Linkages, investment and diversification in African mining: Ghana under the spotlight

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Cape Town, South Africa, 13 February 2016 (ECA) – Mining Indaba delegates were offered a sneak preview of some ground-breaking work in Ghana, designed to unpack new approaches to linkages, investment and diversification in the country’s minerals sector during the Linkages Panel Session on 8 February 2017.

The Mining Indaba Special Information Session on 8 February 2016 shared findings from a new economic assessment on linkages and domestic procurement in Ghana, conducted jointly by the African Minerals Development Centre (AMDC) and the German Federal Institute for Geosciences and Natural Resources (BGR). Ghana invited the study following its recognition of the need for upstream domestic supply linkages, diversification of the country’s economic structure, stronger involvement of the local business sector, and enhancement of its human resource and technological capabilities to create sustainable value from its mineral resources.

Kojo Busia, moderator of the panel session and Acting Coordinator of AMDC, explained that this work with Ghana will help in onboarding the Africa Mining Vision (AMV) through a country-specific mining vision, saying “The Country Mining Vision is where the ‘rubber meets the road’ in implementing the AMV. Ghana is a relatively mature mining country and there is an opportunity for the country to optimize and add value. And this transformation requires examining this from a regional dimension.”

One of the possible outcomes from the Ghana study is the potential for a national suppliers’ development programme, in partnership with the mining industry, local suppliers, and government.

Using Ghana’s experience as a springboard, the AMDC-hosted session also brought together key experts to examine the African mineral sector’s potential for deepening linkages, promote investment and pursue diversification to contribute to broader economic transformation. 

The session, which is in partnership with BGR, focused on concrete opportunities in value creation within upstream linkages in the mining sector in Africa.

Johannes Danz, program officer of extractives and development at BGR, noted that the concept of producing locally needs to go beyond locally registered firms, and should involve local production and value addition. Big-ticket items should be the focus of local procurement.

Edward K. Brown, director of policy advisory service of African Center for Economic Transformation (ACET) shared the Center’s assessment of local content value addition in 8 African countries. Findings indicate that as many countries have very small markets, establishing domestic manufacturers may suffer from limited demand. Thus we need to look regionally throughout ECOWAS.

As well as Johannes Danz of BGR and Edward Brown of ACET, speakers included: Tony Aubynn, Chief Executive Officer, Minerals Commission, Ghana; Abraham Workwui, Newmont, Ghana; David Noko, Vice President, Sustainable Development, AngloGold Ashanti; and Suleman Koney, CEO of Ghana Chamber of Mines.

 

Note for editors:

  1. Africa Mining Vision (AMV): Formally adopted by African heads of state in 2009, the AMV puts Africa’s long term and broad development objectives at the heart of all policy-making concerned with mineral extraction. It is the continent’s own response to tackling the paradox of great mineral wealth existing side by side with pervasive poverty. 
  2. The African Minerals Development Centre (AMDC) works with Member States of the African Union (AU) to fast-track alignment of their mineral sector development to the Africa Mining Vision, to achieve better developmental outcomes. AMDC currently work with more than half of all AU Member States.

 

For more information, please contact:

Ms. Daisy Leoncio,
Communications Officer
African Mineral Development Centre
dleoncio@uneca.org 
or visit www.africaminingvision.org

 

Issued by:
Communications Section
Economic Commission for Africa
PO Box 3001
Addis Ababa
Ethiopia
Tel: +251 11 551 5826
E-mail: ecainfo@uneca.org