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Bad laws hinder the scrap metal business



By Judith Gicobi

While the government’s decision to abolish the restriction on scrap metal export and deals it’s good news for scrap metal businessmen, that fraudulent sellers should be dealt with.

That can only be feasible if the most affected traders emerge from their cocoons and demonstrate a willingness to self-regulate and offer suggestions for how the trade may be conducted correctly.

Otherwise, the nation may be forced to choose between enabling the company and safeguarding essential infrastructure that has been targeted by unscrupulous dealers.

The government should concentrate on establishing policy standards to ensure that only genuine enterprises exist. This will make them detectable and prevent them from preying on steel-related strategic sites.

The Scrap Metal Act, which was passed in 2015, is yet to take effect, which is regrettable. It signifies that there are no rules governing the commerce. To ensure that the industry supports the nation well, legislation should be enacted. If there are any flaws, they should be addressed.

Despite all of the hype from the industry, the majority of traders are not authorized, making accountability impossible.

Only 20 scrap metal traders are licensed, and according to the State, 91 traders’ registrations are now pending, raising concerns about the industry’s readiness to be streamlined.

The government must rapidly encourage the business sector to participate and develop a multi-agency to address loopholes.

Most significantly, the state should make it simpler and provide more incentives to guarantee that more dealers are licensed and that those who refuse to follow the laws are barred from doing so. This is the only way to know where their metal comes from.

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