Electrochem targets $25m in planned IPO

West Africa’s largest salt production firm, Electrochem Ghana, has revealed that the government’s decision to dissolve the board of the Securities and Exchange Commission (SEC) has delayed its plans to list on the Ghana Stock Exchange (GSE).

$445m more required
The company, which has already invested over $88 million requires approximately $445 million to complete engineering works, acquire vessels, and construct a salt refinery, had initially planned to go public in August 2024.
However, with the SEC board’s term ending in June 2024 and a new board yet to be constituted, the process has been put on hold.
Electrochem, a subsidiary of the McDan Group of Companies is seeking to raise $25 million through an Initial Public Offering (IPO) by issuing cumulative preference shares, which will convert into equity upon completion of the listing process.
Speaking to a delegation from the Minerals Income and Investment Fund (MIIF) after a tour of the company’s mining site, McDan Group’s Chief Executive, Kwaku Ampromfi, expressed the company’s readiness to resume the listing process once the new SEC board is in place.
“Our original plan to go public was scheduled for August 2024, but by June, the SEC board’s term had ended, leaving no governing body to oversee the process. So, we decided to wait for the new board to be appointed. The prospectus is ready, so from our end, we are good to go,” he stated.
Strategic investment and national impact
During a visit to Electrochem’s production site in Ada in the Greater Accra Region, MIIF’s Acting Chief Executive, Justina Nelson, emphasized the government’s commitment to facilitating the listing and ensuring adequate funding for the company’s expansion.
She noted that one of the conditions for MIIF’s investment in Electrochem is for the company to list on the Ghana Stock Exchange to enhance transparency and generate returns for stakeholders.
“This is a viable project for the country, and this tour is timely because MIIF has a stake in Electrochem. Having assumed office, it was important for me to take this tour.
“We want to intensify our royalty collections not just in Electrochem but across all mineral resource companies where we have investments.
“We have had extensive discussions behind the scenes to ensure Electrochem lists on the GSE to generate dividends for the government and the people of Ghana,” she stated.
As of the end of 2024, MIIF’s total investment in Electrochem stands at GH¢363 million, reinforcing the government’s belief in the project’s economic viability and its potential to transform Ghana’s salt industry.

A vital economic driver under threat
Electrochem Ghana has revolutionized Ghana’s salt production industry, operating under a 15-year mining lease ratified by Parliament.
The company employs approximately 1,800 permanent workers and engages over 3,000 casual laborers during the salt mining season.
With an annual production capacity of 650,000 metric tonnes of high-purity salt (99.99%), Electrochem is on track to become Africa’s largest salt producer by 2027, targeting an output of two million metric tonnes per year.
Beyond salt production, Electrochem has had a significant economic impact through job creation, community development, and national revenue generation.
Between 2021 and 2024, the company has paid over GH¢6.1 million in royalties and ground rent, with GH¢3.4 million allocated to royalties and GH¢2.7 million for ground rent.
Additionally, the company has been a major force in social responsibility.
It has provided a GH¢3 million grant to empower women entrepreneurs, with plans to increase the fund to GH¢10 million.
Furthermore, Electrochem has invested in local infrastructure, including potable water systems, health clinics, and schools in Ada, to improve the living standards of surrounding communities.

Environmental restoration and sustainability efforts
Electrochem’s environmental initiatives have rejuvenated the Ada Songor Lagoon, providing sustainable livelihoods for over 300 fishermen.
The company’s reforestation and land reclamation efforts are crucial in balancing industrial expansion with ecological preservation, ensuring that Ghana’s natural resources are responsibly managed.
The company’s commitment to sustainability, economic growth, and social impact underscores the importance of securing additional funding.
With the SEC board’s reconstitution on the horizon, Electrochem is optimistic that its listing on the Ghana Stock Exchange will soon materialize, unlocking new investment opportunities and driving Ghana’s industrial growth forward.