Manufacturing of
Switchgear Cabinets in Ghana

A growing demand for modern electrical installations

Industrialisation in Ghana is progressing, and many companies are investing in technical equipment and modern electrical installations. This also includes switchgear cabinets and fuse boxes, which have so far been almost exclusively imported – mainly from China. In recent years, demand has been rising at an annual rate of around 10 per cent.

But there are neither domestic manufacturers nor enough electricians that have the necessary qualification to design, build, and install the systems professionally. Especially switchgear cabinets, which come in different sizes and designs, have to be configured individually according to the needs of the customers. Despite the growing demand, the lack of qualified technicians and the great dependence on imported products leads to investment obstacles on the part of many companies. With the support of Invest for Jobs, the company Process and Plant Automation Ltd (PPA) wants to change this.

From sheet steel fabrication to assembly: Switchgear cabinets from Ghana

PPA has been implementing electrical solutions for industrial and building automation in Ghana since 2003. Together with the consortium partner Electrical Switchgear Ltd. (ESL) PPA is now also investing in the development of production capacities for processing steel sheets that will be used to build switchgear cabinets. Invest for Jobs is contributing to the investment costs. In the new production facility, the steel sheets are formed, cut, joined and painted or powder-coated. The subsequent installation of the electrical equipment and wiring of the components will take place at PPA's own site and at the ten existing distribution centres outside Accra. Electrical components from different companies will be used for this. Both consortium partners belong to The Automation Ghana Group (TAGG).

Another important component of the investment project is the further training of young electricians. They will learn to install the electrical components in the switchgear cabinets manufactured by PPA. The training is free of charge and takes place at the distribution centres in Accra as well as in other parts of the country. The participants will acquire the skills they need to use the products of all common manufacturers and will be able to install and maintain switchgear cabinets and control systems that are geared to the needs of private households, offices, and industrial enterprises. The trainings are conducted in cooperation with the Certified Electrical Wiring Professionals Association of Ghana (CEWP) and follow international standards for low-voltage switchgear.

New jobs with consortium partners and installation companies

Consortium partners PPA and ESL will create 122 new jobs within three years of the start of production, about half of them for young adults who are about to enter the workforce. In addition, 83 companies that will work with PPA's products have pledged to hire more than 500 additional workers. Participants in the training courses are expected to be able to significantly increase their individual incomes through the newly acquired skills. The project is supposed to help relocate an important part of the industrial electrical value chain to Ghana. In addition, the configuration of the cabinets is to be simplified and further professionalised.

The total investment for the expansion of the production facilities and the training of electricians amounts to 3.33 million euros. The Facility Investing for Employment grants a subsidy of 1.58 million euros (48%) to co-finance the construction measures and the acquisition and installation of machines and other equipment.

The Facility Investing for Employment (IFE) of KfW Development Bank is part of the Special Initiative "Decent Work for a Just Transition" of the German Federal Ministry for Economic Cooperation and Development (BMZ). With its support, the Facility wants to remove barriers that prevent the creation of new and better jobs in the private sector in the African partner countries.