Guinness Holds Raw Materials Sourcing Workshop

Peter Ndegwa speaking at the event.
Guinness Ghana Breweries Limited (GGBL) has held a workshop on Local Raw Material (LRM) sourcing in Accra to dialogue with key stakeholders on transforming Ghana's agriculture supply chain for industry, as well as showcase its local sourcing agenda.

Since December 2014, GGBL has significantly increased its usage of local raw materials, specifically sorghum, maize and cassava for the production of its premium brands after the Government of Ghana passed the Customs and Excise Act 855, an excise duty concession on a sliding scale for breweries using local raw materials for the manufacture of excisable goods.

Peter Ndegwa, Managing Director of GGBL said 'Across Africa, on average, our parent company, Diageo sources 50% of our raw material from local sources, and has ambitions to increase this to 70% by 2015. In Ghana, GGBL currently sources over 40% of raw materials locally.  We are confident we can achieve our 50% target by end 2015 with the support of all stakeholders.'

He further added that 'we believe that harnessing the economic power of agriculture and the multiplying effect of investment into commercialising agriculture in Africa could be much bigger than the economic impact of petroleum.'

GGBL's vision is to generatelong-term business value with locally and sustainably sourced raw materials which meet quality standards and have a positive impact on the communities and environment in which it operates. So far the project has impacted over 16,300 farmers and families providing a sustainable source of livelihood, and expanded the revenue base whilst adding value across the chain.

In attendance were Mona Helen Quartey, Deputy Minister of Finance, Dr. Larbi Siaw, Senior Tax Policy Advisor – Ministry of Finance, Seth Twum Akwaboah, Chief Executive Officer (CEO) Association of Ghana Industries (AGI), as well as  representatives from the Ministries of Trade and Industry, Food and Agriculture, aggregators, processors and technical development partners.

Dr. Larbi Siaw indicated government's continued commitment to support local raw material sourcing and urged GGBL to continue in its efforts to develop Ghana's local supply chain.