Ghana has the huge potential to become the leading producer of salt in Africa, policy-think tank, IMANI Africa has argued.
According to IMANI Africa’s policy brief on the salt industry which was copied to The High Street Journal, the industry has an untapped potential in addition to a unique coastal geography offering the country a competitive advantage in salt production.
The policy think tank says there is an opportunity for the country to maximize economic benefit from salt production given the vast reserves which have the capability of continual replenishment.
The global salt industry is estimated at $US34 billion. This is projected to expand to US$48 billion by 2030 presenting an opportunity for the country to tap into this huge market.
IMANI says should Ghana produce 2.5 million metric tons annually, the nation stands the chance to rake in about US$1.2 billion annually by 2028 to supplement its foreign exchange earnings. Such achievement, IMANI believes will place Ghana among the top 25 salt producers in the world and the leader in Africa.
“Ghana by virtue of this project has the potential to catapult itself as the top salt producer in Africa with around 2.5 million metric tons annually due to the unique coastal geography and economies of scale. This could potentially rake in foreign exchange in excess of over 800 million initially to up to 1.2 billion USD annually by 2028 to put Ghana in the top 25 salt producers in the world,” portions of the IMANI Policy Brief read.
Another benefit that Ghana stands to gain is massive industrialization should the salt industry be strategically and economically developed.
IMANI says, “all top 20 salt producers are also heavily industrialized countries, which means that salt can have the ability to transform our industrialization, especially with new uses in green and renewable energy generation and storage, which is the direction of the future.”
To be able to tap into this potential of the salt industry, IMANI Africa advocates for the development of a national policy on resource exploitation. A locally sourced investment strategy, drawing on the successes of the Electrochem and Songor salt basin activities, IMANI says would be key to ensuring Ghana reaps long-term benefits from its salt reserves.
The policy brief also calls for the creation of vibrant value chains that will enhance the local economy, increase job opportunities, and promote sustainable development.
“The global salt industry is on a steady upward trajectory, growing at more than 5% per year. Ghana’s salt industry is a rare gem that could be a game changer for our economy. Now is the time to harness this resource for industrial transformation, renewable energy development, and economic growth,” IMANI Africa concluded.
