GIISDEC eyes ESG-driven capital to boost iron and steel ambitions

Mr. Ofosu-Baakoh spoke at the CFOs Africa gathering in Accra. He emphasized the need for sustainable financing in long-term strategies. This includes project planning, community engagement, and developing Ghana's iron and steel industry.

He stated that integrating ESG (Environmental, Social, Governance) factors into finance decisions offers a competitive edge. GIISDEC is the state agency responsible for developing Ghana’s iron and steel sector. They aim to attract green capital investment by aligning with ESG standards.

Mr. Ofosu-Baakoh noted that ESG compliance would help build social capital. It would also create a stable business environment and reduce risks from community dissatisfaction. This shift towards sustainable finance aligns with Ghana's goal of leveraging its iron ore deposits.

Ghana has about 100 million metric tonnes of identified iron ore reserves. These are mainly located in Sheini (Northern Region) and Oppon Manso (Western Region). The government plans to process this ore locally for domestic steel production.

Preliminary surveys suggest additional untapped reserves in the Oti Region. This positions Ghana as a potential hub for West Africa’s steel industry. Officials believe this sector could transform Ghana’s economy through infrastructure development and job creation.

Currently, Ghana has an annual steel production capacity exceeding one million metric tonnes. However, domestic demand is only around 350,000 metric tonnes. The remaining capacity is underutilized due to competition from cheaper imports and limited local processing.

Industry analysts suggest developing an integrated supply chain from ore extraction to manufacturing. This approach could address the mismatch between supply and demand while creating value-added opportunities.

Mr. Ofosu-Baakoh stressed responsible resource utilization guided by sustainable finance practices. He highlighted the importance of community engagement and environmental stewardship as well. Aligning with ESG standards can enhance investor confidence and reduce reputational risks.

“Sustainable financing allows us to unlock capital,” he said, “and secure community trust.” The government's vision aims to establish a self-sustaining iron and steel industry for domestic projects while reducing import dependency.

GIISDEC's strategy reflects a commitment to align industrial development goals with global sustainability standards.