Local Content and Local Participation in the Ghanaian Mining Industry : The Challenges, Prospects and the Wayforward

Abstract

ABSTRACT One of the main contentious issues within the mining sector is the embedment of the indigenous communities and companies within the mining activities that happen in the communities where minerals are extracted. This necessitated the emergence of a concept known as local content by policy makers. This concept tried to bridge the gap between indigenous companies and multinational companies in terms of employment and contracts. The primary aim in this study is to examine local content and participation in the mining industry of Ghana. The challenges, prospects, and the way forward were also considered. Firstly, the study looks at how effective the local content policy/legislation has fared within the Ghanaian mining sector. Secondly, the challenges of the local content policy were considered. Finally, the recommendation for policy decisions and considerations were properly assessed.

The findings revealed that one of the main challenges of the local content policy is that indigenous companies are poorly structured and have limited capacity to do business in the extractive industry of Ghana. Also, some of the local companies have limited financial capacity to deliver on large contracts, and even lack international certifications such as the International Organization for Standardization (ISO).

Additionally, the result suggests that there is a promising future for the local content policy, particularly in the small-scale mining sector. Essentially, building the capacity of the local population is a fundamental requirement to achieve the necessary level of expertise and skill. The government of Ghana, in collaboration with operating companies and other stakeholders, have obligations to make sure that there are initiatives and programs for Ghanaians in the mining sector.

Key Words: Local content, Local participation, Local content policy, Ghana, Mining.