Monday, 26 May 2014

Resolving Ghana's Scrap Metal Export Ban's Associated Problems Creatively

A creative solution needs to be found to resolve the problems now faced by scrap metal merchants,  as a result of  the ban on the export from Ghana, of  types of scrap metal used by local steel manufacturing companies. The ban has apparently negatively impacted the businesses of many scrap metal merchants in the country.

A nation with a weak currency that is constantly depreciating, needs to export as many goods and services as it possibly can, in order to improve  its balance of payments,  and,  ultimately, help strengthen and  stabilise its currency, in so doing.

There are Ghanaians in the diaspora,  who could be persuaded to supply the steel manufacturing companies in Ghana, with the type of scrap metal they require - if they could be guaranteed payment in Ghana cedis, for deliveries of scrap metal they make  to the steel manufacturing companies here.


That will enable local scrap metal merchants to resume dealing directly with the Indian scrap metal  buyers in Ghana,  who, unlike the local  steel manufacturing companies, apparently pay promptly, for all scrap metal delivered to their yards - helping to revive what is currently a more or less  moribund sector of the national economy. And as  business is resumed once again one hopes that the sector's players  will thrive in a difficult economic environment.

As my widow's mite contribution to the nation-building effort, I will be happy to introduce the ministerial team at the ministry of trade and industry, to Ghanaians in the diaspora,  who would be willing to supply the type of scrap metal used by the steel companies in Ghana, if  they are guaranteed prompt payment in Ghana cedis for all the scrap metal they send to Ghana - and are asssured of a frustration-free and swift clearing process at the port of Tema, for all the containers of scrap metal they send to steel manufacturing companies here.

That will enable the ministerial team at the ministry of trade and industry to finally come up with a creative free-market solution, to resolving the difficulties currently faced by local scrap merchants - as a result of the ban placed on the export from Ghana  of some of the types of scrap metal they deal in.

 The same innovative idea could be used to supply imported raw materials to other manufacturing companies in Ghana  - and help lessen demand for hard currency to pay for the Ghanaian manufacturing sector's imported raw material needs: and ease the pressure on the Ghana cedi on the  forex markets.

 Amongst the incentives that could attract diasporans to see this as a viable business to undertake, would be making the importation of scrap metal into Ghana for the steel manufacturing industry, a duty-free  undertaking.

Perhaps the banking industry could also help out -  if individual banks regarded payments  for consignments of  imported scrap metal delivered to  the steel manufacturing companies that bank with them,  as extended credit facilities,  for major clients of theirs.

One hopes that the trade and industry ministry's ministerial team  will take advantage of this free consultancy  - humbly provided them openly for patriotic reasons - to help them  resolve the associated problems arising from the ban the ministry placed on the export fom Ghana, of  types of scrap metal  used by local  steel manufacturing companies.








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