Springs & Bolts: A small company with huge ambitions
Located in the Ashanti region, Springs & Bolts Company Limited is a fully Ghanaian-owned manufacturing company that produces automotive parts for the large and expanding heavy haulage truck industry. Around 80 per cent of its products are exported to neighbouring countries and 20 per cent are marketed locally.
A benchmark for sustainable automotive manufacturing
Based on a 2021 market feasibility study, Springs & Bolts developed an expansion plan to improve its production capacity to meet the increasing demand for its products. At the core of this expansion is the construction of a new, decarbonised and fully automated plant in Kumasi, utilising a power mix that includes solar energy. This new plant is expected to increase the daily production capacity from 4.5 to 28 metric tonnes, translating into a 662 per cent increase in the production of key items such as leaf springs and u-bolts.
“The feasibility study revealed that, as a manufacturing company, there is actually very little competition. Most of what we do in the automotive sector in Ghana is import, we don’t really manufacture much, and that puts a lot of pressure on our local currency. Because we were already manufacturing, we decided to be ambitious and to improve our production through this expansion plan.” Derrick Asamoah Boahen CEO
The number of employees is also projected to grow. Springs & Bolts expects to increase its workforce from 30 to 600 over the next six years, and the company is determined to achieve a 50:50 gender balance. Ultimately, Springs & Bolts wants to become a benchmark for sustainability and inclusion in the automotive manufacturing sector in Ghana and West Africa.
Meeting global environmental standards for manufacturing
Ambitions, of course, usually go hand in hand with challenges and costs. An initial screening by a potential investor revealed a number of gaps in meeting the stringent global environmental standards for manufacturing—a key barrier to successfully attracting investment. Addressing these gaps through the development and implementation of a globally acceptable Environmental and Social Management System (ESMS) would significantly increase the company’s competitiveness and support its goals of environmental stewardship. What is more, it would move Springs & Bolts one step closer to securing the growth capital required for the company to realise its ambitions.
Springs & Bolts CEO, Derrick Asamoah Boahen with Harriet Thompson, the former UK High Commissioner to Ghana. Springs & Bolts was transitioned to GhISP by the UK’s Foreign, Commonwealth & Development Office’s JET Programme for continued technical assistance, showcasing the strong collaboration between UK programmes in driving SME investment in Ghana.
Technical assistance to improve Environmental, Social and Governance performance
Growth Investment Partners (GIP) Ghana, an investment platform established by British International Investment (BII), had expressed interest in providing capital to Springs & Bolts but required the company to institute an ESMS to help manage the identified environmental risks. Over the past year, GhISP has worked closely with Springs & Bolts to develop and deliver technical assistance to help the company proactively manage Environmental, Social and Governance (ESG) performance at its current production site, apply consistency across operations in the application of ESG standards and practices, and ensure high standards of performance for any expansion and development.
“GhISP helped us prepare to qualify for funding from GIP. They assessed our entire programme, did due diligence to determine gaps and challenges, and gave the guidance to address these gaps.” Derrick Asamoah Boahen CEO
GhISP’s technical assistance included an initial gap assessment, on-site factory visits and a structured plan to address ESG deficiencies, and it culminated in the adoption of an ESMS—developed in partnership with IBIS Consulting—tailored to meet GIP’s investment requirements.
“The ESMS is very important. We want to grow as a company and to increase our exports and, for this, we need international certifications such as ISO. And in order to secure the ISO, we very much need the ESMS. It is also a key requirement for most funding institutions. GHISP has been the bedrock in preparing us for the GIP funding and also helping us with so many other things.” Derrick Asamoah Boahen CEO
Construction of Springs & Bolts’ new plant is underway, expected to be completed by early 2026. Funding from GIP is earmarked for the new machinery and equipment.
Enhanced ESG compliance unlocks investment approval
Not only did Springs & Bolts succeed in securing investment approval from GIP—with the first disbursement already done—but the implementation of a robust ESMS has equipped the company with lasting institutional capacity. The new policies and procedures developed as part of the technical assistance has positioned the company to effectively address vital areas such as waste management, occupational safety and environmental safeguards.
“With the ESMS implemented, we've changed so many things that we used to do. It has made our environment very good. We will create better jobs and safer jobs for our people. They will be better protected, and the environment and our neighbours are also protected from pollution.” Derrick Asamoah Boahen CEO
The company is now confident in its ability to pitch to other ESG-conscious investors beyond GIP, leveraging its improved ESG credentials.