The IFC (International Finance Corporation) has issued a $12 million loan to Rider Iron and Steel Ghana to support the company’s construction of a steel manufacturing plant. The move seeks to increase Ghana’s domestic steel production, thereby creating direct and indirect jobs.
The new plant will operate with an energy-efficient induction furnace, using steel scrap as the main ingredient, thus reducing its carbon footprint compared to steel made from iron ore.
Once complete, the factory will produce roughly 240,000 tons of steel products annually using mostly locally sourced scrap steel, increasing Ghana’s current production by more than 75%.
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.
Furthermore, increased domestic steel production from the new plant will support Ghana’s balance of trade by reducing imports and conserving foreign exchange by approximately $125 million annually at current prices.