Robert Gumede’s vision of building a Pan African investment vehicle via the Guma Group has received a shot in the arm after landing a steel deal to venture into the oil rich Ghana.
An announcement released yesterday has Guma partnering with South African steel manufacturer Scaw Metals and the Jospong Group of Companies to set up a R400m plant in Ghana.
The announcement released by Scaw Metals said the company will construct a new grinding media plant in Tema, Ghana. “This new plant seeks to significantly increase the company’s grinding media capacity on the African continent. This move, valued at more than US$40m, is done in partnership with the Guma Group, a South African player, as well as the Jospong Group of Companies, which is based in Ghana.”
The announcement said the consortium will bring additional investment to Ghana by increasing the steel product range, through a company which will produce other steel related products including Rolled Products; long steel products, reinforcing bars, low and high-carbon wired rods, reinforcing coil, etc.
“Our investment showcases the value that partnerships between the private and public sector can bring to infrastructure development in Africa,” said Gumede.
This plant serves as a catalyst for the further enhancement of business to business relationships, which is much needed for job creation and trade in the region.”
Gumede‘s march largely represent the changing face of the South African economy. He is part of a new class, few it must be said, of black businessmen who have broken into the mainstream commercial activity and are now looking for a place within the industrial sector and across the continent. Gumede will be largely known for leading the development of an ICT company Gijima into the JSE.
His investment vehicle, the Guma Group, is tagged as a Pan-African, black owned multi-disciplinary investment company with operations globally and across the African continent. The group is said to employ over 12 000 people and focusing in energy power generation, ICT, infrastructure development, tourism, property real estate and shopping centre development.
Yesterday’s announcement said the Tema plant, with an annual capacity of 50,000 metric tons, should become operational within 18 months and will offer significant job opportunities in the local community.”
The Scaw Metals Group is the largest producer of cast high chrome grinding media in the southern hemisphere and is the leading producer and supplier of high chrome and forged grinding balls primarily to the African platinum, copper and gold mining industries.”
We are delighted that we will be opening a plant in Ghana and this is outbound investment for a South African entity,” said Markus Hannemann, Chief Executive of the Scaw Metals Group.
The Ghanaian government has made a great push for the local manufacturing industry to stimulate economic growth and provide job creation.”
He noted that Scaw Metals already has a presence in Ghana. The company’s Ghanaian operation was registered in 2011 as a regional sales office to service the West African region. With offices in Tema, Scaw Ghana functions as a local point of contact for all of the products manufactured in South Africa by the Scaw Metals Group that may be in demand in the region.
“From our experience in Ghana thus far, we are certain that we will be able to fully utilise the vast potential in the region. The skills development we will be providing for the employees of the plant will make sure that our plant will have world-class standards and have a significant knock-on effect in the local community,” said Hannemann.
“We are looking forward to the partnership with the Scaw Metals Group and supplying the region will grow the business further. We will also look for other steel beneficiation opportunities in Ghana”, says, Joseph Siaw Agyepong, Chairman, Jospong Group of companies.