By our Business & Industry Correspondent
The Ghana Integrated Aluminium Development Corporation (GIADEC) has moved to quash persistent rumours and public speculation regarding the imminent sale of the state-owned Volta Aluminium Company (VALCO).
In a firm rebuttal, the corporation labelled such reports as “false,” seeking to clarify what it terms a crucial “strategic equity partnership” vital for the smelter’s survival and Ghana’s industrial ambitions.
The controversy stems from a confidential, multi-ministry committee’s recent evaluation of bids from international entities interested in VALCO. Sources close to the process confirm that a front-running investor has now been shortlisted for final negotiations.
GIADEC’s Chief Executive, Reindorf Twumasi Ankrah, insists the goal is not a divestiture but a structured “partial equity ceding arrangement” that would inject substantial capital and advanced technology into the struggling smelter while leaving the government, through GIADEC, with majority ownership and strategic control.
VALCO’s financial woes are no secret within industry circles. A 2022 audit by KPMG, commissioned by the government, concluded that bringing in an equity investor was the most viable route to revive the company.
This recommendation formed the basis for a cabinet approval the same year. The urgency has only intensified. GIADEC’s statement points to a grim 2025 financial statement for VALCO, underscoring an “urgent need for such a partnership to halt further decline.”
The envisioned deal is central to GIADEC’s master plan for a fully integrated aluminium industry from bauxite mining in Atewa and Nyinahin to alumina refining and smelting. The retrofit and expansion of VALCO is the critical smelting component.
The corporation promises a transformation: boosting annual production capacity from a mere 40,000 tonnes to 300,000 tonnes within three years, safeguarding existing jobs, and creating “thousands” of new direct and indirect positions.
To manage the sensitive process, a twelve-member cross-sectoral committee was formed in 2025. It included representatives from the Ministries of Lands and Natural Resources, Energy & Green Transition, Finance, and Trade, alongside officials from GIADEC and VALCO itself.
Its mandate was to assess proposals against strict national criteria, including job creation, technology transfer, value addition, and alignment with the government’s “24-hour economy” policy.
The committee has since submitted its report and recommendations to the GIADEC board and the sector minister. While the identity of the shortlisted investor remains confidential, the process appears designed to deflect accusations of opaque dealings that have dogged previous state divestitures.
The government is treading carefully. VALCO is not just an industrial asset; it is a potent symbol of Ghana’s post-independence industrial dreams. Its location in Tema and reliance on Volta River Authority power also tie it deeply to the nation’s energy and employment landscape. Any perception of a “sale” would be politically incendiary.
GIADEC’s forceful denial is thus a pre-emptive political manoeuvre as much as a corporate clarification. The statement directly assures VALCO staff that the partnership “will not create job losses but rather, create more jobs and improved working conditions,” a clear attempt to calm union anxieties.
The path forward is now one of negotiation. If successful, this partnership could mark the long-awaited revival of VALCO, providing the anchor for Ghana’s integrated aluminium ambitions. If it falters, either in final terms or public perception, the smelter’s future and a cornerstone of the government’s industrial policy faces renewed uncertainty. For now, GIADEC is betting that a blend of private capital and retained state control can resurrect this industrial giant.