The Ghana Integrated Aluminium Development Corporation (GIADEC) is drafting a legislative framework to regulate the country’s downstream aluminium sector in a bid to curb widespread cable theft and tighten oversight of scrap and fabricated aluminium activities.
The initiative, supported by the Ministry of Lands and Natural Resources, aims at bringing order to a fragmented industry that includes aluminium scrap-dealing and casting, as well as manufacturing rods, foils and sheets. The sector remains largely unregulated, creating opportunities for criminal exploitation.
The recent dismantling of a multimillion-dollar cartel linked to thefts from the Electricity Company of Ghana has exposed systemic vulnerabilities in industrial infrastructure. Many of the stolen materials are believed to have been laundered through informal and unregulated aluminium smelters.
The prevalence of stolen materials entering these operations underscores the urgent need for tighter regulation of the downstream aluminium sector.
GIADEC’s plan includes identifying, registering and certifying all downstream operators. It also proposes the introduction of a mandatory certificate of origin for aluminium imports and exports to enhance traceability and ensure materials are legally sourced.
The measure is intended to prevent movement of stolen materials while strengthening Ghana’s standing in the global aluminium market by aligning with ethical sourcing standards.
The proposed framework is also expected to bring structure to the sector, leading to improvements in product quality, safety protocols and environmental practices. Unregulated smelters often use primitive and hazardous methods, contributing to pollution and unsafe working environments.
A legal framework would enforce better environmental standards, support sustainable industrial growth and reduce ecological harm linked to informal processing. The initiative aligns with international trends promoting responsible resource management and could improve the aluminium industry’s long-term viability.
GIADEC’s strategy also includes socio-economic components such as youth entrepreneurship training programmes. These will focus on responsible sourcing, small-scale traditional cans-smelting and domestic fabrication of aluminium products, aiming to build a skilled and ethical workforce within the sector.
The proposed framework includes mandatory safety and sustainability standards for all downstream operations. Regulation is expected to eliminate harmful practices and reinforce Ghana’s position as a responsible actor in the global aluminium value chain.
The policy is based on Act 976, which mandates GIADEC and the Lands Ministry to develop and implement strategies for growing the country’s integrated aluminium industry.
GIADEC recently became sole owner of the Volta Aluminium Company (VALCO) following a government share transfer and also manages state interests in the Ghana Bauxite Company.
The agency envisions transforming Ghana’s downstream aluminium sector from a disorganised landscape into a hub of innovation, job creation and long-term national development.
