The Ghana Integrated Aluminium Development Corporation (GIADEC) is revealing that the country will still hold a significant equity in the Volta Aluminium Company (VALCO) despite the imminent partnership with a strategic investor.
Amid speculations, GIADEC has confirmed that the government is indeed working in partnership with a strategic investor to revive the underperforming company, which many describe as a “sleeping giant.”
In a statement on Tuesday to clarify the speculations, the corporation pushed back firmly against growing public speculation that VALCO is being sold, insisting that the state will continue to hold a significant ownership stake even as it brings in a strategic equity partner.
GIADEC described claims of a VALCO sale as false, stressing that the government’s core intention is not to relinquish control of the strategic asset but to secure its long-term survival.
The corporation said the planned partnership will involve ceding only a portion of equity, while the government, through GIADEC, retains “significant ownership and strategic control” of the smelter
“GIADEC can confirm that as part of ongoing processes for the construction of a greenfield Alumina Refinery in Ghana and the retrofitting of VALCO, a strategic equity investor has been shortlisted for further engagements on the plan to retrofit and expand VALCO. This planned partnership aims to secure the capital and expertise necessary to retrofit and expand VALCO’s operations, increase production, safeguard existing jobs, and contribute to Ghana’s industrial growth,” the statement noted.
It further clarified that, “The strategy involves a partial equity ceding arrangement that will provide liquidity while ensuring the Government, through GIADEC, retains significant ownership and strategic control to drive future growth.”
According to GIADEC, the move to engage a strategic equity investor is driven by necessity rather than choice. VALCO’s financial position, including its 2025 statement of financial position, shows a company in urgent need of capital to halt further decline and restore productive capacity.
Without external investment and modern technology, the smelter risks stagnation at current production levels of about 40,000 tonnes annually.
However, conspicuously missing in GIADEC’s statement, which is emphatic on intent and direction, are very important details of such a partnership. No details are provided on the size of the expected investment, the percentage equity stake to be held by the government versus the strategic partner.
Also, it fails to indicate the valuation of VALCO under the proposed arrangement. These omissions leave key questions unanswered and may continue to fuel public curiosity and debate.
That notwithstanding, GIADEC says the proposed partnership is a rescue and expansion mission. The corporation further notes that the investor is expected to bring in substantial capital and technical expertise to retrofit and modernise VALCO, with the ambitious target of raising annual production to 300,000 tonnes within 36 months.
The plan also promises job security for existing workers and the creation of thousands of new direct and indirect jobs, particularly for the youth. The VALCO retrofit is described as a critical pillar of Ghana’s long-term strategy to build a fully integrated aluminium industry, spanning bauxite mining, alumina refining, aluminium smelting, and downstream manufacturing.
GIADEC is emphatic that VALCO is not being sold; instead, the government is seeking a partner to revive, expand, and modernise the smelter while maintaining a significant ownership position.
