Business News of Wednesday, 30 October 2013

Source: Daily Guide

Scrap dealers want ban relaxed

The Concerned Scrap Dealers Association has called on government to expedite action on the amendment process that will relax the wholesale ban on the exportation of scrap metals.

According to the Association, due to the enforcement of the ban, five local steel industries operating in Tema were exploiting the scrap dealers. Kamal Deen Sanni, Spokesperson for the Association, stressed the need for government to relax the ban to improve their businesses.

According to him, many members, who are being chased by debtors, had been rendered jobless as a result of the implementation of the ban. Deen Sanni said, “We are reminding the Minister for Trade and Industry, Haruna Iddrisu to make do the promise he made to us over the relaxation of the wholesale ban on the exportation of scrap metals.

He said, “At our last meeting with the Minister and the Association of Steel Manufacturers, he gave directives for an amendment bill to be presented to Parliament for the relaxation of the ban if it resumes in October. “By this statement, we are calling on him to kick-start the amendment process for the subsequent relaxation of the ban,” he added.

Deen Sanni said the Association was not against government’s efforts to protect local steel industries but the local scrap industry must also be made lucrative to stop the monopoly of the Ghanaian, Indian and Jordanian steel manufacturers operating in the country.

He said government must allow its members to export steel balls, ductile steel, manganese, among others, which the local steel manufacturers cannot melt.

Deen Sanni said, “As the law stands, several materials are being rejected by the five local steel industries operating in Tema, namely Western Steel, Ferro Fabrics, Special Steel, Tema Steel Works and Sentuo Steel and their payment for materials supplied them are fraught with long delays.”

He called on the Minister to set up a team to look at the exportation of scrap metals, which are not needed by local steel industries to fetch foreign exchange for the country.

Ghana is among five nations in the sub-region which have banned the exportation of ferrous scrap metals in order to strength their respective local steel industries. The country enforced the ban after Parliament passed the law on March 25, 2013.