IFC further revealed that, upon completion, the factory will produce roughly 240,000 tons of steel products annually using mostly locally sourced scrap steel.
The plant which is expected to be ready by 2021 will increase Ghana’s current 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.
“This capital injection from IFC is a game-changer, not just for Rider Steel, but for the industry and Ghana,” Rider Iron and Steel Director, Walid Al Alami, said.
Alami further noted that the loan will enable Rider Steel 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 will use steel scrap as the main ingredient, reducing its carbon footprint compared to steel made from iron ore.
Increased domestic steel production from the new plant is also expected to reduce imports and help conserve foreign exchange by approximately $125 million annually at current prices, supporting Ghana’s balance of trade.