- The IFC has provided a loan of $12 million to support the operations of Rider Iron and Steel Ghana Limited
- The support is expected to result in the creation of about 450 direct and over 13 000 indirect jobs in the value chain
- It is also expected that the factory will produce about 240 000 tonnes of steel every year when it is complete in 2021
Our Manifesto: This is what YEN.com.gh believes in
The International Finance Corporation (IFC), a subsidiary of the World Bank, has supported a steel plant in Kumasi with a $12 million loan.
Rider Iron and Steel Ghana Limited is expected to use the loan to support skills and create jobs.
YEN.com.gh understands that the funds will be diverted in the areas of increased domestic steel production and the creation of thousands of direct and indirect jobs.
READ ALSO: 2020 Q1: Gov't's revenue falls by about GHc3.5bn; importers express fears
Per a report by thebftonline.com, the factory is expected to produce about 240 000 tonnes of steel every year when it is complete in 2021.
The plant is expected to increase current production by over 75% and this would be done mostly with the use of locally sourced scrap steel.
It is expected that the steel plant will create about 450 direct and over 13 000 indirect jobs in the value chain.
This would be focused primarily on individuals and micro-enterprises focused on the collection of scrap material.
Information available to YEN.com.gh shows that the new plant will operate with an energy-efficient induction furnace and will use scrap steel as the main ingredient, thus reducing its carbon footprint compared to steel made from iron ore.
It is hoped that an increase in domestic steel production will lead to a fall in imports and consequently help conserve foreign exchange.
Details show that this would be in the region of $125 million every year at current prices and will therefore help support Ghana’s balance of trade.
In other news, African countries have been cautioned against the misuse of funds borrowed from the international community.
The African Development Bank (AfDB) noted that several African countries are likely to be plunged into distress if corrective measures are not adopted with regard to the use of funds.
It stated that countries that access such funds need to channel them into developmental projects that will yield returns.
READ ALSO: June 2020 earthquake: Parliament approves GHc1.6m tax waiver for devices
Enjoyed reading our story? Download YEN's news app on Google Playstore now and stay up-to-date with major Ghana news!
Want to be featured on YEN.com.gh? Send us a message on our Facebook page or on Instagram with your stories, photos, or videos.