Scrap export ban to generate $300m annually – President Mahama

President John Dramani Mahama has projected that Ghana’s restriction on non-ferrous scrap exports will generate between $250 million and $300 million annually from processed metal exports, as government deepens efforts to move the country up the industrial value chain.

Speaking at the commissioning of the Phase Two expansion of the B5 Plus steel manufacturing facility in Ningo-Prampram, the President said the policy is designed to ensure raw material security for local industries and strengthen Ghana’s industrial base.

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

According to him, Ghana generates substantial volumes of scrap metal each year through construction, demolition, vehicle imports and industrial activity. However, exporting scrap in its raw state deprives local manufacturers of critical inputs needed for value addition.

“By restricting non-ferrous scrap exports, government is ensuring that local processors have priority access to raw materials for production,” he said.

Boosting Exports, Jobs and Revenue

President Mahama explained that the policy is expected to significantly boost processed metal exports and expand employment opportunities within the manufacturing sector.

“This policy of banning non-ferrous scrap exports is expected to boost processed metal exports by between $250 million and $300 million annually,” he announced. “It will also create between 5,000 and 10,000 new jobs.”

He added that the move would increase tax revenues through Value Added Tax (VAT), corporate income taxes and Pay As You Earn (PAYE) contributions from newly created jobs.

The President emphasized that the strategy forms part of a broader economic transformation agenda focused on value addition rather than raw material exports.

“We are moving up the value chain. We are exporting finished and semi-finished products, not raw scrap,” he declared.

Strengthening Industrial Sovereignty

President Mahama linked the scrap export restriction to Ghana’s wider industrialisation drive, including import substitution and foreign exchange conservation.

“The expansion of domestic steel production strengthens our capacity to substitute imports, save foreign exchange, improve our trade balance and stabilize supply chains,” he said. “This is what industrial sovereignty is about.”

He noted that reducing steel imports by even 20 to 30 percent annually could save Ghana hundreds of millions of dollars in foreign exchange.

Regional Opportunity Under AfCFTA

As host of the African Continental Free Trade Area (AfCFTA) Secretariat, President Mahama said Ghana is strategically positioned to serve the West African and continental markets with competitively manufactured steel products.

“Instead of importing steel from Asia or Europe, West Africa can source competitively from Ghana’s manufacturers,” he said. “Regional trade must move beyond speeches and communiqués. It must translate into factories exporting to neighbouring countries.”

With Africa projected to require over $100 billion annually in infrastructure development, the President said strengthening domestic steel production will enable Ghana not only to meet its own infrastructure needs but also supply the wider sub-region.

“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,” he stated.