The Ghana Integrated Iron and Steel Development Corporation (GIISDEC) will require all scrap dealers and exporters to obtain licenses by year-end, a move designed to combat infrastructure theft, tax evasion, and environmental hazards.
The new policy targets collectors, middlemen, and buyers in the scrap metal value chain, compelling them to register under a formal oversight framework developed with the Ministry of Local Government and the Attorney-General’s Department.
“Unlicensed operators act with impunity, stealing public property and evading taxes,” said Williams Okofu-Dateh, CEO of GIISDEC. He cited rampant theft of drain covers, electrical components, and machinery, alongside unsafe practices like burning wires for copper extraction, which pollutes air and endangers communities. The scrap sector, supplying 70% of Ghana’s iron rods for construction, lacks official data, enabling illegal trade and smuggling across borders.
GIISDEC’s licensing regime aims to enforce traceability, safety standards, and tax compliance while securing raw materials for local steel plants. A multi-stakeholder committee is finalizing implementation details, with full enforcement expected within months.
As Ghana’s sole locally available steelmaking resource, scrap metal is critical to the $1.6 billion construction industry. Formalizing the sector aligns with GIISDEC’s 2019 mandate to develop an integrated iron and steel economy.
