Ghana Steel Industry: Mukesh Thakwani of B5 Plus Talks Powering Progress and Shaping 2024

Interview with Mukesh Thakwani, Founder and CEO of B5 Plus Ltd

In our previous discussion, you mentioned plans for establishing a substation due to the ongoing electricity challenges. Could you provide an update on the progress?

We are pleased to share that GRIDCo has successfully completed the installation of the substation at B5 Plus Larkpleku’s new site. The installation is complete, and we are currently awaiting the final connection. We are proud to share that our Honorable Minister of Trade is actively engaged in discussions with ECG (Electricity Company of Ghana) to expedite the necessary government formalities. This is crucial for ensuring uninterrupted power supply, a significant challenge we have been facing. We are confident that the Minister of Trade will address this issue promptly, enabling us to enhance our production capabilities.

Did the Minister of Trade visit the B5 Plus site?

Yes, the Honorable Minister of Trade visited both our factories in Tema and Larkpleku a few weeks ago. We extend a big thank you to him for dedicating an entire day to the visit, during which he gained insights into our operations. He expressed pride in B5 Plus for its significant contributions to the Ghanaian economy.

Could you share insights into the decision to acquire United Steel and the associated needs?

United Steel was a company that existed before, and B5 Plus successfully acquired it through a close bid from the government a few months ago. Currently, we are proud to announce that what was once United Steel, now B5 Plus, used to employ around 400 people. Presently, B5 Plus is expanding its workforce, hiring more than 400 individuals. We are in the process of a significant overhaul, aiming to revitalize aspects ranging from the Steelmaking Shop (SMS) to the Continuous Casting Machine (CCM) and the rolling mill. This involves extensive civil works, including roof replacements and other structural modifications.

The process, though initially anticipated to be straightforward, has proven to be challenging over the last six months. We currently have over 400 Ghanaians working around the clock, supported by 40 to 50 expatriates whom we have brought in to facilitate the restart. The scope of work involves redoing everything, from electrical and mechanical components to civil structures. The team is putting in continuous effort, working 24 hours a day. We are optimistic that by next month, we should be able to conduct hot roll trials as part of our restart process.

One of your priorities is electricity, and there is persistent pressure regarding its installation on your premises. Can you shed light on the delays in getting this done?

It is indeed a technical issue, and we are equally puzzled by the prolonged delay in the connection process. That is why we have brought the matter to the attention of the Honorable Minister of Trade, seeking a swift and amicable resolution. Our aim is to expedite the electricity connection, enabling us to generate more employment opportunities and increase production in Ghana. The facility is ready, and we are only held back due to the electricity situation. Now that the substation has been built, all that remains is the connection. We are optimistic that in the coming weeks, as assured by the Honorable Minister of Trade, discussions with the Minister of Energy will lead to a resolution. This, in turn, will provide us with uninterrupted power, allowing for increased production of goods in Ghana.

We understand that you took the opportunity to discuss advocating for a ban on importing materials that can be produced locally with the Minister. Could you elaborate on that?

The Honorable Minister is well-informed about our stance on this matter. We emphasized the significance of local production, particularly in the field of prefabrication. Currently, we are not only catering to Ghana but also supplying to the entire West Africa region, including Senegal, Mali, Guinea, Ivory Coast, Togo, and Burkina Faso. Despite having the capacity, we are not operating at full capacity yet and are exporting to neighboring countries. Therefore, we urged the Honorable Minister to impose an immediate ban on the importation of any type of fabrication into the country. Simultaneously, we proposed a ban on products that we can locally produce, such as binding wire, wire nails, galvanized mesh wire, and more. Our plea to the Minister is to consider these measures, as it not only saves millions of dollars in hard currency but also contributes to job creation. We believe implementing these bans would be a win-win situation for the government, and we hope for swift action on this front.

We have noticed a significant expansion in the construction sector throughout Ghana. Construction is happening everywhere we look. How does this impact your business, considering you provide raw materials to this sector?

I would say that the construction sector is thriving, with a substantial demand for housing and industrial development, especially with the implementation of the 1D1F (One District One Factory) program. This initiative by His Excellency Nana Addo Dankwa Akufo-Addo has significantly boosted warehousing and various expansion projects. Ghana’s strategic location, coupled with favorable geopolitical conditions, further enhances the advantages for Ghanaians. We believe it is crucial for other investors to join in and contribute to creating a robust market here. This not only benefits the local market but also opens up immense potential. With Ghana’s favorable geographical location, we can not only cater to the West African market but also explore opportunities in the entire African market.

Looking ahead to 2024, what is your vision?

We anticipate that 2024 will be a positive year. Our personal belief stems from the numerous new projects the government is initiating, along with a significant influx of private investments. We hold an optimistic outlook for 2024, anticipating significant growth not only for our industry but also expecting a substantial boost for steel, cement, and other sectors due to anticipated government expenditures.

Given your involvement in CSR activities, could you elaborate on any upcoming plans or initiatives you would like to highlight?

B5 Plus consistently engages in various CSR endeavors, contributing to society in multiple ways. Whether it is offering free education, supporting competitions, collaborating with organizations, hosting free medical camps, or recently organizing a blood donation drive, B5 Plus is committed to active participation in social activities. We were honored with an award from the Ministry of Health for our contributions during the COVID period. During that time, we provided over two years of free oxygen to more than 100 government and private hospitals. Recognition for such noble causes motivates us to continually strive for excellence and ensure our ongoing commitment to benefiting society in our own way.

How do you perceive your personal success, not just in business, but in your overall accomplishments as a human being?

Feeling good is inevitable when the organization is prospering, and as its leader, that satisfaction is profound. As they say, tough times do not last, but tough people do. This year posed challenges for us in the steel industry, but we are persevering, and our outlook for 2024 is hopeful. I attribute all the credit to my dedicated team; without them, this would not have been possible. While 2023 presented its challenges, we are optimistic that 2024 will usher in opportunities and positivity, propelling us forward with a bang.

FAIR USE POLICY
This material (including media content) may not be published, broadcasted, rewritten, or redistributed. However, linking directly to the page (including the source, i.e. Marcopolis.net) is permitted and encouraged.