The government says it is collaborating with the country’s mining sector and other domestic business to set up a national programme to support the development of world class and competitive supply chains.
The main idea behind such a partnership is to use the mining sector as a launching pad to stimulate economic linkages, so that Ghana can become a supply hub for large mining industries operating locally and beyond it frontiers
Speaking on behalf of Vice President Dr. Mahamudu Bawumia at the official launch of the Ghana National Supplier’s Development Programme (GNSDP) in Accra , the Minister of Planning, Prof. George Gyan Baffour, noted that the initiative comes at an opportune moment, as the government is stepping up all efforts to create a sustainable basis for a more industrialized and diversified economy.
“The initiative builds and expands on existing policies, such as the local content policy, the One District One Factory Policy, the Strategic Anchor initiative and our determination to develop clusters across the country. It is also built on existing initiatives that mining companies have successfully rolled out at the levels of their mines,” he said.
According Prof. Baffour, the government is laying down the foundations to change the country’s economic trajectory and setting up of the National Supplier’s Development Programme will no doubt catalyze Ghana’s industrial development.
He then revealed that the government is working very closely with other international partners to gather the best technical knowledge and support to turn the country into a competitive supply hub.
“I would like to acknowledge the support of two institutions. First, the Africa Minerals Development Centre has provided support in providing a complete diagnosis of the mining industry and the potential for upstream linkages for our local industry. Second, the African Center for Transformation (ACET), as the leading think tank for structural transformation of the continent’s economies, has been keen partner in this effort leveraging its multi-country work on local content and value addition in minerals. Oil and gas sector not only in Ghana but throughout the continent. Our government looks forward to these two Pan-African institutions to accompany us in the journey towards a structurally transformed and industrialized economy,” he added.
The Deputy Minister of Trade and Industry, Robert Ahomkay-Lindsay, on his part, during the program launch, acknowledged the importance of the Ghana National Supplier’s Development Programme and mentioned that a national approach towards an organized supplier development programme that will drive industrial development through a well-organized supply chain approach, like the GNSDP, is welcoming, and further believes that a well engaged GNSDP will cultivate new businesses through the pursuit of new opportunities, effective supply chain management and the utilization of comprehensive capabilities and an enhanced capacity towards meeting industry requirements and need.
“The launching of the Ghana National Supplier’s Development Programme comes in handy as an inclusive approach towards organizing enterprise to enterprise supplier system that will make industry especially the mining sector reap the benefits of engaging suppliers especially local SMEs.
“Overall we anticipate that GNSDP would collaborate with key stakeholders like the Ministry of Trade and Industry which is also developing an Industrial Subcontracting and Partnership Exchange Programmethat aims to create a supplier/buyer platform. This platform will effectively lay the basis for suppliers (SMEs) and buyers (Large Scale Enterprise, LSEs) to engage on an electronic system,” he stated.
With annual mining procurement exceeding $1 billion, the launch of the National Suppliers’ Development Programme (NSPD) aims to secure a greater share of this market for Ghanaian firms. The Ghana government endorses the NSPD because of its alignment with the government’s own priorities of private sector-led industrialization and economic transformation.
The meeting organised jointly by the African Minerals Development Centre (AMDC), based in Addis Ababa, the Accra-based African Center for Economic Transformation (ACET) and the German Federal Institute for Geosciences and Natural Resources (BGR) in Hannover brought together ministers, senior public and private sector representatives to discuss how domestic manufacturers and suppliers of goods and services can take advantage of the great opportunities along the mining value chain to generate growth and create jobs.
Ghana is the second largest gold producer in Africa after South Africa and 11th in the world. But according to AMDC coordinator,KojoBusia, “we see a lack of transformation very acutely in Ghana. While world-class mining supply and processing firms have emerged in South Africa, Chile and other mineral-producing countries, Ghana’s mining sector inputs are mostly procured abroad, and its minerals are processed abroad.”
Noting Ghana’s vulnerability to commodity price fluctuations, ACET director of policy advisory services Ed Brown says, “To build resilience to external shocks, the country has to transform its economic structure by shifting from the ‘revenue first’ approach to the mining sector to deepening local content and value addition.”