Local procurement in the mining sector: Is Ghana swimming with the tide?

Abstract

Since 2012, Ghana has been implementing local procurement regulations in the mining sector to broaden and deepen linkages between mining and other sectors of the economy. The regulations have been implemented in collaboration with the mining industry. This paper offers an in-depth analysis of how the local procurement regulations and related initiatives have been implemented so far. Primary data gathered with semi-structured interviews and secondary sources of data indicate a steady improvement in both in-country procurement and local manufacturing of inputs for the mining industry. There are, however, some challenges relating to tariff structure and support (financial and technical) for local suppliers and manufacturers to meet high standards and demands of the mining industry. This calls for a well-thought-out strategy and programme of activities to sustain and improve on progress made.