DEVELOPMENT AND IMPEMENTATION OF POLICY FOR LOCAL CONTENT IN GHANA



Similar documents
Making the Most of Africa s Commodities: Industrializing for Growth, Jobs and Economic Transformation

Namibia. Koep & Partners. Introduction

REGULATORY BOTTLENECKS/BARRIERS TO TRADE IN INSURANCE SERVICES THE ZAMBIAN EXPERIENCE

Minerals and Mining Act, 2006 Act 703. Ownership of minerals and cadastral system

Financial Services Purchasing Forum Best practice SRM the supplier s view

ACT. No Sierra Leone. The Investment Promotion Act, Supplement to the Sierra Leone Gazette Vol. CXXXV, No. 49 dated 26th August, 2004

Government Gazette Staatskoerant

Ghana Fiscal Guide 2013/14 kpmg.com

AMA1 and National Content September 2014

CONTENTS. Introducing the Charter page 2. Charter in Action page 3. Key Partners page 3. Challenge to Employers page 4. Voluntary Commitments page 4

BACKGROUND TO, INTENTION & APPLICATION OF THE CODES OF GOOD PRACTICE

Alumni Forum Sydney, Australia 22 May EVENT SUMMARY

Implementing due diligence in gold supply chains Potential role for the World Bank s Public-Private Initiative on Artisanal and Small-Scale Mining

ADDRESSING INFORMATION GAPS ON PRICES OF MINERAL PRODUCTS

THE REGULATORY FRAMEWORK FOR SOLID MINERALS DEVELOPMENT IN NIGERIA

CUBAN FOREIGN INVESTMENT LEGISLATION

the sale of mercury to natives. According to Ofosu-Mensah the law was passed by the colonial

Consultation Statement

Project Agreements. Information for employers requesting a project labour agreement May 2015

RECOMMENDATIONS ON BUSINESS PLAN PREPARATION

Open Innovation: Issues and Challenges for Québec

PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT NO. 5 OF 2000

A Labour Agreement allows an employer to recruit skilled overseas workers for occupations approved under the agreement.

GHANA. 01

Policies & procedures for the admission of students to post-graduate degrees

The Finance & Administration Manager will be responsible for the accounts, procurement and human resources functions in Ghana.

A foreign investor seeking to start up a business in St. Lucia must:

APPLICATION FOR TEMPORARY RESIDENCE PERMIT

Introduction. Purpose

IT S ONLY A DREAM UNTIL YOU DO SOMETHING ABOUT IT

Copyright, Language, and Version Notice The official language of this [Certification Protocol] is English. The current version of the [Certification

Globe 24-7 Onsite Recruitment Process Outsourcing

AGREEMENT AS AMENDED ON 06 DECEMBER 2002

Commissioner for Victoria to the Americas. USA xtn103 or

14 December 2006 GUIDELINES ON OUTSOURCING

LEVEL & SALARY Level 9 up to (Inclusive of 2% pay award effective 1 st April 2014)

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION INVESTMENT AND TECHNOLOGY PROMOTION BRANCH INDUSTRIAL INVESTMENT AND TECHNOLOGY PROJECT PROFILE

General Corporate Social Responsibility Policy 20/10/15

API FORUM (21 st March 2013) MIDA

BY: ISAAC YAW BUABENG HEAD OF MARKETING, RESEARCH AND EXTERNAL RELATIONS (NIC)

OCCUPATION SPECIFIC DISPENSATION NURSING ASSISTANT

Republic of Zambia Ministry of Education, Science, Vocational Training and Early Education. Youth Innovation Fund Guidelines

MALANDELA SECURITY SERVICES COMPANY PROFILE 1

Endeavour Management Presentation

Recognition of prior learning

ECOWAS Trade Liberalisation Scheme (ETLS)

ENHANCEMENT CONTRACTS - AVAILABILITY OF INSURANCE TO NETWORK RAIL

THE TEACHING COUNCIL [REGISTRATION] REGULATIONS IN ACCORDANCE WITH SECTION 31 OF PART 3 OF THE TEACHING COUNCIL ACTS, 2001 TO 2006 ( THE ACT )

Nursing and Midwifery Workload and Workforce Planning Project: A Good Practice Guide in the Use of Supplementary Staffing

DOCTOR OF PHILOSOPHY DEGREE. (PhD) PROSPECTUS

So you're thinking of becoming an RTO?

BUSINESS TRIP TO ANGOLA LUANDA

Standardised Job Descriptions for Infrastructure Development and Technical Services Units of Provincial Health Departments as funded through the

Guide on Hourly Fee Rates for Consultants

IFRS APPLICATION AROUND THE WORLD JURISDICTIONAL PROFILE: United States of America

GUIDELINES FOR INVESTMENT ADVISERS AND INVESTMENT REPRESENTATIVES UNDER THE SECURITIES INDUSTRY ACT 1983

GUIDANCE NOTE ON OUTSOURCING

The University of Queensland. Classification Guidelines for. Research-Related General Staff Positions. (HEW Levels 1-9).

IMMIGRATION INDUSTRY PARTNERSHIPS WITH EDUCATION PROVIDERS Purpose

ALL EMPLOYERS & ALL EMPLOYEES

Procurement Policy Note Supporting Apprenticeships and Skills Through Public Procurement

INSIDER TRADING AND BLACKOUT POLICY

APEC Young Leaders Forum Report Beijing & Shanghai, China 9-14 July 2001

EAST CAPE MASTER BUILDERS AND ALLIED INDUSTRIES ASSOCIATION P O Box 7086, Newton Park, Port Elizabeth 6055, South Africa

MINISTRY OF TRADE AND INDUSTRY STATEMENT BY HON. CALLE SCHLETTWEIN, MINISTER OF TRADE AND INDUSTRY,

Construction Services

MADISON GENERAL INSURANCE COMPANY (Z) LIMITED (MGen) EXPORTING INSURANCE SERVICES TO TANZANIA: EXPERIENCE AND CHALLENGES

East African Underwriters Ltd

Chiropractic Boards response 15 December 2008

OLD MUTUAL S RESPONSIBLE INVESTMENT POLICY

Qualified Persons in the Pharmaceutical Industry Code of Practice 2009, updated August 2015

Regional Agenda. World Economic Forum on Africa Meeting Overview

Policy on Business Continuity

n. dowuona & company setting up business in Ghana

JOB DESCRIPTION. 1. JOB TITLE: Administrative Assistant (Student Liaison) 4. DEPARTMENT: University Centre Shrewsbury

Policy Statement: Licensing Policy in respect of those activities that require a permit under the Insurance Business (Jersey) Law 1996

Developing a Multi-Billion Dollar Iron Ore Company in Africa

Draft Scope 2 Accounting Guidance: What it could mean for corporate decisions to purchase environmental instruments

CHAPTER 11 TRADE IN SERVICES. Article Definitions

A POLICY OF MARGIN OF PREFERENCE. For Liberian and Domestic Business

Contents. Introduction. Structure of the syllabus. Business syllabus. People in business. Enterprise. Unit 7. Managing 1. Unit 3. Managing 2.

MINISTRY FOR EDUCATION AND EMPLOYMENT

T Tunisia Work at Home Jobs - Senior Management & operational Effectiveness

September Claims Guideline

Regulatory Reform of the International Education Sector and the Student Immigration Regime. Policy Statement

People Strategy 2013/17

What it examines. Business Working Responsibly CR/Sustainability Governance Section

中 國 通 信 服 務 股 份 有 限 公 司

JOB DESCRIPTION. 1. JOB TITLE: Senior Lecturer in Marketing and Public Relations. 4. DEPARTMENT: Warrington School of Management.

REGIONAL MIGRATION POLICY The current and future policy framework of ECOWAS. Tony Luka Elumelu Directorate of Free Movement & Tourism

TAXATION AND AID FOR DOMESTIC RESOURCE MOBILIZATION (D.R.M.) AID: HELPING OR HARMING DOMESTIC RESOURCE MOBILIZATION IN AFRICA

CLASS LICENSING PROCESSES AND PROCEDURES REGULATIONS (AS AMENDED) 2010

Entertainment Industry Accreditation Application

TORONTO STOCK EXCHANGE COMPANY MANUAL APPENDIX B DISCLOSURE STANDARDS FOR COMPANIES ENGAGED IN MINERAL EXPLORATION, DEVELOPMENT & PRODUCTION

Request for Information National Network for Manufacturing Innovation (NNMI)

Association of Business Executives (ABE) U.K.

MASSEY UNIVERSITY COLLEGE RESEARCH CENTRE AGREEMENT

Employer Accreditation Application

The post is based at Headquarters. Flexible working hours are required to meet the needs of the business.

Tanzania. Rex Attorneys. Introduction

Transcription:

MINING & SUSTAINABLE DEVELOPMENT FORUM (25-26 th September, 2013, Accra, Ghana) DEVELOPMENT AND IMPEMENTATION OF POLICY FOR LOCAL CONTENT IN GHANA Presented by: Richard Kofi Afenu Manager, Sectoral Policy & Planning Minerals Commission, Accra, Ghana. kofiafenu@gmail.com

PRESENTATION OUTLINE Development of the Policies Definitions The legal Framework Implementation Framework Mining Companies Exploration Mine Support Service Companies Concerns and Challenges CONCLUSIONS and WAY FORWARD

Definitions of Local Content World Bank definition for domestic preference qualification is based on the percentage of local ownership of the firm. The African Development Bank (AfDB) defines local firms based on place of registration, a majority of board members being nationals, and level of shares held by nationals. The Trinidad & Tobago Local Content and Local Participation Policy aims to maximize the level of participation of its people, enterprises, technology, and capital through the development and increasing use of locally owned businesses, local financing, and human capabilities in the energy sector; defines local content and participation in terms of ownership, control and financing by the citizens of Trinidad and Tobago. 1 It aims to support: Local participation: maximizing the depth and breadth of local ownership, control, and financing, in order to increase local value capture from all parts of the value chain created from the resource, including those activities in which Trinidad and Tobago people, businesses, and capital are not currently engaged, both within and outside of Trinidad and Tobago Local content: maximizing the level of usage of local goods and services, people, businesses, and financing

Definitions of Local Content (adapted from world bank) in terms of value addition

Definitions of Local Content (adapted from world bank) in terms of local participation

Definitions of Local Content (adapted from world bank) in terms of Spend Recognition Levels

Development of the Policies Draft Minerals & Mining Policy, African Mining Vision and ECOWAS Mineral Development Policy Inadequate local value addition to minerals produced; Lack of local capital in the mining sector; Developing, attracting and retaining local human resource in the sector; Integrating the sector with the rest of the economy (ensuring backward, forward and side-stream linkages) Developing local industrial capacity for the mineral industry; Contributing to the economic empowerment of Ghanaians by generating opportunities for local entrepreneurship, increasing demand for local goods and services and continuously creating employment opportunities for Ghanaians Artisanal and Small Scale Mining; Promoting the transformation of mining capital into other forms of development capital; Contributing to the economic empowerment of Ghanaians by generating opportunities for local entrepreneurship, increasing demand for local goods and services and continuously creating employment opportunities for Ghanaians;

The legal Framework Minerals and Mining Act, 2006 (Act 703) Section 11 (Application for mineral rights) An application for a mineral right shall be accompanied with..., proposals with respect to the employment and training in the mining industry of Ghanaians. Section 50 (Recruitment and training of Ghanaians) (1)...localization policy,... programme for the recruitment and training of Ghanaian personnel as prescribed.

The legal Framework Section 105 (Preference for local products and employment of Ghanaians) (1) The holder of a mineral right shall in the conduct of mineral operations, and in the purchase, construction and installation of facilities, give preference to- materials and products made in Ghana, service agencies located in the country and owned by (i) citizens, (ii) companies and partnerships registered in Ghana (iii) public corporations (2) give preference in employment to citizens to the maximum extent possible and consistent with safety, efficiency and economy.

Implementation Framework EXPATRIATE QUOTA

Implementation Framework Proposed Framework based on Categorization of Staff into: Unskilled Labour Skilled Labour (trades men/artisans, after specified apprenticeship) Clerical Staff Mining Companies Exploration Mine Support Service Companies Technical & Supervisory Staff (after tertiary education) Management Staff

Implementation Framework Mining Companies Ghanaian Proportions: Mining Category Commence ment After 2 Years After 4 Years After 6 years Unskilled 100% 100% 100% 100% Labour Skilled Labour 90% 100% 100% 100% Clerical 100% 100% 100% 100% Technical, Supervisory, & Management * 85% 90% 95% 95% Minimum of 3 Expartriates Allowable * After 2 years, special cases where skilled labour is critical; this could be provided for within this limit

Ghanaian Proportions: EXPLORATION Category Commence ment After 2 Years After 4 Years After 6 years Unskilled 100% 100% 100% 100% Labour Skilled 90% 100% 100% 100% Labour Clerical 100% 100% 100% 100% Technical & 95% 95% 100% 100% Supervisory Management * Up to 2 Up to 2 Up to 2 Up to 2 No. of Expats After 4 years, special cases where skilled labour is critical; this could be provided for within this limit Implementation Framework Exploration Companies

Implementation Framework General Transitional Arrangements: Existing mining operations have up to 2 years to restructure General Special Cases: Extra Expats. will be considered under justifiable instances, e.g.: Specialized Technology Significant comparable Ghanaian Expats Where training (being done but) would require longer than transition period 5 Concessions for Exploration Co s 2 Mining Operations (2 for Head Office) Regional Offices to be justified

Implementation Framework Special Cases (contd): Consideration of any such application/request would entail: Review/audit of existing Expat positions Review of proposed additions Recommendation for Minister s approval Discovery of a company s flouting of provisions, without prior approval Sanction: payment of one (1) year salary of the expatriate involved for each month, or part thereof, worked to Government.

Implementation Framework GOODS AND SERVICES

Implementation Framework Service Companies A wide variety of areas have been identified 1. Mining contractors (large scale) 2. Support to small scale miners 3. Assay laboratories 4. Exploratory drilling 5. Fabrication of equipment & manufacture of consumables 6. Supply of equipment & technical services 7. Haulage 8. Mining Consultancy 9. Mineral exploration services 10. Supply of explosives & chemicals 11. Manufacturing of explosives/chemicals 12. Engineering construction & mine infrastructure development. 13. Buying and export of gold

Implementation Framework Service Companies Guidelines have been developed to cover the various activities offered under mine support services companies: Unskilled labour, skilled labour & clerical categories reserved for Ghanaians, except for the Special Cases Considerations may be given to expatriate staff to work in companies Regional Offices Company must have other active operations including offices and staff in the sub-region to get recognition for regional office Expatriates engaged for day to day activities in another sub-regional country - Will not be recommended for permit

Implementation Framework Service Companies Companies to submit localisation & training programme within 4 months of coming into force of Regulations or Registration (whichever is earlier), for consideration Companies to submit report on training done during period of the permit and the implementation of the training plan for the Ghanaian counterparts. - Recommendation for grant and renewal of visas, work/residence permits contingent upon these

Implementation Framework Service Companies Guidelines recognise Management/Investors in the mine support service. (i) Certain number of expatriates are recommended for each Company (ii) A company which provides more than one service can benefit only once from (i) and not in multiples

Implementation Framework OWNERSHIP IN MINING RIGHTS

Implementation Framework Government has 10% free carried interest in all mining operations (section 43) Government has right to acquire up to further participation as may be agreed with the holder of the mineral right. Are these provisions adequate?? Can Local capital be employed more in mining which can lead to increased participation??

Concerns and Challenges Skilled Ghanaians accepting expatriate positions outside Ghana (Disparity in GH/Expats Conditions of Service) Lack of confidence on part of some personalities of mines in the ability of Ghanaian staff to deliver in the absence of expatriate staff. Non-availability of some products used by mines locally Inadequate support for local supplier development and quality suppliers Narrow range of products currently within manufacturing scope. Need to broaden the scope to encourage local production of high value-added products Monopoly supplier in-country supplying uncompetitive priced products

Conclusions and Way Forward Limited local production capacity of the products which is an opportunity for LOCAL COMPANIES to go into the production of these products Health, Safety and Environment concerns. Local Companies need to comply with internationally acceptable (SHE) standards Energy supply and Quality issues. Inadequate and Opportunity for Local or Other Investors Whether local companies could produce to required specifications and standards. training and technology transfer to achieve these Lack of intellectual capital and Limited R&D in the country..conscious Government policy to achieve these Need to optimize local content in the mining industry; integrating mining industry fully with the rest of the national economy.