IFC to support growth of local businesses in mining

Accra, Sept 23, GNA – The International Finance Corporation (IFC), a member of the World Bank Group, has signed an agreement with the Ghana Chamber of Mines and the Minerals Commission of Ghana to support the growth of businesses working in the mining industry.

The objective of the Agreement is to design and implement a local supplier development programme to build the expertise of local businesses working in the mining industry's supply chains, and promote Ghana as a leading African destination for mining investment.

Ms Bertha Moniba, Acting Country Manager of IFC, signed on behalf of the IFC whiles Ms Joyce Aryee, Chief Executive Officer (CEO) of the Ghana Chamber of Mines, signed on behalf of the Chamber and Mr Ben Aryee, CEO of the Minerals Commission of Ghana signed for the Commission.

The agreement was signed at a World Bank workshop in Accra to discuss a study on increasing local procurement by the mining industry in West Africa to ensure that mining contributes to sustainable economic growth and human development in the sub-region.

It was attended by policy makers, the private sector, and civil society groups involved in the mining sector in the sub-region.

Ms Moniba said, "Spreading the benefits in the oil, gas and mining sector is an important priority for IFC in Ghana. Together with the Chamber of Mines and the Minerals Commission, we are supporting the development of local businesses through training programmes that meet the needs of mining sector firms in a sustainable way."

She said “IFC's Sustainable Business Advisory works with firms and sectors to develop inclusive, environmentally sustainable and efficient markets.

Building on IFC's environmental and social performance standards, it promotes sustainable business practices in mining as well as other sectors such as agribusiness, infrastructure, oil, gas, manufacturing and services.

Ms Aryee said "Mining firms operating in Ghana are committed to supporting the development of a programme to improve the capacity of local manufacturers of products and providers of services to create competitive Ghanaian suppliers.”

She said “Ghana has a large, well-established mining sector which provides jobs, government revenues, and has significant opportunities for local businesses to become suppliers to the mining firms."

Mr Aryee said the government had already taken a proactive approach on the issue and agreed with the Ghana Chamber of Mines on a common framework to boost local procurement for the benefit of the whole economy.

He said there was the need for governments and policy makers to set the appropriate policy and regulatory context to encourage local procurement and provide a supportive enabling environment for enterprise development and investment.

This Agreement builds on the IFC-Newmont-Ahafo Linkages Programme, which supported job creation and growth in local businesses surrounding Newmont's Ahafo gold mine.

The three-year programme, which closed in 2010, trained 53 local enterprises, and created local procurement worth roughly million.

It was recognized by the World Business Council on Sustainable Development and the Chartered Institute of Purchasing and Supply as a top Small and Medium Enterprises linkages project.

GNA