The recently established industrial salt production plant, valued at US$88 million and located in Ada within the Greater Accra Region, has the potential to emerge as Ghana’s primary export commodity to the African market under the Africa Continental Free Trade Area (AfCFTA) agreement, according to its owners.
This project is anticipated to contribute approximately US$2 billion to the national economy in the short-to-medium term. Consequently, salt, often referred to as ‘white gold,’ is expected to become one of Ghana’s principal sources of foreign exchange by 2026, especially when the Ada Songhor Salt project, owned by Electrochem (a subsidiary of the McDan Group of Companies), reaches full completion.
Initially, the plant has a production capacity of one million metric tonnes of salt per year, with plans to scale up to around two million tonnes by 2025. The concession, however, has an ultimate capacity of 15 million tonnes per year upon the completion of all phases.
Given salt’s essential role in food security and industrialization across the African continent, the long-term target of 15 million tonnes is projected to meet the demands of numerous countries on the continent. Notably, Ghana and Senegal are the only West African nations with natural salt mineral resources.
During the project’s launch, Minister of Trade and Industry, Kobina Tahir Hammond, mentioned that it could contribute approximately US$2 billion to the Ghanaian economy in the short-to-medium term while potentially creating more than 10,000 direct and indirect job opportunities in the near future. He also highlighted that Nigeria, a major salt consumer in Africa, imports over 1.5 million metric tonnes annually, with more than 80 percent of its industrial salt needs coming from Brazil. Electrochem is encouraged to explore opportunities in the Nigerian market.
Chairperson of the McDan Group of Companies, Daniel McKorley, described the Electrochem project as a game-changer for economic growth during an interview with B&FT.
“With deliberate efforts and the right financial facility, we can easily scale up this project to the 15 million m/t per annum in five years. With the completion of this phase one, we are currently creating about 3,000 jobs. And the most important thing is that it doesn’t require a degree to work here; this is the kind of job that members of this community need. About 98 percent of the workforce here will not require a degree to work, and that is what creating jobs means for a country like Ghana,” he said.
He described the project’s three phases: production of salt, establishment of a world-class salt refinery, and construction of a chlor-alkali plant to meet the highest industrial demands.
“AfCFTA is a huge market. It has given us a door into the African market, and McDan has been a pioneer since trading started… every industry needs salt, and salt has over 14,000 uses. It’s a critical resource for the manufacturing industry; even the recent COVID-19 vaccines from Morrocco relied on salt, so the potential to grow industries and our economy is enormous,” he stated.
Mr. McKorley made a request to the government for help with investments and the creation of fundamental infrastructure that supports them. “We humbly request government to construct the Ada West jetty, which is crucial for our expansion plans and the road network in the Ada area to aid in the transportation of products,” the company said.
Community impact
Being an organization committed to adhering to environmental, social, and governance (ESG) principles, Electrochem places significant importance on the sustainability of the local communities situated around its operational zone. In line with this commitment, the company has undertaken the initiative to establish more than 70 salt banks for seven communities along the Songor Lagoon. Each of these communities has the capacity to produce up to 260,000 tonnes of salt during each harvest season.
Daniel McKorley, the Chairman of McDan Group of Companies, stressed that his vision for the development of human capital and the socioeconomic empowerment of the Ada communities remains incomplete without the establishment of a Chemical Research University in Ada.
The salt concession encompasses an expansive area of approximately 41,000 acres, spanning across both the Ada East and Ada West local government administrative districts within the Greater Accra Region. Remarkably, in terms of acreage, this project is the largest in Africa but has remained inactive as an industrial salt-producing region since 1982.
Expressing his sentiments, Paramount Chief of the Ada Traditional Area, Djetse Nene Abram Kabu Akuaku III, expressed deep gratitude on behalf of the Ada Traditional Council for the establishment of the salt mine and processing plant. He commended the investment and development prospects that this project brings to the region.