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Business News of Saturday, 18 July 2020

Source: GNA

IFC provides US$12 million to Ghanaian steel company to construct factory

IFC, a member of the World Bank Group, has announced a US$12 million loan to Rider Iron and Steel Ghana Limited to support the company’s construction of a steel manufacturing plant.

The factory to be sited in Kumasi would help increase Ghana’s domestic steel production, create thousands of direct and indirect jobs.

A statement from IFC said when completed in 2021, the factory would produce about 240,000 tonnes of steel products annually, using mostly locally sourced scrap steel.

"The plant will increase Ghana’s current production by more than 75 percent," it said.

"Increased domestic steel production from the new plant will reduce imports and help conserve foreign exchange by approximately $125 million annually at current prices, supporting Ghana’s balance of trade".

The statement said the plant would 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.

The statement quoted Walid Al Alami, the Director of Rider Steel, as saying: “This capital injection from IFC is a game-changer, not just for Rider Steel, but for the industry and Ghana. The loan will propel us to help meet domestic demand and support many other businesses along the way.”

Ronke Ogunsulire, IFC Country Manager for Ghana, said, “We are pleased to support Rider Steel, and contribute to job creation, local skills development, and economic growth in Ghana, especially at a time when the global economy is facing serious challenges.”

The new plant would operate with an energy efficient induction furnace, and would use steel scrap as the main ingredient, reducing its carbon footprint compared to steel made from iron ore, the statement said.

In the past 10 years, IFC has provided over $4 billion of financing and advisory services in Ghana for agribusiness, education, energy, transport, tourism, and other sectors.

IFC, a sister organisation of the World Bank and member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.

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