Investors from the United Arab Emirates, France, the United Kingdom and Austria want a piece of a salt company on the Songor Lagoon in Ghana. That was the message Francis Buamah, chief executive of Electrochem Ghana Limited, gave a delegation of civil society leaders who came to Ada to see the operation for themselves.
The visitors left convinced. In a statement afterward, the civil society organisations (CSOs) called Electrochem’s work at Ada a strategic national asset, one that could turn Ghana into a major player in Africa’s salt industry. They also backed more equity investment in the company, particularly from the Minerals Income Investment Fund (MIIF).
The delegation toured the facilities of the Ada Songor Salt Project, described as one of West Africa’s largest salt mining ventures. They sat down with management, traditional authorities and community stakeholders. The CSOs said the investment Electrochem has put in over five years is making the project a driver of industrialisation, jobs and local economic development.
A watchdog’s praise, with a condition
Kofi Owusu Hene, better known as Kofi Kapito, heads the Consumer Protection Agency. He said what Electrochem has built so far puts Ada on track to become a salt production hub with significance across the continent.
“Electrochem’s commitment to developing Ghana’s salt industry is evident, and the investments being made have the potential to generate substantial economic opportunities for both the local community and the country at large,” he said.
Kapito did not stop at praise. He pressed management to keep talking with residents, explaining the long-term benefits of the project and handling their worries through dialogue and consultation.
A $500 million expansion
Electrochem is pursuing a $500 million expansion. Buamah said talks with prospective investors have picked up over the last six months, as the company looks for money to scale up and modernise.
The list of planned spending is long. It covers automated pumping systems, pipelines, a jetty, vessels and barges, a salt refinery to be completed, a caustic soda plant, mining equipment and a research-focused university. The goal is to lift annual salt output to one million tonnes.
“We’ve had investors from the United Arab Emirates, France, the United Kingdom and Austria who are interested in the salt business and see Ghana as a gateway to the African market,” Buamah said. He pointed to the African Continental Free Trade Area, which would give an investor access to a market of more than 1.2 billion people.
Board Chairman Professor Kofi Abotsi said private money has to do more than pay shareholders. In his view the Songor project should create jobs, support industry and improve life in the communities around the lagoon. Stakeholder engagement, he said, is needed to keep public confidence.
What the traditional council said
The Vice President of the Ada Traditional Council called the lagoon one of Ghana’s most valuable natural resources, able to yield millions of metric tonnes of industrial salt a year. He recalled the 1991 Songor Master Plan, which proposed coordinated salt production involving investors, local communities and structured management of the lagoon.
Traditional leaders said government gave the concession to Electrochem in 2019 to revive an industry that had sat underused for decades. Nene Agudey Obichere III rejected what he called misconceptions about the company, saying its work fits with sustainable development, community participation and restoration of the lagoon ecosystem.
The council also credited Electrochem with jobs, potable water and women’s empowerment programmes. It asked for continued government support, peaceful engagement among stakeholders and law enforcement to protect the lagoon’s future.
Sources
- CSOs Laud MIIF’s Investment In Electrochem – The Ghanaian Chronicle
- CSOs back equity investment in Electrochem, praise progress of Songor Salt Project – MyJoyOnline
