GOVERNMENT requires an amount of $2.3 billion as a short-term investment to modernise the Volta Aluminium Company (VALCO), the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, has disclosed.
The move would transform the underperforming state enterprise to boost industrialisation and create more jobs in the country.
During a recent visit to the VALCO facility in Tema on Tuesday (October 29), Mr Buah, stressed the critical need to revitalise what he described as “a sleeping lion” that held immense potential for Ghana’s industrialisation agenda.
Challenges
He said the company was currently operating at a mere 23 per cent capacity, a situation he attributed to significant infrastructural deficiencies that had severely affected efficiency and profitability.
“They have five pots and all the five pots must be working, barely two pots are working and that makes the use of energy very inefficient,” he stated.
Addressing the company’s energy challenges, Mr Buah indicated that plans were underway to transition to natural gas, a move expected to significantly improve operational efficiency.
He highlighted the success of initial value addition efforts as evidence of what could be achieved with proper investment and modernisation.
“The first phase of the value addition that has been done is translating into all the things you are seeing here.
It shows clearly that this is a sleeping lion that we must all work hard to bring up,” Mr Buah.
The Minister explained that the government’s engagement with VALCO was not just about addressing current problems but unlocking the company’s vast potential to drive economic transformation in Tema and beyond.
“We are not here to talk about VALCO’s problem but the future we see, the potential of VALCO, and I think we are telling the world that VALCO is really a powerhouse that can really change the economy of Tema and the country,” he said.
Impact
The sector minister said the modernisation plans were expected to yield substantial employment benefits.
He said currently, VALCO employs about 800 workers despite operating at significantly reduced capacity, therefore adding additional pots could create over 5,000 direct jobs and 25,000 indirect employment opportunities.
“The potential here is huge. We were talking about even adding an additional pot, a translation of over 5,000 direct and indirect, or over 25,000 you know, how much life in Tema will look like.
That is a dream and I think that if we really want to create jobs, we have to do it here,” he added.
Collaboration
The Minister stressed that the government was moving beyond mere discussions to concrete action, with several proposals currently under consideration.
“We don’t want to do the talk shop anymore. We really want to get to the chase to see the things that we can practically start and see what we can work with others,” he stated, adding that the administration is working to attract committed investors.
He assured stakeholders that the ministry was collaborating with the Ghana Integrated Aluminium Development Corporation (GIADEC) and VALCO management to find sustainable solutions for value addition and industrial growth.
“The reset agenda has come to VALCO, and we have to work very hard. I can assure you that we work day and night with the team here for us to find a break that cycle and the hurdles to modernise the dream of our country that will create jobs,” he said.