Three African business giants, Jospong Group, Scaw Metals Group and Guma Group, on Wednesday announced investing US$40 million in the Ghanaian economy.

The investment is tailored at stimulating growth in the local steel industry to produce metals to service companies in the West African region, especially those in the mining sector.

Jospong Group, a wholly Ghanaian firm, has a 30% stake in the deal, with the remaining 70% going to the South African firms. The three would now operate under the business name Guma Jospong Consortium.

The consortium has been given first preference to supply products and services during and after the facility's construction, and is also expected to bring additional investment to Ghana by increasing the steel products 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 coils, etc

As part of the deal, South African steel products manufacturer, Scaw Metals Group, would construct a new grinding media plant with a 5,000 tonnes per annum roller-former production facility at Tema, which would produce media in the sizes ranging from 38mm to 76mm in diameter.

Construction of the facility, which would commence early 2014, is expected to be commissioned eighteen months later.

More than a hundred people are expected to be employed during the initial phase of the project, with forty-two direct jobs expected to be created once the plant comes into operation.

The deal would also see South African experts train and transfer the process knowledge to their Ghanaian locals, leading to the eventual handover of the facility under their care.

Scaw Metals Group is the largest producer of cast high chrome grinding media in the southern hemisphere, with more than 80 years of experience. It is the leading integrated producer of specialty steel products for the mining, construction, industrial, power and rail sectors.