Ghana Formalizes Scrap Metal Trade to Boost Steel Industry

Ghana is turning its chaotic scrap metal trade into an organized industry that could power the country's steel sector for years to come.

The Ghana Integrated Iron and Steel Development Corporation (GIISDEC) announced plans to roll out a comprehensive policy that will bring structure to the largely informal scrap dealing business. Right now, scrap collectors operate with little oversight, sometimes posing risks to critical national infrastructure.

"We are developing a policy that will formalize the scrap dealing sector to ensure dealers operate within a clear and regulated framework," said GIISDEC Chief Executive Officer William Okofo Darteh after visiting B5 Plus Company in Tema.

The new framework will improve how scrap materials are tracked and traded across Ghana. More importantly, it promises to create legitimate job opportunities in a sector where many workers currently operate in the shadows.

For Ghana's steel manufacturers, the policy means something even more valuable: a reliable supply of raw materials. Local factories have long struggled with inconsistent access to quality scrap metal, forcing some to rely on expensive imports.

GIISDEC is working directly with scrap dealers and industry players to design regulations that work for everyone. The collaborative approach aims to bring workers into the formal economy without destroying the livelihoods they've built.

The Ripple Effect

The benefits extend far beyond the scrap yards themselves. Formalizing the sector means dealers will pay taxes, contributing new revenue to government coffers that can fund schools, hospitals, and roads.

Better regulation also means safer cities. Uncontrolled scrap collection has sometimes led to theft of electrical cables, railings, and other infrastructure that communities depend on.

Steel manufacturers will be able to plan production more effectively with guaranteed supplies, potentially lowering costs for construction projects across the country. That could make housing and commercial buildings more affordable for ordinary Ghanaians.

The policy positions scrap dealing as a strategic component of Ghana's broader industrialization goals. Instead of exporting raw materials, the country can process them locally, creating value and jobs at home.

Workers in the informal scrap trade will gain access to protections and benefits that come with official recognition. The framework creates pathways for small operators to grow their businesses legitimately.

Ghana's approach shows how governments can embrace informal economies rather than fight them, turning grassroots hustle into national economic strength.