Ghana’s scrap metal dealers urge the government to implement regulations to eliminate criminal activities

Rising criminal activities have created tension among Ghana’s scrap dealers, leading to lower returns across the scrap metal industry. This gave a nudge to the scrap dealers to take up the issue to the government with the demand to implement stringent regulation to mitigate the current issue. 

The scrap dealers blame the current situation of the Ghana scrap metal industry on a lack of oversight leading to loopholes by the government which enabled the criminals to invade the scrap trade process. Due to these criminal activities infiltrating the scrap metal industry, many businesses have witnessed a tarnished reputation and functionality within the operating market. 

Moreover, Ghana's scrap dealers have also claimed that the nation's scrap business has been struggling for a long time to preserve credibility over the years, due to above stated reasons. These observations have been made by the Ghana Integrated Iron and Steel Development Corporation (GIISDEC) in a recent gathering. 

Challenges faced: 

• The absence of clear regulations, controls and guidance has made it difficult to maintain the required credibility and authenticity within the scrap metal industry. 

• Raising concerns among the local steel mills where difficulties were witnessed in purchasing a bulk of metal scrap, compounded by the lower prices offered to the scrap collectors. 

• Scrap dealers, irrespective of being involved in immense hard work in terms of collecting as well as transporting the scrap materials, incurred with very limited financial returns. 

A scrap dealer said, "Prices are too low. We gather these materials, but the returns don’t match the effort. It’s discouraging."

As a response to the complaint raised by the Ghana scrap dealers, Williams Okofo-Dateh, the Chief Executive Officer of GIISDEC stated relevant authorities and the Corporation have come together in collaboration to introduce a stricter regulation for this industry. Some of the initiatives include issuing licenses to the scrap dealers, tracking down the current illegal practices and establishing a monitoring mechanism. 

Williams Okofo-Dateh, the Chief Executive Officer of GIISDEC further stated, "We’ve discovered that some fabrication companies are exploiting the loophole—buying government electrical cables cheaply, melting them down and turning them into roofing sheets for profit. This must stop"

As of now, the government is actively taking measures to implement the stated initiatives to formalise and regulate Ghana's scrap metal sector. This has created hope for the stakeholders to expect and lead the industry into greater transparency, a safe and organised environment and fair pricing.