To help build the capacity of local companies to actively engage in the extractive sector, the Ghana Chamber of Mines has launched the Supply Chain Financing Programme to help provide funds for small businesses seeking to enter into the mining sector.
The programme provides an integrated platform for banks, mining companies and SMEs, and is targetted at improving local content in the mining sector.
Speaking to the B&FT after the launch, Chief Executive Officer of the Ghana Chamber of Mines, Dr. Sulemanu Koney, disclosed that research conducted by the Chamber showed that financing for local suppliers in the mining sector is a huge challenge to Ghanaian companies.
Following a discussion with relevant stakeholders, Dr. Koney stated that the Ghana Association of Bankers was consulted to help provide funds for local suppliers at a favourable interest rate.
“Mining is a catalyst for development. However, you can’t just sit down, fold your arms and literally say mining is a catalyst for development. We are not a finance house, but we help by bringing the companies and the banks together to understand the supply chain,” he stressed.
He explained that the Chamber contacted the Association of Ghana Industries to help create a conducive environment that encourages banks to lend to small businesses in the mining sector supply chain.
Mr. Koney announced that out of 23 banks engaged in the country, a shortlist of three was made – comprising CAL Bank, Republic Bank and Absa Bank.
He stated that the banks were all given an opportunity to present workable financial plans to the Chamber in collaboration with companies in the supply chain.
“A committee was set up to engage banks in the country to ascertain which financial institutions have products that fit the whole idea. After further engagements, we settled on these three banks to present their products to stakeholders,” he said.
Making some remarks at the launch, Chief Executive of the Ghana Association of Bankers, John Awuah, reiterated that banks are now well-capitalised to venture into investment in the mining sector.
He applauded the three banks for designing products that will help finance activities of local companies in the mining sector.
According to him, the financial sector clean-up exercise undertaken by the Bank of Ghana has equipped many Ghanaian-owned banks to lend funds into areas that will help develop the country’s infrastructural needs.
“Now we have Ghanaian banks investing in the construction and expansion work at the Takoradi dry-dock. That’s not all; a lot more Ghanaian banks are going into lending for infrastructural development. That is the only way we can develop the nation and create more jobs in the economy,” he said.
