The Deputy Chief Executive Officer in charge of Operations at the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), Hon. Philip Oppong Amponsah, has led a delegation to engage scrap dealers in the Techiman North and South Constituencies.
The meeting with the scrap dealers forms part of a nationwide consultative initiative aimed at streamlining the scrap metal industry and addressing the numerous challenges faced by its operators.
Established in 2019 through an Act of Parliament (Act 988), GIISDEC was mandated to promote and develop an integrated iron and steel industry in Ghana. The corporation envisions the emergence of a vibrant integrated iron and steel sector which will serve as a catalyst for Ghana’s accelerated industrial development.
Speaking during the engagement, Hon. Philip Oppong Amponsah explained the critical role scrap dealers play in Ghana’s steel and metal value chain, noting that they are the lifeblood of the sector.
The former MCE for Techiman South disclosed the importance of inclusive dialogue in the process of developing the legal framework. According to him government cannot sit in offices in Accra and draft laws without input from those who live the reality of the industry, hence the nationwide tour to engage with scrap dealers.
“The government has recognized that scrap dealers play a crucial role in the steel and metal industry. As such, we are working to formulate a law that will properly regulate the scrap dealing business.
“However, we cannot sit in our offices in Accra and draft these laws without engaging the scrap dealers themselves. That is why we are here today, visiting the Scrap Dealers Association in both Techiman North and South, to solicit your input. We have already visited several cities across the country, and from here, we will continue to Sunyani to gather more feedback.” He stated
He further disclosed that metal manufacturing companies in Ghana rely heavily on scrap dealers for their raw materials, and noted that these companies have also expressed support for a regulatory framework to protect and enhance the industry.
Beyond its local relevance, the Deputy CEO in charge of Operations at GIISDEC also highlighted the international potential of the scrap industry.
“Many people involved in scrap dealing are not even aware that all the metal companies in Ghana rely heavily on them for raw materials. We have also met with those companies, and they fully support the need for a regulatory framework for the scrap business.
“Moreover, most people do not realize that, just like cocoa and gold, scrap has a vibrant international market. However, due to the absence of regulations, scrap dealers hardly benefit from this global opportunity. We want to change that.” He said.
Hon. Philip Oppong Amponsah revealed that the lack of formalization has allowed bad actors to infiltrate the industry, tarnishing its reputation. With the introduction of regulations and licensing, he said GIISDEC hopes to eliminate illegal operators, enhance transparency, and empower dealers to negotiate better prices.
“Because scrap dealing is not yet formalized, the industry has been infiltrated by individuals engaging in illegal activities, which tarnish the reputation of legitimate dealers. By introducing a law, we can issue licenses that will help eliminate bad actors, protect genuine dealers, and help them secure better prices for their goods.” He said.
Some scrap dealers also spoke to our reporter, welcoming the government’s plans to regulate the industry.
“Scrap dealing is a promising business, and if properly regulated, it can significantly reduce unemployment in the country. As it stands, I know of over a thousand people who are engaged in this trade. Many of our youth are unemployed, which often leads them into deviant behaviors like theft. I strongly believe that with proper regulation, more young people will be attracted to this business.” A scrap dealer told our reporter.
Others pointed out the operational challenges they face, including harassment at police checkpoints and unfair treatment in cases involving stolen goods. Nevertheless, they also called on fellow scrap dealers to uphold high ethical standards.
“One of the major challenges we face is the transportation of goods to our clients. We often encounter difficulties at police checkpoints, and we are appealing to the government for support in addressing this issue.
“Additionally, the way the police handle our cases is often disheartening, especially when we unknowingly purchase stolen goods. We support the idea of being issued licenses, as it will create a more conducive environment for us to operate.”
“Finally, I would advise fellow scrap dealers to be vigilant in their dealings. Always communicate with your workers, be cautious about whom you buy from, and avoid purchasing scrap materials at night, as that raises suspicion.” They said.
Source: Ghanaweb.mobi