Scrap metal dealers in Ghana are intensifying calls for government intervention to regulate the industry, citing escalating criminal activities they say threaten both legitimate businesses and public infrastructure.
Stakeholders argue that the absence of a structured framework has allowed theft of metals, including critical government assets like electrical cables, to flourish under the guise of informal trade.
The scrap metal sector, a vital source of raw materials for local fabrication industries, handles materials such as copper, aluminum, and iron, which are repurposed into construction supplies like roofing sheets. Yet industry representatives stress that unchecked operations have enabled bad actors to exploit regulatory gaps, undermining the sector’s credibility. “Without clear rules, criminals steal metals and sell them illegally, damaging trust in our work,” one dealer said during a forum organized by the Ghana Integrated Iron and Steel Development Corporation (GIISDEC).
The dialogue highlighted dual challenges: rampant theft and meager profits for collectors. Dealers described grueling efforts to gather and transport materials, only to receive low payments from buyers. “The prices don’t reflect our labor. It’s disheartening,” another participant noted. These concerns come as local steel mills struggle to absorb rising scrap volumes, further squeezing margins.
GIISDEC CEO Williams Okofo-Dateh confirmed plans to introduce a licensing system and tighter oversight to curb illegality. He cited instances of companies illegally melting down stolen government cables to produce roofing materials. “Such practices harm the economy and must be stopped,” he asserted, emphasizing that reforms aim to safeguard honest operators rather than hinder their work. “Regulation will protect livelihoods and national interests,” he added, urging dealers to collaborate with authorities.
The push for regulation reflects broader tensions in balancing informality with economic growth in emerging markets. Ghana’s scrap metal trade, like similar sectors globally, faces pressure to formalize as governments seek to protect infrastructure and boost revenue. While heavy-handed policies risk displacing small-scale traders, unstructured markets leave room for crime and exploitation. Ghana’s approach, focusing on licensing and monitoring, mirrors strategies seen in nations like Kenya and South Africa, where registration systems have reduced metal theft but sparked debates over accessibility for informal workers.
As Ghana moves to structure this fragmented yet critical industry, stakeholders await tangible steps to ensure fairness and security. Success hinges on aligning enforcement with support for collectors navigating an evolving landscape, a challenge demanding nuance in policy and practice.
