Ghana plans to process iron ore locally by 2027 to grow its economy. This move is part of Africa’s wider push to increase the value of its natural resources.
The Ghana-Integrated Iron and Steel Development Corporation (GIISDEC) and the Ghana Geological Survey Authority (GGSA) shared this plan.
The government has teamed up with eight firms to study Ghana’s iron ore. These firms will mine for a set time, not forever. Ghana prefers its own businesses for this work.
Nasurulai Abdullai from GIISDEC said talks are ongoing with more companies.
Choosing not to export raw ore fits Ghana’s goal to diversify its economy, which depends heavily on cocoa, gold, and oil.
George Mireku Duker, the Deputy Mining Minister, stressed that processing ore in Ghana would create jobs and grow the economy.
Ghana’s iron ore is about 36% pure, lower than the top-quality ore.
The full value and amount of these resources are still being figured out. One area in the west might have better, 55%-grade ore.
By processing iron ore itself, Ghana wants to use its resources better, create jobs, cut down on imports, and make more from exports.
This effort is part of a larger move in Africa, inspired by the global demand for electric vehicles. Zambia, Zimbabwe, and the Congo are also working to process minerals locally.
These projects must overcome challenges, like dealing with expert companies and changing governments.
Success will hinge on using green, efficient methods to address the pollution from steel production.
Background
This strategy marks a shift from Ghana’s past, where raw materials were often exported with little local processing.
Historically, Africa has exported its riches, missing out on the value-added benefits. Now, Ghana and other African nations are rewriting this narrative.
Efforts to process minerals locally can transform economies, making them less dependent on the volatile global market for raw commodities.
For instance, processing iron ore into steel within Ghana could spur industries ranging from construction to manufacturing.