Rev. Dr. George
Dawson-Ahmoah
The Steel Manufacturers Association of
Ghana (SMAG) says the recent increase in electricity tariff, coupled with high
cost of importation of steel, is killing the local steel industry.
Members of the association yesterday
were at Parliament House to meet joint Parliament committees on energy, trade
and industry after they had earlier petitioned the Speaker of Parliament over
the recent increase in electricity tariff.
The Executive Secretary/Consultant of
the Association, Rev. Dr. George Dawson-Ahmoah, after the meeting told
journalists that the steel industry was strategic for economic development and
must not be forced out of business.
He said the tariff challenges were
causing unrest in the industry, adding “currently, electricity tariff is
hovering around 92% for the steel industry.”
“We are saddened by the fact that the
number of steel manufacturing companies in Ghana was eight but two of them have
recently collapsed because of these unfavourable business conditions,” he
disclosed. “It is worthy to note that the local steel industry employs about
3,000 direct workers and 10,000 indirect workers. The companies also contribute
significantly towards government revenue in the form of taxes,” he added.
Rev. Dr. George Dawson-Ahmoah, who doubles as the Executive Secretary of the
Chamber of Cement Manufacturers, stressed that the steel industry also uses
local content by providing job for over 10,000 scrap dealers, and it is
expected to consume about 1.2 million tonnes of scrap for production annually.
“The installed
capacity of the local steel industry is about 1,200,000 metric tonnes per annum
against an annual average demand of about 350,000 metric tonnes per annum which
results in a surplus of 850,000 metric tonnes per annum. How can we kill such
an industry by encouraging importation of finished steel products when it has
such a huge surplus capacity?” he queried.
“Our checks have
it that some of our neighbouring countries pay as low as 0.9 cent per Kw/h of
electricity so until the enquiry is concluded we are requesting that the old
tariff of GH¢0.41 pesewas must be maintained as an interim tariff,” he pointed
out.
On the issue of
the illegal importation of steel products into the country, the association appealed
to the government for a legislative instrument (LI) which would introduce quotas
that would regulate the importation and also introduce/impose certain levies as
safeguard measures on importation to protect the local steel industry.
Members of SMAG are
Sentuo Steel Company Limited, Tema Steel Company Limited, United Steel Company,
Rider Steel Limited, Ferro Fabrik Limited and Fabrimetal Ghana Limited.
