Scrap metal dealers licensing good step
It is refreshing to learn that the Ghana Integrated Iron and Steel Development Corporation (GIISDEC) is taking a major step to license and regulate the activities of dealers in scrap metal in the country.
The corporation, which was established by the Ghana Integrated Iron and Steel Development Act, 2019 (ACT 988) to develop and promote an integrated iron and steel industry, is taking that step to sanitise the scrap metal space and to guarantee reliable supply of raw materials for local production.
As explained by the Chief Executive Officer (CEO) of GIISDEC), William Okofo-Dateh, the corporation was on the verge of concluding a nationwide stakeholder engagement with players in the scrap metal value chain on the imminent licensing regime.
According to the roadmap for the historic policy, the licensing process will be completed this year, and all players in the scrap metal value chain, including collectors, aggregators, buyers, agents, brokers and manufacturers, are required to register with GIISDEC to be given a licence to operate.
What this means is that effective January, 2026, anyone without a licence cannot trade in scrap metal in the country as that will be considered an illegality to which sanctions will apply.
This policy is being implemented at a time the scrap metal business in Ghana is fraught with a myriad of challenges, with the scrap dealers being in the news for all the bad reasons.
The scrap metal business is a huge industry that employs hundreds of people and provides livelihood to an estimated 100,000 people across the country.
However, the modus operandi of the collectors of scrap metal raises issues of public safety as well as environmental and health risks.
For instance, for many years, the dealers in scrap metal at the scrapyard at Agbogbloshie openly burn electronic waste (e-waste) in their desperate attempt to extract useful matter such as copper and iron.
Their activities leave the Agbogbloshie area and other parts of Accra inundated with heavily polluted air that poses health risks to people.
Again, many collectors of scrap metal have gained notoriety for the removal of the metal component of drains, bridges and other road infrastructure, while others deliberately steal metal parts from homes and organisations.
It is in the light of this that the Daily Graphic finds the steps being taken by GIISDEC to license and regulate the activities of operators in the scrap value chain as one in the right direction.
We believe that a well-regulated scrap sector will help to curb the phenomenon of indiscriminate burning of e-waste; help reduce environmental pollution by ensuring that scrap metal is handled and disposed of in an environmentally responsible manner; help conserve natural resources and reduce the need for primary metal production; eliminate the incidents of theft of metal components from road infrastructure; and ensure effective management of the scrap value chain.
This is especially so when GIISDEC intends to bring all collectors of scrap metal under the supervision of a depot to ensure traceability of the materials they collect.
It is our firm belief that when there is proper regulation of the scrap metal sector, the country will make a seamless transition from seeing scrap metal as waste to valuing it as a resource for development.
The iron and steel sector has a huge potential to create sustainable jobs and boost the local economy if the scrap metal sector is properly regulated to provide the needed raw material.
President John Dramani Mahama recently announced the government’s intention to ban the use of wood for furniture for schools in the country as a measure to reduce the cutting down of trees.
The President indicated that going forward, furniture for schools would be made from metals and plastics. What this means is that there will be heavy demand for scrap metal to make the policy successful.
The Daily Graphic whole-heartedly supports GIISDEC’s licensing policy for scrap metal dealers and calls on all stakeholders to play their part to ensure that the initiative succeeds.
