The International Finance Corporation (IFC), a member of World Bank Group, has approved the disbursement of $12million loan to support Rider Iron and Steel Ghana Limited (RISGL), for the construction of steel manufacturing plant in Kumasi.
The construction of the steel manufacturing plant, is expected to create about 450 direct jobs and generate more than 13,000 indirect jobs in value chain, mostly among individuals and micro enterprises engaged in scrap collection.
The completion of the factory, by June 2021, with production capacity of about 40,000 tonnes annually, is also anticipated to increase current domestic production of steel by more than 75 percent.
The IFC Country Manager, Ronke Ogunsulire, commenting on the development observed the significant contribution this would bring to the local economy, particularly in these difficult times.
“We are pleased to support Rider Steel and contribute to job creation, local skills development and economic growth in Ghana, especially at a time when the global economy is facing challenges,” he said.
The Director of RISGL, Eng. Walid Al Alami, noted that the capital injection from IFC is a game changer, not just for the company but also for the industry and Ghana.
‘The loan will propel us to meet domestic demands and support many other businesses along the way,” he said.
General Manager of RISGL Dr. Majd Hawwari expressed appreciation to IFC, and indicated that the engagement with IFC, will take the industry to another level as it will increase the rate of employment for the next 30 years; enhance quality of the products due to the advanced technology used in addition to the vast accumulated experiences under Riders belt; and through collaboration with local expert houses such as Kwame Nkrumah University of Science and Technology (KNUST).
He emphasized that the company pays lots of attention when it comes to environmental protection since the factory will be equipped with sophisticated air pollution reduction systems.
It was acknowledged that being under the one district one factory initiative (1D1F) the company will be able to better satisfy its corporate social responsibility.
Rider Iron and Steel Ghana Limited which is located on the N6 Accra-Kumasi highway is envisioned to be the largest steel manufacturing factory in West Africa equipped with six 20 MT furnaces that will be able to produce more than 240,000MT worth of rebar steel and structural material such as angle steel, C channels, I beams among others.
Rider industries is a privately held, global corporation that operates throughout Europe, Middle East, and Africa.
In 2014, Rider Steel Ghana (RSG), based in Tema, the corporation first investment in Ghana, started production, and the factory has been upgraded several times since then. RSG is considered one of the major industries at Tema free zones enclave, and it has been providing jobs for more than 350 employee for the last 7 years
Expected June 2021, the company will finish setting up its second investment in Ghana at Odumasi-Konongo, to produce and distribute steel products for West Africa and beyond.