Newmont Ghana creates platform for local businesses in mining areas

Newmont Ghana Gold has held its Business to Business (B2B) encounter with its partners - the International Finance Corporation (IFC), Technoserve International (Ghana), and the Ahafo Local Businesses Association (ALBA).

The Business-to-Business which ensures the integration of local businesses into the supply chain of corporate business, especially those in the mining industry, is a key component for a sustainable mining operation and local development.

The Business-to-Business encounter, organised annually as part of the mining company’s larger effort of linking up local business with foreign and national businesses, also aims at improving the capacity of businesses operating within the Ahafo Mine area.

To maximise local content in its operations at the Ahafo Mine, Newmont Ghana in cooperation with the International Finance Corporation (IFC) set up a comprehensive intervention, the Ahafo Linkages Programmme (ALP), in 2007.

The overall goal of the Programme is to create income and employment opportunities for local communities around the Ahafo Gold Project, particularly micro, small and medium enterprises (MSMEs) and to help them become sustainable businesses.

George Brakoh, Newmont Ghana’s Manager, Local Supplier and Contractor Development, explained that the B2B encounter is a component of the ALP designed to help local businesses in the Ahafo area become better at doing business in line with international best practices.

“When we tracked contracts local businesses won and executed from contacts they made at the business-to-business encounter last year alone, they were valued at US$700,000” Mr. Brakoh said.

“We have seen the genuine desire of business people in our host communities to do business with Newmont, and even extend their business reach beyond the mining area. So through the ALP we have given them the needed training through Technoserve so that they can increase revenue while creating employment - and the results are encouraging,” he added.

Kwaku Appiah Dua, Chief Executive Officer of Multi-Wheels Ghana Limited, one of the local businesses, said through the first session organised last year, his company which purchases and rents heavy mining and earthmoving equipment has obtained contracts with large businesses who now appreciate his capacity to deliver on business promises.

“We tried to call certain big Accra-based companies to do business with us, but they declined. But when they came to B2B, they saw what we can do,” he said.

“I met many companies last year, including South Africa’s multinational, WBHO, and I have conducted business worth about GH¢50,000 with them till date.”

George Owusu of the IFC and Onsite Coordinator on the ALP, said there was an initial expectation of immediate returns on the part of some local entrepreneurs participating in the annual event, but this is no longer the case.

“Over time, many of them are beginning to see that even though contracts are a very important aspect of the business to business encounter, other benefits such as long-term commercial partnerships and networking are more important,” he said.

Mr. Isaac Nuako, Branch Manager, EB-ACCION, a savings and loans outfit which provides microfinance for businesses within the Ahafo area, commended the programme but said organisers should encourage more local businesses to participate next time.