Scrap export restrictions could generate $300m annually - President Mahama
President John Dramani Mahama has projected a 20 to 30 per cent reduction in Ghana’s steel imports as the government intensifies efforts to expand domestic production, linking the strategy to new restrictions on non-ferrous scrap exports that could generate up to $300 million annually from processed metal exports.
He said the measures are part of a broader industrial transformation agenda designed to ease pressure on foreign exchange reserves, strengthen supply chains and position Ghana as a competitive steel producer within West Africa.
Speaking at the commissioning of the second-phase expansion of B5 Plus Limited’s SBMS plant, President Mahama noted that Ghana’s annual steel demand exceeds 1.2 million metric tonnes, driven by activity in construction, energy, mining and manufacturing.
He observed that a substantial portion of this demand has historically been met through imports, exerting sustained pressure on the country’s foreign exchange reserves.
“The expansion of this facility strengthens domestic capacity to substitute those imports, to save us foreign exchange, to improve our trade balance and to reduce exposure to global price volatility,” he said.
The President added that cutting steel imports by up to 30 per cent could translate into hundreds of millions of dollars in foreign exchange savings each year.
Turning to policy reforms, President Mahama announced plans to restrict the export of non-ferrous scrap, a move he said would guarantee local processors improved access to critical raw materials.
He explained that Ghana generates significant volumes of scrap metal from construction, demolition, vehicle imports and industrial operations, yet much of it is exported in raw form with limited value addition.
By retaining scrap for domestic processing, he said processed metal exports could increase by between $250 million and $300 million annually.
The President indicated that the policy could create between 5,000 and 10,000 jobs along the metal value chain, while boosting government revenue through value added tax, corporate income tax and pay-as-you-earn contributions.
He also disclosed that he had assented to the 24-Hour Economy Authority Bill a day earlier, formally giving legal backing to the flagship policy. According to him, B5 Plus will be among the first companies to register under the initiative.
President Mahama said GH¢110 million has been allocated in the 2026 budget to operationalise the programme, which is expected to support energy-intensive industries such as steel manufacturing through round-the-clock production, improved furnace efficiency and reduced unit costs.
“With industrial tariff reforms, improved grid stability and expanding domestic gas supply, manufacturing can operate competitively beyond the traditional hours,” he said.
Commending B5 Plus for its tax compliance, the President stated that the company has paid more than GH¢300 million in taxes and is on track to exceed GH¢500 million.
He linked the plant’s expansion to the government’s wider infrastructure push, including roads, railways, bridges, energy transmission lines, housing and industrial parks, all of which depend heavily on iron and steel.
President Mahama further urged a swift resolution of ongoing land litigation affecting the company’s expansion site, calling on the parties involved to settle the matter to facilitate continued growth.
He added that Ghana’s status as host of the Secretariat of the African Continental Free Trade Area presents a strategic opportunity for locally manufactured steel to access markets across West Africa and beyond.
