The National Export Development Strategy (NEDS) has outlined plans to revive and boost the country’s underutilised iron and steel industry in a move to bring revenue of more than US$5billion over the next 10 years that the programme will be in existence.

Current export earnings from iron and steel products were around US$127.7million as at the end of 2018 – a figure implementer of the NEDS, Ghana Export Promotion Authority (GEPA), wants to increase to US$251million by end of this year.

However, the industry is beset with setbacks – such as the absence of an iron-ore mining and smelting industry that will provide adequate local raw material to feed the iron and steel industries; and inability to utilise a significant proportion of installed capacity owing to scarcity of raw materials.

Others include the absence of rail transport to the northern and other parts of the country to facilitate transportation of products from iron-ore mines to smelters and steel mills; high cost of electricity and water; and inadequate enforcement of standards, regulations and laid-down tariff guidelines on imported iron and steel products.

These have blighted prospects and the possible optimum gains the industry can add to the economy. It is against this backdrop that NEDS has intervened with strategies such as expediting action on development of an integrated iron and steel industry from iron-ore mining to manufacturing iron and steel products; assisting firms to develop measures that enhance competitiveness of the iron and steel sector through cost-reduction and other strategies; and deploying tariff instruments to safeguard and protect the local iron and steel industry.

Other strategies are: promoting investments, including Foreign Direct Investments (FDIs), into iron and steel production; providing incentives and cost-reduction packages for companies that venture into manufacturing tertiary iron and steel products; and promoting locally-made iron and steel products in the sub-regional and other African markets.

The NEDS further leverage the existing and rising demand for iron and steel products across Africa, and regional trade agreements like the ECOWAS Trade Liberalisation Scheme (ETLS) and African Continental Free Trade Area (AfCFTA) to facilitate international market access for Ghana’s iron and steel product exports.

The programme will also take advantage of the country’s well-established existing iron and steel industry, with over five decades’ history of converting scrap-metal and other raw material into value-added iron and steel products; and availability of skilled labour to improve fortunes and achieve the 10-year set target.

To kick-start the programme, a new US$80million iron and steel factory has been commissioned at Kpone in the Ningo Prampram district of the Greater Accra Region. The factory, which is a beneficiary of government’s One-district, One-factory (IDIF) initiative, has the capacity to produce 60,000 tonnes of prefabricated iron and steel products annually, to serve the needs of industries in the country and West Africa.

According to GEPA, the iron and steel industry employs about 4,500 direct workers and 17,000 indirect workers. The installed capacity of the local steel industry is about 1,000,000 metric tonnes per annum against an annual average demand of about 350,000 metric tonnes per annum, resulting in a surplus of 650,000 metric tonnes per annum.

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