Ghana government urged to review ban on scrap metal exports

Author: Paul Ploumis06 Feb 2015 Last updated at 07:28:11 GMT

KAMPALA (Scrap Monster): The Forum for National Equity-a prominent civil society organization has called upon the Ghana government to lift the outright ban on scrap metal exports from the country. The Forum demanded urgent action by the government as the policy action has turned counter-productive, thereby resulting in huge loss to the country’s economy.

According to the Forum, the domestic steel mills lack capacity to absorb all types of scrap produced domestically. Also, the supply volumes have grown bigger than what actually is required by domestic mills. It noted that domestic mills are not capable enough to handle high carbon metals such as cast iron, engine blocks, mill liners, steel balls and ductile pipes.

The outright ban on scrap metal exports also has affected almost two million people who depend on scrap industry for their livelihoods. Many scrap dealers are forced to shutter facilities, on account of lack of business due to the ban. Mr Prince Bagnaba-Mba urged the government to lift ban on exports of at least those items that are not required by domestic industry. He noted that the blanket ban on scrap metal exports will harm the country’s overall economic growth.

The country’s Trade Ministry had imposed ban on scrap metal exports to protect the domestic steel mills by ensuring supply of raw materials. The surveys conducted then had showed that many steel facilities in the country were operating only up to 30% or even less than 30% of their capacities owing to shortage of raw materials.

Meantime, Ghana Scrap Dealers Association too has asked the government to remove the export ban on products such as steel balls, ductile steel and manganese which are rarely used by domestic steel mills.