A Ghanaian cable manufacturer, Fenice Metal Technology Limited Company, aims to reduce the country’s dependence on imported finished cable products.
The company’s Founder and CEO, Mr. Lu Changshou, highlighted its strategy to achieve this by implementing an active import substitution plan.
Fenice developed an innovative technology enabling it to extract refined copper from recycled materials. Previously, local cable manufacturers were compelled to import all raw materials, particularly copper rods, mainly from Europe.
Fenice Metal Technology Limited said it plans to expand its copper rod production from the current 600 tons per month to 1,600 tons per month over the next five years to meet the demand of local cable manufacturers.
The CEO emphasized that increased supply to local manufacturers would result in cost savings, enabling them to offer more competitive prices compared to imported cable products.
This expansion is projected to save the country millions of US dollars by reducing reliance on imported cables, thereby aligning with government initiatives aimed at strengthening the national currency.
“Today in Ghana more than 80% of the cable is imported, while 20% is locally made. So, we have the intention of reversing this trend given the goodwill of the Ghanaian people towards Fenice.
“We have the confidence that we are going to facilitate the same story here in Ghana just as we did in Nigeria. We are going to help the industry to achieve import substitution.”
Mr. Lu Changshou
According to Mr. Lu Changshou, despite sufficient output from Ghanaian cable manufacturers who consistently produce high-quality cables, the local industry is facing challenges due to the influx of imported products primarily from India and Turkey.
These imported items often fail to meet Ghana’s strict quality standards, posing a threat to the competitiveness of locally manufactured cables.
“For me, I just want to help the country to achieve import substitution. That is the only way that, let’s say, the country can work. We are here for the long haul, and we want to be part of the Ghana success story.
“A country like Ghana cannot rely on importation. You cannot borrow money to spend. You need to help yourself to achieve self-dependence in all the products, including cables. And by investing in the country, you are going to create a lot of job opportunities. You are going to generate a lot of revenue for Ghana.”
Mr. Lu Changshou
He also stated that Fenice Metal Technology Limited specializes in the production of PVC-insulated cables across a range of sizes.
He highlighted the company’s use of cutting-edge equipment and a unique production approach as key factors that distinguish its products in the market.
Fenice’s cables are renowned for meeting high-quality standards, having undergone rigorous testing and approval by the Ghana Standards Authority (GSA).
In-House Production Strengthens Fenice’s Position
Moreover, Mr. Lu Changshou asserted the company’s competitive pricing advantage, attributing it to its in-house production of copper rods, a critical raw material for cable manufacturing.
Currently, Fenice employs around 100 workers, all of whom are based at the factory site in Tsopoli, Greater Accra Region.
“We could have more, but last year we had some challenges. They are trying to frustrate us. Thank God, we are strong enough to survive” he added.
The Founder of Fenice Metal Technology Limited called upon the government to show stronger support for local manufacturing companies by listening to their concerns and taking steps to address them.
He emphasized the necessity for the government to reduce the high taxes imposed on manufacturing companies and introduce incentives that would lower the overall cost of doing business.
Furthermore, the Founder advocated for a ban on the direct export of scrap copper to promote local value addition.
By retaining and processing scrap copper within Ghana, the country can enhance its capacity for value-added manufacturing and strengthen the domestic supply chain.
