Business News of Thursday, 31 May 2018
The Centre for Social Impact Studies has said the call on mining companies operating in Ghana to begin producing locally many of the inputs they import is not new.
According to the Executive Director, Richard Kojo Ellimah, the president was only re-enforcing what some advocates have called for over the years.
President Akufo-Addo yesterday [Wednesday] called on mining companies to consider producing locally inputs they input because a large amount of spending by mining companies leaks from the domestic economy through the importation of several tools and equipment, which Ghana has the capacity to produce.
President Akufo-Addo made this known when he delivered the keynote address at the 2018 West Africa Mining and Power Conference and Exhibition at the Accra International Conference, on Wednesday, 30th May, 2018.
With the mining extractive sector no longer a large employer of labour due to the improvement in the deployment of technology and innovation, President AKufo-Addo stressed that job creation must be stimulated in an integrated manner through the value chain of the extractives sector.
The extractives sector, particularly mining, he stressed, can help rapidly to grow Ghana’s manufacturing sector.
Speaking to Kwame Tutu on Rainbow Radio 87.5Fm, the Executive Director said “the president was re-echoing what we have been saying for many years. I don’t think we have Ghanaians who are satisfied with the way our mining communities are.’’
He blamed the situation on our inability to put in place measures or policies to benefit Ghanaians.
He made reference to Johannesburg nothing that, due to their policies, the investments in the mining sector remained in the city and that is what they used in developing Johannesburg but because the investments in Ghana are transferred outside the country, “we have not seen any significant benefits.’’
He also made reference to the link between mining industry and the economy where in Johannesburg, they have linked it their economy and so they produce locally for the mining sector.
Mr. Ellimah challenged government to review the percentage from benefits from our mining sector so the various mining communities will receive more than 30 per cent of revenue so they can develop their areas. He also called for the renegotiating the terms of Stability and Development Agreements signed between government and the mining companies to ensure that the state is not short-changed in any negotiation.
”We need a courageous government like the late Nkrumah to put in place measures to ensure that the revenue generated from mining remains in our country. We need a total overhaul of the mining law. Who was the government lamenting to. I would have wished the lamentations were directed at the failure of the governance system in providing better policies that will make Ghana benefit form our mining industry.”
The policies of government he said were in sharp contrast to the policies.