This archive report was first published on 20 July 2020.
On July 20, 2020, the International Finance Corporation (IFC) made a significant move to support Ghana's steel industry by issuing a $12 million loan to Rider Iron and Steel Ghana.
The loan aims to increase Ghana's domestic steel production, thereby creating direct and indirect jobs. The new steel manufacturing plant will operate with an energy-efficient induction furnace, using steel scrap as the main ingredient, thus reducing its carbon footprint compared to steel made from iron ore.
Once complete, the factory will produce roughly 240,000 tons of steel products annually using mostly locally sourced scrap steel, increasing Ghana's current production by more than 75%. This significant increase in production will support Ghana's balance of trade by reducing imports and conserving foreign exchange by approximately $125 million annually at current prices.
The plant is expected to create about 450 direct jobs and generate more than 13,000 indirect jobs in the value chain, mostly among individuals and micro-enterprises engaged in scrap collection.
