Ghana: Upstream linkages—The importance of defining local procurement

Ghana employs a combination of demand-side policies, such as targeted local procurement lists and mandatory five-year procurement plans, and supply-side initiatives like the National Supplier Development Program to increase linkages between the mining sector and local businesses. While the Minerals and Mining (General) Regulations LI 2173 provide a structured framework with financial penalties for non-compliance, the document highlights a critical lack of a precise definition for 'origin' and 'local value added' for goods. This ambiguity allows foreign firms to qualify as local simply by registering under Ghanaian law, potentially undermining industrialization goals. The government has demonstrated flexibility by iteratively expanding its local procurement list, which grew from eight products in 2014 to a projected 29 by late 2017.

• Ghana utilizes demand-side policies including preferential procurement for local goods and services when bids are within 2 per cent on price, and a requirement for companies to submit a five-year procurement plan.
• The Minerals Commission maintains a targeted list of goods that must be sourced locally; failure to do so results in penalties and the payment of full customs duties. This list expanded from eight products in 2014 to 15 in 2015, accounting for 5460 per cent of all items purchased by mining companies.
• There is a significant regulatory gap regarding the definition of 'local' products, as the regulations do not specify the required level of local value added or provide a definition for 'origin'.
• The current definition of service providers allows foreign firms to be classified as Ghanaian simply by registering under Ghanaian law, which may hinder the government's broader industrialization objectives.
• Strict financial penalties are enforced for failing to deliver a local procurement plan, starting at USD 10,000 per month and increasing to USD 10,000 per day after six months.
• Supply-side efforts include the November 2017 announcement of a National Supplier Development Program and the launch of a local procurement portal by the Ghanaian Chamber of Mines to connect local businesses with industry opportunities.

APA

Nickerson, E., & Geipel, J. (2018). Ghana: Upstream linkages—The importance of defining local procurement. International Institute for Sustainable Development. https://www.iisd.org/sites/default/files/publications/case-study-ghana-upstream-linkages.pdf

Chicago

Nickerson, Emily, and Jeff Geipel. Ghana: Upstream linkages—The importance of defining local procurement. International Institute for Sustainable Development, 2018. https://www.iisd.org/sites/default/files/publications/case-study-ghana-upstream-linkages.pdf.

Wikipedia

{{cite report |last1=Nickerson |first1=Emily |last2=Geipel |first2=Jeff |title=Ghana: Upstream linkages—The importance of defining local procurement |publisher=International Institute for Sustainable Development |date=2018 |url=https://www.iisd.org/sites/default/files/publications/case-study-ghana-upstream-linkages.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{nickerson2018ghana, author = {Nickerson, Emily and Geipel, Jeff}, title = {{Ghana: Upstream linkages—The importance of defining local procurement}}, institution = {International Institute for Sustainable Development}, year = {2018}, url = {https://www.iisd.org/sites/default/files/publications/case-study-ghana-upstream-linkages.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }