Ghana’s Rider Iron secures US$12m from IFC to fund steel manufacturing plant construction

GHANA – Rider Iron and Steel Ghana Limited has secured a US$12 million loan from IFC to support the company’s construction of a steel manufacturing plant in Kumasi, Ghana’s second largest city.

IFC in a statement said the steel manufacturing plant will increase Ghana’s domestic steel production, creating thousands of direct and indirect jobs. 

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.

IFC, the factory’s main financier, is a sister organization of the World Bank and is the largest global development institution focused on the private sector in emerging markets.

The development financial institution works with more than 2,000 businesses worldwide, using its capital, expertise, and influence to create markets and opportunities where they are needed most.

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. 

In the past 10 years, IFC has provided over US$4 billion of financing and advisory services in Ghana for agribusiness, education, energy, transport, tourism, and other sectors.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.