape Coast, April 16, GNA - South Africa is to establish a sugar factory in northern Ghana after a report on feasibility studies had been completed for work to begin.

Mr Rapu Sidney Molekene, South African High Commissioner to Ghana announced this during a courtesy call on Nana Ato Arthur, Central Regional Minister on Monday as part of his two-day visit to the region. He said plans where advanced to explore "downstream Agriculture in Ghana" and South African Companies would be encouraged to establish factories in Ghana.

Mr Molekene said the factories would undertake food processing especially pineapple and mango because Ghana had suitable climate for their cultivation.

On the energy crisis in Ghana, he said it was not peculiar to Ghana and that South Africa had similar problems and stressed the need for the Government to explore other sources of generating energy and not depend solely on hydropower.

"The use of waste to generate bio-fuel and nuclear energy are other alternative sources of energy that could be explored," he added. Mr Molekene commended Ghana for her role in South Africa's independence and pledged that efforts would be made to sustain the cordial relationship that had existed between them.

He announced that a bilateral agreement would be signed during the African Union Summit scheduled for Ghana this year. Mr Molekene said plans were advanced to establish a twin-sister relationship between Cape Coast Municipality and Nelson Mandela Municipality in South Africa because both had a lot in common. He said about 40 South African Companies had invested in Tourism and ICT in Ghana.

Nana Arthur appealed for assistance to revamp the Komenda Sugar Factory and Pomadze Poultry Farm near Winneba. He called on investors to invest in waste management in the region and if possible used to generate electricity. Mr Molekene also called on Ms Mercy Arhin, Cape Coast Municipal Chief Executive.

He is scheduled to call on Osabarima Kwesi Atta II, Oguamanhene on Tuesday.