The Minerals Income and Investment Fund (MIIF) has disclosed its ambitious plans to promote the development of the salt industry in Ghana, with the Ada Songor Lagoon at the forefront of its strategy.
Following a working tour of the lagoon by the Board, Management of MIIF, and officials of the Ghana Stock Exchange, Mr. Edward Nana Yaw Koranteng, the Chief executive officer (CEO) of MIIF revealed to reporters that MIIF is far advanced with plans to invest in the Ada Songor salt project towards developing it to be the largest in the South of Sahara.
“Ultimately this investment seeks to ensure that Ghana benefits from the many uses of salt, especially as a core input to support the industrialization agenda of the Government of Ghana.”
Mr. Edward Nana Yaw Koranteng
The scale of the Ada Songor salt project is immense, sitting on some 41,000 acres – straddling at least thirty-three (33) Ada Communities, and making it larger in acreage than Walvis Bay of Namibia, which is about 16,700 acres.
The Ada Songor, according to the officials of Electrochem Ghana Limited (the largest salt and chlorine-akali manufacturing company in West Africa), has the potential to produce more than 5 million MT at capacity with an estimated 650,000 metric tons (mt) of industrial salt in 2023 and circa 1.5 million MT over the next five years with a 99.99% purity.
MIIF’s Salt Outlook And Investment
In line with MIIF’s investment strategy of generating downstream to upstream value from every single mineral, the Fund has declared salt as a priority mineral in Ghana.
The Board Chairman of MIIF, Professor Douglas Boateng averred that the Fund is targeting investments across the producing areas in the Greater Accra and Central regions of Ghana.
Commenting on how valuable salt is to the country, the CEO of MIIF, Mr. Koranteng, stressed that: “Salt is an infinite resource with over 14,000 uses. At full potential and with such expansive usage, salt in Ghana has the potential to earn circa $500 Million a year in foreign exchange with Nigeria and the rest of the West African region as priority markets.”
“Salt as a raw material covers the pharmaceuticals, food processing, oil and gas, food preservation, production of caustic soda, the textiles industry, mining, road maintenance, hospitals and hospitality sectors which all require high grade salt to support the manufacturing of inputs or processing.
“This is the reason why MIIF is excited about this opportunity for Ghana and is currently working on a broad-based investment which would include a listing of the project on the Ghana Stock Exchange.”
Mr. Edward Nana Yaw Koranteng
The Ada Songor present numerous opportunities, including two export jetties to facilitate export and other lake transport opportunities, the creation of massive employment in the producing areas, and the substantial revitalization of the local economies.
Listing of Electrochem on GSE
In consonance with MIIF’s investment strategy to ensure that all major investments are listed on the Ghana Stock Exchange, the CEO- Mr. Koranteng confirmed that Ghana Stock Exchange has agreed to list Electrochem Ghana Limited on the exchange – as a condition to MIIF’s investment.
“Investing in salt is part of our mineral diversification strategy in line with President Nana Akuffo Addo’s charge to MIIF to ensure that we create Ghanaian business champions, while at the same time creating opportunities along the value chain and on the capital markets for Ghanaians to directly have the chance to invest in such companies.”
Mr. Edward Nana Yaw Koranteng
The Managing Director of the Ghana Stock Exchange, Ms. Abena Amoah, who is also a member of the Investment Advisory Committee (IAC) of MIIF, expressed gratitude to MIIF for the initiative taken, motivating the Fund to continue its good works for the country.
“What I have come to see here, really warms my heart. A great company is underpinned by the quality of the asset.
“We can become Africa’s number one salt producer, the sea never dries, the technology exists to mine the salt, the market for salt is not in doubt and with some ringfencing and great risk management, the investment in Electrochem and its listing on the Ghana Stock Exchange will be a win-win for all Ghanaians.”
Ms. Abena Amoah
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