Mining sector responsible for over 9,000 jobs in 2015 – Study

Some 9,939 people have gained direct employment in Ghana’s mining industry last year alone, according to a new study.

The study by Steward Redqueen and the Africa Centre for Economic Transformation (ACET) shows that expatriate jobs in the sector accounted for 2%, or 177 jobs, of the total employment figures in the sector, in line with local content law.

The Steward Redqueen and ACET research report also suggests that for each $1 million of local procurement, about 105 jobs are supported in the local economy. It also suggests that a 25% increase in local procurement would culminate in the creation of 9,000 jobs and value addition of $50 million.

Some 28% of the over $3.3 billion mining revenue in 2015 was spent on purchases from local companies, the report revealed.

Also, the study found that the number of indirect and induced jobs created by mining is about fifteen times the number of direct employees.

The study further finds that the normal extended family support provided in Ghana by employees suggests that there are also 8 to10 family members supported by each direct employee.

Commenting the findings, the Ghana Chamber of Mines said the development in Ghana’s mining sector can be attributed to successful implementation of National Supplier Development Programme.

The Programme is meant to support local companies deliver selected inputs for the mining industry and serve as a catalyst for the local production of mining sector inputs that could be produced competitively in-country.

“Instead of using foreign exchange to import, now we will be in a position to produce locally and conserve the scarce foreign exchange which goes to strengthen the local currency. It was such an important exercise to do”, Chief Executive of the Chamber, Sulemana Konney, told Luv News at a stakeholder meeting in Kumasi.

In the fourth quarter of last year, eleven more items were added to the list by Minerals Commission expanding the procurement list to 19 items, a move Mr. Konney believes will enhance local manufacturing.

He said Ghana’s local content law provides a window for integrating the minerals sector into the larger economy through value added inputs and services from indigenous sources.

Beyond the headline contributions of mining, he notes, the significance of the sector can be magnified if there are well-defined linkages with the non-mineral economy.

He said Asanko Gold Mines, Ghana’s 13th mining company which is located in Manso-Nkran in the Amansie West District of the Ashanti region is a good example of how local businessmen and entrepreneurs are taking advantage the sector.

Source: ghanaweb.com

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