The International Finance Corporation (IFC), the private sector investment wing of the World Bank Group, has announced a loan of 12 million U.S. dollars to finance the construction of a 240,000 tons capacity steel plant in Kumasi, Ghana’s second-largest city.
IFC said here on Wednesday that the plant to be built by Rider Steel Company Limited, a steel manufacturing firm in Ghana, would increase domestic steel production by more than 75 percent.
“The plant will 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,” IFC said
The new plant will operate with an energy-efficient induction furnace, and will use steel scrap as the main ingredient, reducing its carbon footprint compared to steel made from iron ore, said the financiers.
“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 Country Manager for IFC Ronke Ogunsulire said.
The Director for Rider Steel, Walid Al Alami described IFC’s support as a game-changer to propel the company’s ability to meet local demand and support many other businesses along the way, and reduce the country’s steel import bill by 125 million dollars.
Ghana’s dependence on used vehicles, machinery, office equipment, and home appliances creates a large stock of scrap metals across the country.
IFC said it has provided over 4.0 billion dollars of financing and advisory services in Ghana for agribusiness, education, energy, transport, tourism, and other sectors over the past decade. Enditem