Skip to main content

Ghana Chamber of Mines launches Supply Chain Financing initiative to boost supplies to mining sector

 The Ghana Chamber of Mines, in partnership with three financial institutions, has launched a programme to financially support members to enhance their services and productivity.

The launch of the ‘Chamber of Mines’ Supply Chain Financing Programme,’ in Accra on Wednesday March 30, 2022, makes way for members to access financial products tailor-made for mining support services companies in the Ghanaian mining industry.

Chief Executive Officer of the Ghana Chamber of Mines, Dr. Sulemanu Koney, said the programme was developed in response to the financial challenges its members especially, the mining support services companies, faced.

Having identified that problem, we put together a team to find a way of designing products which are tailor-made to serve the needs of the mining companies as well as the mining support services companies that is what we have launched today” he added.

Ghana Chamber of Mines, Supply Chain Financing, mining sector

Dr. Koney indicated that the idea is to make sure that members of the chamber have the best capacity in terms of technology and financing.

We are not looking for financial products which are picked from the shelves, we want cutting edge and customised products for them so they can get the best capacity to also produce for the mining companies within the country and once they get to a certain level they can even export beyond the shores of this country,” he added.

Dr. Koney explained that research conducted by the chamber showed that access to finance was a huge challenge for local suppliers in the mining sector. Following engagement with relevant stakeholders, Dr. Koney said the Ghana Association of Bankers was asked to help provide funding for local suppliers at a favourable interest rate.

Mining is a catalyst for development. However, you can’t just sit down and fold your arms and 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 said also the Chamber engaged the Association of Ghana Industries to help create a conducive environment that will encourage banks to lend to small businesses in the mining sector supply chain.

Out of 23 banks engaged in the country a shortlist of three was made and these were CAL Bank, Republic Bank and Absa bank.

Read also: Minerals Commission sensitize media on minerals and mining operations

He stated that the banks were all allowed to present workable financial plans to the chamber in collaboration with companies in the supply chain.

Giving an overview of the programme, Chairman of the Tender Committee, Clifford Adu-Biney, said the committee started work in the fourth quarter of 2020 following which banks expressed interest and three banks, Absa Bank, Cal Bank and Republic Bank were shortlisted as the partnering financial institutions.

[caption id="attachment_11376" align="aligncenter" width="300"]Ghana Chamber of Mines, Supply Chain Financing, mining sector Clifford Adu-Biney, Chairman- Tender Committee,[/caption]

He said the programme aims to offer between short to long term uniquely designed solutions in areas such as purchase order financing, trade receivables financing, leasing of fixed assets, cash flow lending solutions, suppliers credit facilitation and guarantees among others.

He noted that the launch would be followed by the set up of a technical committee of experts to receive and review project financing proposals from businesses and affiliates desirous of exploiting production and manufacturing opportunities.

We will also provide technical advice and guidance to translate such proposals into feasible and bankable projects for consideration by partners Banks and other financial and capital markets participants,” he added.

The Chief Executive of the Ghana Association of Bankers, John Awuah, in his remarks at the launch reiterated that banks are now well capitalised to venture into investment in the mining sector.

Ghana Chamber of Mines, Supply Chain Financing, 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 to areas that will help develop the infrastructural needs of the country.

Now we have Ghanaian banks investing in the construction and expansion works at the Takoradi Drydock. 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.

Comments

Popular posts from this blog

Nestlé Ghana Limited Wins Overall Best Industrial Company Of The Year at 13th AGI Industry & Quality Awards

  Nestlé Ghana Limited has been honored with four prestigious awards at the 13th Association of Ghana Industry and Quality Awards ceremony. The event, held in an esteemed setting, gathered prominent figures from Ghana’s industrial sector. Amidst the anticipation, Nestlé Ghana emerged as one of the evening’s notable winners, securing accolades in several key categories. This recognition underscores Nestlé Ghana’s relentless pursuit of excellence and innovation, marking a significant milestone that highlights the company’s substantial contributions to the manufacturing industry in Ghana. Nestlé Ghana's exceptional performance was acknowledged with the following awards: Overall Best National Quality Award, Diamond Category (Food) Overall Best Practices in Sustainable Manufacturing Best Company (Food Sector) Overall Industrial Company of the Year, affirming its status as a leader not only within the food sector but also across Ghana's entire industrial landscape. This success is a ...

Anglogold Ashanti Obuasi Mine tops 2024 Sustainability & Social Investment Awards

 AngloGold Ashanti Obuasi Mine has confirmed its status as sustainability champions by sweeping nine awards, the most won by a company at the 2024 Sustainability & Social Investment Awards (SSI) held at Movenpick Ambassador Hotel in Accra. The feat comes on the heels of a dominant performance in last year's event where AngloGold Ashanti Obuasi Mine swept seven awards. The SSI Awards organised by Ianmatsun Global Services recognizes the most outstanding sustainability, Corporate Social Responsibility (CSR), Environmental, social, and governance (ESG) initiatives in the country and beyond as well as the best teams and individuals who brought them to life. This year's event, which was the 8th edition, was under the theme "Climate Action Now: Accelerating Decarbonization and Building Resilience". The awards won by AngloGold Ashanti on the night include SSI Company of the Year, Best Company in Women Empowerment (project), SSI Company of the Year ( Environment), Best Co...

Zoomlion Advocates Community & Gender inclusive waste management for Climate Action at COP 29

 Africa's waste management giant, Zoomlion Ghana Limited has advocated for an integrated approach to waste management that considers the interest of community members, women and vulnerable groups. James Deku, a Communications Officer of Zoomlion Ghana Limited made this call at the 29th session of the Conference Of Parties (COP 29) of the United Nations Framework Convention for Climate Change (UNFCCC) at Azerbaijan, Baku whiles speaking on the topic "Community-Driven and Gender Inclusive approaches to waste management for Climate Action ". He said the waste sector is a major contributor of methane emissions which is a potent greenhouse gas causing climate change hence the need to manage waste in a manner that considers the interest of all stakeholders. Zoomlion's waste management model is designed and operated in a manner that considers the interest of all stakeholders. Through a Public Private Partnership (PPP) model, local authorities engage community members in clea...