Accra: The Association of Local Mining Contractors Ghana has emphasized that local content is the most effective tool for transforming mineral wealth into sustainable economic prosperity.
According to Ghana News Agency, the association stated that local content should be viewed as a national strategy beyond just procurement or awarding contracts to Ghanaian companies, focusing instead on improving stability within the country.
Mr. Samuel Aboagye, Secretary of the Association, highlighted these points during a presentation at the inaugural Mineral's Commission Local Content Summit 2026, which is themed 'Strengthening Local Content and Indigenisation: Building a Resilient Mining Sector in Ghana.' He warned that weak local content leads to a disconnection between the mining economy and local communities, resulting in increased unemployment, poverty, and illegal mining activities.
Despite the mining sector's significant contribution to Ghana's Gross Domestic Product, Mr. Aboagye noted that operational communities remain impoverished and underdeveloped, with limited opportunities for local businesses. This situation fuels illegal mining activities. He stressed that while enforcement is necessary, deliberate economic empowerment through local content is the most practical solution to reducing illegal mining, known locally as galamsey.
Mr. Aboagye acknowledged Ghana's efforts in establishing a robust legal framework to support local content in the mining sector, citing key legislation such as L.I 2431 of 2020, L.I 2173 of 2012, and L.I 2174 of 2012. However, he called for stringent monitoring, auditing, and compliance systems to ensure these laws are effective beyond being mere policy on paper.
The Association further stated that L.I 2174 should not be treated merely as a permit and fee collection tool but should serve as a structured pathway for contractor growth, helping small and medium enterprises (SMEs) to build capacity progressively. It also identified fronting, misrepresentation, technical capacity gaps, and financial constraints as major threats to local content.
Additionally, the Association pointed out that contract rates in the mining sector need to be adjusted to reflect higher rates within mining sites compared to standard engineering rates, as this discrepancy affects performance, compliance, and sustainability. Intentional opportunities for SMEs to create jobs and build community trust were also recommended.
Mr. Aboagye suggested adopting a 'Local-Local' Procurement model, urging the government to ensure enforcement of specific categories of work for qualified community-based contractors and suppliers within mining operational areas. He emphasized that this approach should not be treated as a Corporate Social Responsibility initiative but as a strategic tool for local development aligned with national objectives.