Policy framework to transform aluminium downstream in the works
The CEO of the Ghana Integrated Aluminium Development Corporation (GIADEC), Michael Ansah is betting on a draft policy framework which aims at developing the downstream aluminium industry, that is expected to attract companies to invest in the sector.
According to Mr.Ansah, GIADEC in partnership with stakeholders is seeking to prepare the policy environment, incentive framework that will support the downstream industry that will be set up.
Mr.Ansah disclosed that sometime this year the policy framework should be ready to become a legal document.
“so it’s a process, we have developed some initial studies which is what would be discussed, once we have formulated everything we will have a framework, we will work with Ministry of Trade,Finance, others to see when that can be turned into a legal document but that should be sooner, we looking this year to formulate that and drive that.”
Speaking to journalists at the opening of a two-day Downstream Aluminium Industry Workshop 2023 at Royal Senchi Hotel in Akosombo in the Eastern region he said “This workshop is about the development of the downstream aluminium industry and that’s important in everything that we doing under the integrated aluminium plan, the downstream is actually the heart that will drive a lot of industrial transformation.
We are looking at a master plan that will lead to the modernization and retrofitting of the Valco plant , once that is done we going to be producing in the region of about 300,000 tonnes of primary aluminium and we going to make sure that a lot of this is utilized in Ghana for the benefit of the country to grow the economy.”
The potential of aluminium cannot be underestimated and GIADEC CEO believes the global economy is headed that way in terms of how the country utilizes aluminium in a big way and thinks that what is being doing to establish the integrated aluminium industry will propel Ghana to lead across Africa.
“We will build policies that will attract companies to come and establish here, we have done so successfully in the auto manufacturing part which is why we see these companies producing and I think we can repeat that success with getting a whole load of companies in the aluminium downstream sector.”
The policy will look at a raft of areas; what sort of policies does government put in place to make Ghana an attractive place for such companies who want to make these sorts of investments here…these are going to be multi-million dollar investments and as such with decisions like that , the policy backing is there, there is also the tax incentive framework -which is to ensure that we don’t give too many incentives to companies ..but is all around what we do that recognizes what industry needs and the important thing is that we are not coming here with pre-conceived ideas, we have done some work in terms of trying to define what would be attractive having engagement with industry.
several companies are represented here and we want to have a conversation that will lead to us listening to industry and we want to make sure that the ministry of trade who are also here, finance, agi so we got some building blocks for policy.
and we build the framework that industry is asking for and promote the industry as a whole, so we hope to put this on the table of government to make sure that we can be prepared ahead of these industries coming to Ghana.
Elements in the policy
Embedded in the policy is power which is expected to support the production of primary aluminium -whether it can be green power which can help brand the aluminium produced in Ghana.
Also, the tax aspect as well as tariffs, given that the country imports significant quantities of aluminium products into Ghana, the framework when adopted and ready will check such imports and encourage the development of Ghanaian companies.
The Minister of Lands and Natural Resources, Mr. Samuel Abu Jinapor underscored the need to develop the aluminium downstream industry.
For him, the failure to do so over the years, has deprived the country significant revenue and employment opportunities for the youth.
He called for value addition to the aluminium produced in Ghana, “ the real value of our mineral resources, lies I value addition. For example, while bauxite sells around Forty to Sixty US Dollars per metric tonne (USD 40 -60),refined bauxite, alumina sells for over Four Hundred US Dollars (USD400) per metric tonne and primary aluminium produced from the alumina goes for USD2,000 per metric tonne.
Unfortunately, our failure, over the years to put in place a mechanism for developing this integrated industry has deprived us of the much-needed revenue that will accrue from these resources.” he said.
The workshop seeks to obtain stakeholder input to develop a policy framework and implementation plan for an aluminium integrated industry for the country. It was under the auspices of GIADEC in partnership with the Strategic Anchor Industries Unit of the Ministry of Trade and Industry and the ODI (formerly Overseas Development Institute, with funding from the United Kingdom Government’s Foreign ,Commonwealth and Development Office (FCDO).
