President John Dramani Mahama has announced plans by government to introduce a Local Content Bill that will ensure mining support contracts are awarded to Ghanaian companies.
According to the President, the move forms part of efforts to increase local participation in the mining sector and ensure that more of the benefits from the country’s natural resources remain in Ghana.
Speaking during an engagement with members of the Ghanaian community in the United Kingdom, Mr. Mahama said Ghana has developed the capacity and expertise needed to undertake many of the support services associated with mining operations.
“We are also passing a Local Content Bill. That means that all the ancillary work and subcontracting in mining must be given to Ghanaian companies,” he stated.
The President explained that for many years, some foreign mining firms created subsidiaries abroad and awarded contracts to those companies, resulting in profits leaving the country instead of benefiting local businesses.
He noted that Ghana now has qualified geologists, engineers and indigenous firms capable of handling mining-related services such as hauling, drilling and blasting.
“Ghana has more than enough geologists, we have civil engineers, we have companies that are capable of doing all that subcontracting,” he said.
Mr. Mahama stressed that while foreign companies may continue to undertake the core mining activities, support services should increasingly be reserved for local firms to promote job creation and economic growth.
“So we are saying that you do the mining and make your profits, but the subcontracting work, hauling, drilling and blasting, must be done by Ghanaian companies so that a component of the profit of mining remains locally in our country,” he added.
The President said the policy is part of broader reforms aimed at increasing local value addition, boosting Ghanaian enterprise and ensuring that the country derives greater benefits from its mineral resources.
