Electrochem Ghana expands outgrower scheme to promote co-existence with Ada communities

Electrochem Ghana Limited has reaffirmed its commitment to peaceful coexistence with local communities through its out-grower scheme, which aims to integrate indigenous people into its salt mining operations.

This initiative follows a parliamentary inquiry triggered by tensions between the company and residents regarding operations on what locals claim is ancestral land.

The inquiry, initiated after confrontations between ElectroChem officials and the local community, recommended that Indigenous people should have a greater role in the company’s activities.

In response, Electrochem has expanded its out-grower scheme to cede approximately 2,000 acres of its concession to local salt producers.

After a media tour of the operational sites for the local community, ElectroChem’s CEO, Mr. Abdul Razak Adam, explained the company’s efforts to promote cooperation and ease tensions.

“The out-grower scheme is the basis for coexistence and for empowering the Indigenous community and individual businessmen engaged in salt mining,” Mr Adam stated.

He noted that the company’s first initiative was the community pan system, covering 1,000 acres. “Electrochem built the community pans at our expense and provides free brine to community members to support salt production, allowing us to coexist,” Mr Adam said.

However, he emphasised that the community pan concept is organised, involving groups like youth and women’s associations throughout the concession area.

Recognizing that the community pan system alone might not suffice, ElectroChem sought to create additional opportunities for individual businessmen who want to operate independently.

“This decision was fast-tracked by the recent parliamentary recommendation to cede part of the concession to community members,” Mr Adam explained.

The out-grower scheme has now expanded to include another 1,000 acres for individuals and registered businesses and several beneficiaries have already been registered.

These include Yikatseme, Ada Community Chiefs Association, Ada Youth Forum for Development, Songornya Salt Producers Association, and Kakepemi Salt Producers Association. 

Other beneficiaries include Takpebiawe Youth Association, August Natagus Limited, Mawungue Enterprise, Noyami Salt Mining, and Nissi-Brown Company Limited. Additional groups are the United Faith Agriculture Cooperative, David Kodjo Sapatey Association, and Songor Royal Salt.

Mr Adam also highlighted the company’s collaboration with the Minerals Commission to implement the scheme under the tributary system, which ensures proper management of land ceding. “Even with a 15-year lease on this concession, we must follow the rules and regulations set by the Minerals Commission,” Mr Adam stated.

He revealed that Electrochem is ceding about 2,000 acres from a mineable 7,000 acres for both the out-grower scheme and the community pan system.

Electrochem provides local producers with free brine, technical support, and training in sustainable mining practices. While the company offers a market for the salt produced by the outgrowers, participants are free to sell to other buyers if they wish.

Mr. Adam emphasized that this initiative promotes peaceful coexistence and benefits local communities from the salt mining activities.

“We are pleased to do this because we understand that ElectroChem can only thrive through inclusive mining,” Mr Adam said.

He noted that the company pays royalties to the Minerals Commission and various fees to the traditional council and district assembly. Over the past two years, Electrochem has paid more than 36 million Ghana cedis to the Minerals Commission.

As ElectroChem prepares to expand operations into Ada East, Mr. Adam noted that more opportunities for local involvement will be created. “This scheme is a significant step toward fostering an environment where both ElectroChem and the local communities can thrive together,” he added.