The government is ramping up efforts to integrate sustainable financing into its long-term economic and industrial development strategy, particularly as it advances plans to develop the Ghana Integrated Iron and Steel Industry (GIISDEC).
Speaking at the 5th CFO & Public Finance Conference 2025, Prince Ofosu Baakoh, Director of Finance at GIISDEC, emphasised the growing necessity of embedding environmental, social and governance (ESG) principles into corporate and public finance decision-making processes.
He noted that doing so not only enhances competitiveness but also ensures long-term resilience in critical sectors such as iron and steel.
“It has become imperative to employ sustainable financing into our long-term strategies, project planning, community engagement and development of the Ghana Integrated Iron and Steel Industry as a growing India ,” Mr. Ofosu-Baakoh told delegates at the CFOs Africa gathering in Accra. “Rooting ESGs into finance decisions builds a long-term advantage to the corporation, existing and developing businesses and creates competitive advantage.
GIISDEC, the state agency tasked with developing Ghana’s iron and steel sector, is looking to attract green capital investment by aligning its operations with ESG standards.
Mr. Ofosu-Baakoh said ESG compliance would help the agency gain social capital and create a stable business environment, reducing risks associated with community dissatisfaction and potential illegality.
The move toward sustainable finance comes as Ghana seeks to leverage its vast iron ore deposits to propel industrialisation and reduce reliance on raw material exports.
With an estimated 100 million metric tonnes of iron ore reserves identified primarily in Sheini in the Northern Region and Oppon Manso in the Western Region, the government has outlined plans to process and refine ore locally to feed domestic steel production.
Preliminary geological surveys also suggest the Oti Region holds additional untapped reserves, positioning Ghana as a potential hub for West Africa’s steel industry.
Officials believe the sector could play a transformative role in Ghana’s economy, contributing to infrastructure development, job creation and technological advancement.
Despite having an installed annual steel production capacity of over one million metric tonnes, Ghana’s actual domestic demand is currently around 350,000 metric tonnes. The remaining capacity remains underutilised due to competition from cheaper imports and a lack of local iron ore processing.
Industry analysts say the development of an integrated supply chain—from ore extraction to steel manufacturing—would help address this mismatch while creating value-added opportunities.
Mr Ofosu-Baakoh maintained that responsible resource utilisation, guided by sustainable finance practices, will be key to the sector’s success.
He stressed the importance of community engagement and environmental stewardship, adding that ESG alignment would enhance investor confidence and reduce reputational risk.
“Sustainable financing offers us the opportunity to not only unlock capital but to secure the trust and support of the communities we operate in,” he said.
The government’s broader vision is to build a self-sustaining iron and steel industry that feeds domestic infrastructure projects while reducing import dependency.
GIISDEC’s strategy signals a growing commitment to align Ghana’s industrial development goals with global sustainability standards.
