Scrap dealers licensing policy takes off this year

The Ghana Integrated Iron and Steel Development Corporation (GIISDEC) has started the process to license and regulate the activities of all dealers in scrap metal business by the end of this year.

When the licensing regime becomes operational by January, 2026, dealers in the scrap metal value chain such as collectors, aggregators, agents and brokers, would not be allowed to conduct business without a licence issued by GIISDEC.

Interview

The Chief Executive Officer (CEO) of GIISDEC, William Okofo-Dateh, who disclosed this in an exclusive interview with the Daily Graphic, said the licence regime was part of a comprehensive policy meant to sanitise the scrap metal business to build a robust iron and steel industry.

“When the licensing policy takes off, we will be strict; without a licence, dealers in scrap metal cannot operate because their activities will be illegal; and once it is illegal, the law will apply,” he added.

Mr Okofo-Dateh also said that the scrap licencing policy was to ensure that operators in the value chain undertook their activities in an environmentally friendly manner and provide reliable source of raw materials for the iron and steel industry.

“We have started engaging the dealers across the country, trying to understand what the issues are so that we can get a good licence policy.

About 100,000 people are engaged in the sector. The scrapyard at Agbogbloshie is the epicentre of scrap activities in the country.

Modalities

Mr Okofo-Dateh said when the licencing policy is rolled out, it would help address some of those concerns and make the scrap business beneficial to all stakeholders.

He explained that under the licencing policy, operators in the scrap value chain, including collectors, aggregates, buyers, and manufacturers would register with GIISDEC and be regulated in a manner that allowed for a win-win situation.

Also, Mr Okofo-Dateh said collectors of scrap metal would be required to operate under a depot to ensure traceability.

“We will direct the steel companies to only deal with licensed agents and brokers; so, before anyone is given a licence, they will have to prove to GIISDEC the role they play in the value chain for the appropriate licence to be given to them,” he said.

Benefits

The GIISDEC CEO said apart from bringing sanity into the scrap metal business, the policy would also help to establish fair pricing for players in the value chain.  

“Because there is no law regulating the sector, the collectors of scrap metal take whatever is given to them; when they have a challenge, they do not know who to report to; they do not have a strong association.

“When all of them are registered, they will be brought under one umbrella body to speak for them or seek their welfare,” he said, adding that the policy would also help to control the exportation of scrap materials.