Mahama commissions “B5 Plus” phase two, signals Ghana’s industrial shift

President John Dramani Mahama has declared that the Phase Two expansion of B5 Plus Steel Manufacturing Facility marks a decisive shift in Ghana’s economic transformation agenda  from raw material exports to value-added industrial production.

Speaking at the commissioning ceremony on Friday February 20, 2026, President Mahama said the expansion represents “not just the growth of a factory, but the expansion of Ghana’s industrial ambition.”

“This is part of a broader structural shift in our economy from dependence on raw material exports to value-added industrial production,” he stated.

Cutting Steel Imports, Saving Forex

President Mahama noted that Ghana’s annual steel demand exceeds 1.2 million metric tonnes, driven largely by construction, mining, energy infrastructure and manufacturing.

Historically, a significant portion of that demand has been met through imports, placing pressure on Ghana’s foreign exchange reserves.

“The expansion of this facility strengthens domestic capacity to substitute imports, save foreign exchange, improve our trade balance and stabilize supply chains,” he said.

According to him, reducing steel imports by even 20 to 30 percent annually could save Ghana hundreds of millions of dollars.

“This is what industrial sovereignty is about,” he emphasized.

Ghana Positioned as Regional Steel Hub

The President highlighted Ghana’s strategic advantages — political stability, deep-water ports in Tema and Takoradi, expanding energy infrastructure, and hosting the African Continental Free Trade Area (AfCFTA) Secretariat.

With a continental market of 1.4 billion people and a combined GDP exceeding $3 trillion gradually opening up, Mahama said steel manufactured in Ghana can supply ECOWAS construction markets, Sahelian infrastructure projects, and mining operations across West Africa.

“Instead of importing steel from Asia or Europe, West Africa can source competitively from Ghana’s manufacturers. This is regional value chain integration in real practice,” he stated.

Scrap Export Ban to Boost Processed Metal Exports

President Mahama reaffirmed government’s policy restricting non-ferrous scrap exports to ensure local manufacturers have access to raw materials.

“For too long, a significant portion of our scrap metal has been exported in its raw form. Industrial capacity requires raw material security,” he said.

He projected that the policy could boost processed metal exports by between $250 million and $300 million annually, create between 5,000 and 10,000 jobs, and increase tax revenues through VAT, corporate taxes and PAYE.

He commended B5 Plus for its tax compliance, revealing the company has paid over GH¢300 million in taxes and is projected to exceed GH¢500 million soon.

“They are very good taxpayers. But they say the audits are too many. If you audit once in a while, it is okay — you cannot come and audit every year,” he remarked.

Infrastructure as Industrial Strategy

Linking industrial expansion to government’s Big Push Infrastructure Programme, the President said massive investments in roads, railways, bridges, energy transmission lines, affordable housing and industrial parks will drive steel demand.

“All these require iron and steel. If Ghana develops a strong steel base, we will not only build our own roads and bridges — we will supply steel to the whole sub-region. This is how infrastructure becomes industrial strategy,” he said.

Africa, he noted, requires over $100 billion annually in infrastructure investment, with West Africa facing significant deficits.

24-Hour Economy to Power Industry

President Mahama also announced that the 24-Hour Economy Authority Bill has been signed into law, with B5 Plus expected to be among the first companies to register under the initiative.

Steel production, he explained, benefits from continuous operation to improve furnace efficiency, reduce energy wastage and lower production costs.

The 2026 Budget has allocated GH¢110 million to operationalise the 24-hour economy programme.

“When factories run three shifts instead of one, employment rises, productivity increases and exports expand,” he said.

Fiscal Reforms to Support Manufacturers

The President outlined key fiscal reforms in the 2026 Budget to support industry, including:

Abolition of the COVID-19 Health Recovery Levy

Reduction of the effective VAT rate from 21.9% to 20%

Introduction of digital VAT monitoring systems

Review of income tax, customs and excise regimes

“Predictable tax policies lower uncertainty and reduce operational costs. Industrial investors must compete on productivity, not navigate unpredictability,” he stressed.

Industrialization and Skills Development

President Mahama emphasized that industrialization deepens skills development and creates employment across engineering, logistics, technical services and vocational training.

“At full capacity, facilities such as this create direct factory employment, technical and engineering jobs, transport and logistics opportunities, and apprenticeship programmes,” he said.

He also urged parties involved in land litigation near the facility to resolve disputes quickly to allow further expansion.

A Signal of Ghana’s Direction

“As host of the AfCFTA Secretariat, Ghana has a responsibility to demonstrate that continental integration can deliver tangible results,” Mahama stated.

“Regional trade must move beyond speeches and communiqués. It must translate into factories exporting to neighbouring countries.”

Declaring the second phase expansion duly commissioned, the President concluded: