Ghana News Agency (Accra) – The International Finance Corporation (IFC), a member of the World Bank Group, has announced a US$12 million loan to Rider Iron and Steel Ghana Ltd to support the company’s construction of a steel manufacturing plant.
A statement from the IFC said that when completed in 2021, the factory would produce about 240,000 tonnes of steel products annually, mostly using locally sourced scrap steel.
“The plant will increase Ghana’s current production by more than 75%,” the statement 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.”
Energy-efficient furnace
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.
Walid al-Alami, managing director of Rider Steel, said: “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 will operate with an energy-efficient induction furnace, and use steel scrap as the main ingredient, reducing its carbon footprint compared to steel made from iron ore, the statement said.
In the past ten years, IFC has provided over $4 billion of financing and advisory services in Ghana for the agribusiness, education, energy, transport, tourism and other sectors.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.
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