HOW THE IRON AND STEEL INDUSTRY IS A BOON TO GHANA’S ECONOMY.
The iron and steel industry forms the basis for the development of a large number of industries working for the global economy. Major industries that are co-dependent on the iron and steel industry are the defense industry, the transport industry, the heavy engineering field, the energy production industry, and the heavy construction industry(including shipping and aeronautical constructions). Also, both the iron and the steel industry are closely related to the light and chemical industries.
It reflects that the iron and the steel industry has the potential to contribute to the growth of the national economy. The metal industry in Ghana is the major reason for the growth of Ghana’s construction sector, and it also has been the recent target of investment. Most of the manufacturers face challenges like the uncertain supply of the inputs and the competition from imports. However, it is still continuing to better the overall economy of Ghana. Global iron and steel market
● Production
It is quite evident that the iron and the steel industry has seen significant changes over the last 35 years. In 1980, 716 million tonnes of steel was produced, and the Soviet Union (USSR) produced 21% steel, i.e., the highest percent of the steel produced by countries in that year. It was noticed to increase to 1665 million tonnes in the year of 2014. China led and produced around 60% of the steel globally.
● Consumption
Iron is used in all its forms, be it cast iron, steel, or rolled metal, and it is also the major construction material. It is quite crucial for the growth of the global economy. Iron retains its place ahead of wood in the construction industry. It is also competing with cement, ferroconcrete, and other construction materials. The global consumption of steel is increasing at a rate of 3% every year but mostly in developing countries.
Impact of Iron and Steel industry in Ghana
The economic impact of the industry is measured by its contribution to the GDP. Another vital thing that indicates the economic impact is the number of people working in the industry. These are two primary parameters that help in indicating the impact of the industry in any country. The steel industry has added a gross value of USD500 billion, and it provides employment to over 6 million people. The iron industry has added a gross value of USD460 billion, and it provides employment to more than 6 million people. Thus, it reflects that the impact of the iron and steel industry in Ghana is quite strong and liberating.
Conclusion
After the development of the metal industry in Ghana, the population has gained more and more employment, which directly affected the economic growth of Ghana. And the scope of the positive effects of a metal factory in ghana is not limited; it will grow with time and eventually will strengthen the economic state of Ghana.
