Ghana Moves to Revive Ghana Cylinder Manufacturing Company with $6M Funding

John Abdulai Jinapor, Ghana’s Minister for Energy and Green Transition, has revealed that the government has secured $6 million of the estimated $8 million needed to rehabilitate the Ghana Cylinder Manufacturing Company (GCMC).

The Minister confirmed that retooling works at the state-owned factory are already in progress, part of a broader initiative to restore operations and strengthen local capacity to produce LPG cylinders.

Speaking in Parliament, Dr. Jinapor explained that the intervention aims to boost domestic manufacturing and enable the company to meet national demand for gas cylinders.

“We’ve been able to mobilise about $6 million for them, and the retooling is going on. In fact, if you look at what they’ve produced this year, it’s more than double what happened in 2024. And so we are on course to revamp Ghana’s cylinder, we are on course to retool it,” he said.

He added that the government’s long-term plan is to eventually ensure that all LPG cylinders used in Ghana are produced locally.

The Minister also indicated that, once domestic production reaches sufficient levels, authorities may consider a gradual ban on imported cylinders to support local industry and retain value within the economy.

“We are giving them off-taker agreements and setting an escrow account. As part of the cylinder recirculation model, I’ve issued a directive to recall all old and obsolete cylinders, so Ghana’s Cylinder can retrofit them and make them useful. We’ve also signed an agreement with Goyal, which will serve as the off-taker for the cylinders under the recirculation program,” Dr. Jinapor added.

The rehabilitation of GCMC is part of a wider government effort to revitalise strategic state-owned enterprises, advance industrialisation, and reduce dependence on imported petroleum-related equipment.

Enhancing local LPG cylinder production is also expected to support Ghana’s clean cooking initiatives by improving access to safe and affordable gas infrastructure while generating employment opportunities in the manufacturing sector.

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