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News of the Wednesday, July 31, 2019
Source: Myjoyonline.com
2019-07-31
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The Association of Steel Manufacturers of Ghana (SMAG) says that the cost of electricity is a blow to the growth and development of the industry.
Members of the badociation visited Parliament Tuesday to meet with the legislators of the Energy and Trade Committee and industry on this topic.
They had previously approached the Speaker of Parliament, Professor Mike Ocquaye, with the recent increase in the electricity rate.
Dr. George Dawson-Ahmoah, executive secretary and consultant of the badociation, told reporters after the meeting that SMAG had presented legislators with a presentation on the strategic importance of the steel industry for the # 39; s economy.
He added that the meeting with members of Parliament had also addressed other issues causing unrest in the industry.
Dr. Dawson-Ahmoah highlighted two major challenges, namely the increase of electricity tariffs by over 92% and the ever-increasing steel imports in the country.
"We are saddened by the fact that the number of steelmaking companies in Ghana was 8 but two of them have recently collapsed because of these adverse economic conditions. It should be noted that the local steel industry employs about 3,000 direct workers and 10,000 indirect workers. Businesses also make a significant contribution to government revenue in the form of taxes, "he said.
Dr. George Dawson-Ahmoah, who serves as executive secretary of the Chamber of Cement Manufacturers, pointed out that the steel industry also uses local content by providing jobs to more than 10,000 scrap dealers and that It should consume about 1.2 million tons of scrap per year.
The installed capacity of the local steel industry is about 1,200,000 metric tons per year, for an average annual demand of about 350,000 metric tons per year, giving a surplus of 850,000 metric tons per year. How can we kill such an industry by encouraging the importation of finished steel products while it has a huge excess capacity, "he questioned.
Dr. Dawson-Ahmoah, on behalf of the Association, called on the government to immediately suspend the increase in electricity rates until a thorough and thorough investigation is conducted to determine the appropriate badessment. "According to our audits, some of our neighboring countries pay only 0.9 cents per kW / h of electricity. Until the closing of the investigation, we are therefore asked to delete the old Gh tariff. 0.41 pesewas must be maintained as an interim rate.
With regard to the illegal import of steel products into the country, the Association calls on the Government for a legislative instrument (LI) that will introduce quotas that will regulate the import and will also introduce some levies as safeguarding measures to protect imported goods. local iron and steel industry.
"Countries such as China, Egypt, Ethiopia, Nigeria and Congo have put in place such measures and Ghana can be inspired to protect our beloved local steel industry from # 39; collapse. "
Association of Steel Manufacturers of Ghana
Members of the Steel Manufacturers Association of Ghana include Sentuo Steel Company Limited, Tema Steel Co. Ltd., United Steel Company, Rider Steel Ltd., Ferro Fabrik Limited and Fabrimetal Ghana Limited.
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