Accra, March 31, GNA -The Ghana Chamber of Mines has launched the Supply Chain Financing Programme to help provide funds for small businesses seeking to enter into the mining sector.
The programme, which provides an integrated platform for banks, mining companies and SMEs, is aimed at improving local content in the mining sector.
The move is to help build the capacity of local companies to actively engage in the extractive sector.
The Chief Executive Officer of the Ghana Chamber of Mines, Dr Sulemanu Koney, at the launch said 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.
Mr Koney announced that out of 23 banks engaged in the country a shortlist of three was made— comprising CAL Bank, Republic Bank and Absa bank.
He stated that the banks were all allowed to present workable financial plans to the chamber in collaboration with companies in the supply chain.
“A committee was set up to engage banks in the country to ascertain which financial institutions have financial products that fit the whole idea. After further engagements we settled on these three banks to present their products to the stakeholders,” he said.
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.
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.
GNA