Ghana’s salt industry is on the brink of a major transformation, with IMANI Africa endorsing Electrochem Ltd’s ambitious expansion plans for the Songor Lagoon. The company’s goal to ramp up production to 1.5 million metric tons annually by 2028 could generate over $1 billion in revenue, drastically improving Ghana’s foreign exchange earnings. IMANI’s support signals a strong belief in the project’s potential to drive substantial economic growth in the region.
The endorsement comes as the country aims to unlock the full potential of its salt resources, potentially adding an extra $1 billion in foreign exchange earnings annually.
Ghana’s salt industry, primarily driven by solar evaporation, has been operating well below its potential. Despite the country producing around 250,000 metric tons of salt annually over the last decade, exports in 2022 amounted to just $4.36 million, a mere 0.022% of Ghana’s total export earnings.
This stark gap between potential and actual output has long been seen as a missed opportunity for the nation’s economy.
Electrochem Ltd, a Ghanaian-owned company, recently secured a lease for the Songor Lagoon, one of West Africa’s largest natural solar salt basins.
This concession positions Electrochem to significantly increase salt production, with plans to boost output from the current 150,000 metric tons annually to 400,000 metric tons by 2025/6.
The company’s focus will shift from domestic supply to targeting the international export market with industry-grade salt, setting new quality standards for the mineral commodity.
The initial revenue projection for 2025 is estimated at $350-400 million, based on the upgraded production capabilities.
However, with continued investment and infrastructure development, Electrochem aims to ramp up production to 1.5 million metric tons annually by 2028.
This expansion could see the Songor area alone generating over $1 billion in annual revenue, a significant boost to Ghana’s foreign exchange earnings.
IMANI Africa’s endorsement highlights the critical role of Electrochem’s project in transforming Ghana’s salt industry, urging stakeholders to support the initiative that promises to bring substantial economic benefits to the country and the broader African continent.
