Ghana’s domestic salt industry is projected to generate over US$1billion in annual revenue by 2028, according to a policy brief by IMANI titled ‘Prospects of Ghana’s Salt Industry: A Pathway to Adding an extra US$1billion in Foreign Exchange Earnings’.
Growth largely hinges on the Songor Salt project spearheaded by the McDan Group-backed Electrochem Limited, an indigenous company that has secured a lease to develop the Songor Lagoon area – historically known for its artisanal salt production.
It also involves minor funding by the Minerals Income Investment Fund (MIIF), with plans underway to list on the Ghana Stock Exchange (GSE) as it seeks to expand infrastructure.
The project aims to increase domestic annual salt production from around 250,000 metric tonnes to 1.5 million metric tonnes within the next four years. This dramatic scale-up could transform Ghana from a minor player, currently ranked 59th globally in salt exports, to one of the top-25 salt producing nations worldwide.
Ghana’s current salt exports used to be a mere US$4.36million in 2022, reflecting a startling underutilisation of the country’s potential. However, Electrochem aims to change this dramatically, projecting an increase in annual production from the current 150,000 metric tonnes to 1.5 million metric tonnes by 2028.
From contributing just 0.022 percent of Ghana’s export earnings, salt could account for up to five percent by end of the decade. This would place Ghana among the top-25 salt producers globally, a list dominated by industrialised nations.These notwithstanding, the path to this white gold rush is not without its challenges. The Songor Lagoon, a delicate ecosystem and protected Ramsar site, has been at the centre of community life for centuries and the prospect of industrial-scale production has sparked concerns among local artisanal miners.
While aware of these sensitivities, Electrochem has pledged to create over 5,000 direct jobs and support an additional 12,000 in related activities. Currently, about 9,000 residents engage in small-scale, unregulated salt mining, with most workers – many of them women – earning the equivalent of less than US$500 annually.
In fact, the Songor project has faced challenges, including resistance from some community organisations. But the company has already signed agreements with local leaders and promises to pay workers double the current rates.
With no investment, the industry remains dominated by small-scale, unregulated operators who exploit the resources without contributing to community development. We believe with continuous education, inhabitants will see long-term prospects for the community and nation as a whole.
