Scrap dealers demand regulation to curb rising criminal activities in scrap industry

Scrap dealers across Ghana are calling on the government to introduce strict regulations for the scrap metal industry.

They argue that the current lack of oversight has created loopholes, allowing criminal elements to infiltrate the trade and tarnish the reputation of legitimate businesses.

Scrap metal collection, including both ferrous and non-ferrous metals, has become a lucrative economic activity in many parts of the country. Commonly traded materials include aluminum, copper, brass, zinc, and iron, often used by local fabrication companies to manufacture roofing sheets and other essential construction components.

However, industry players emphasize that the absence of clear guidelines and regulatory controls has made it difficult to maintain order and credibility within the sector.

“Because there is no regulation, some criminals are entering the business. They steal unauthorized metals and even government cables, giving us all a bad name,” one scrap dealer said during a recent stakeholder engagement.

The meeting, organized by the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), brought together scrap dealers from across the country to discuss the challenges facing the sector and potential government interventions.

One major concern raised was the difficulty local steel mills face in purchasing the growing volumes of scrap metal, compounded by the low prices offered to collectors. Dealers highlighted that despite the hard work involved in collecting and transporting materials, the financial returns remain discouraging.

“Prices are too low. We gather these materials, but the returns don’t match the effort. It’s discouraging,” another dealer lamented.

In response, the Chief Executive Officer of GIISDEC, Williams Okofo-Dateh, revealed that the Corporation is collaborating with relevant authorities to introduce a regulatory framework for the scrap industry. This includes issuing licenses to scrap dealers, establishing monitoring mechanisms, and cracking down on illegal practices.

“We’ve discovered that some fabrication companies are exploiting the loophole—buying government electrical cables cheaply, melting them down, and turning them into roofing sheets for profit. This must stop,” the GIISDEC CEO stated.

Williams Okofo-Dateh stressed that the aim of the upcoming reforms is not to frustrate legitimate businesses but to protect the industry and promote sustainable development.

“We’re calling on all genuine scrap dealers to come forward and support the process. This is about protecting your business and the country’s interest,” he added.

As the government initiates steps to formalize and regulate the scrap metal sector, stakeholders are hopeful that these efforts will lead to greater transparency, fairer pricing, and a safer, more organized environment for all involved.

The post Scrap dealers demand regulation to curb rising criminal activities in scrap industry first appeared on 3News.

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