Electrochem Ghana Limited (EGL), a subsidiary of the McDan Group of Companies specializing in salt production, has launched a Community Outgrower Scheme designed to empower artisanal salt miners within its Songor Lagoon Salt Mine concession.
The initiative, which is part of the company’s ongoing community engagement efforts, involves ceding approximately 2,000 hectares of its concession to local salt miners to promote entrepreneurship and environmental stewardship.
The scheme was officially unveiled by Electrochem CEO, Mr. Abdul Razak Adam, during a ceremony held at the company’s premises on Monday, August 26. Mr. Adam highlighted the company’s dedication to socioeconomic development through direct community involvement.
“At Electrochem, we recognize that our success is deeply intertwined with the well-being of the communities we operate in. We are not just a company that extracts salt; we are part of a larger ecosystem that includes you—our neighbors, our partners, and our future,” Mr. Adam stated.
The Community Outgrower Scheme enables local residents to pool resources, register as businesses, and directly participate in salt mining in designated pans created by EGL. The initiative is expected to create jobs, stimulate local economies, and provide long-term opportunities for community members.
“Three things that when I took this job, and also the board of directors of the company and the founders stood firm on, was to tackle three major issues. One is poverty alleviation, what you call livelihood. Some people call it livelihood. Our intent is to make sure that we completely or at least alleviate poverty in this society. The next thing is women empowerment. That has also been our core responsibility, which we have taken seriously. And then the third one is environmental protection. So if you look at these three things, most companies would take it as a corporate social responsibility and not pay too much attention to it.
“To us, it’s the core of why we exist. We believe that a business can thrive and at the same time be able to tackle these three main issues that I talk about. Poverty, women empowerment, as well as environmental sustainability.
“Why do I bring this? If you look at our entire operation, that is what we tackle. If you raise your head and look at the lagoon, you will see a restored lagoon right there. If you come in three years before Electrochem was here, it was like a football field.
“There was nothing going on there. So if you look at the environmental side, that is what we have been able to do and will continue to do that. And then I’ll talk about women empowerment.
“You realize that we’ve put the women at the core of our operation by ensuring that we provide a means of livelihood for them, even outside of SALT. This is where we come in with an interest-free loan scheme to support these women. It started with one million, then it went up to three million.
“Currently we are looking at putting it at 10 million to make sure that we can provide free interest-free loans to our women to work, even if they don’t want to do SALT. That is what I call women empowerment. In addition, 80% of our SALT miners in the plant, when we start mining, is women. It’s our mothers, our sisters. So to us, we feel this is very core to what we do. And I want to also talk about poverty reduction,” Razak Adam briefed members of the parliamentary press
This development follows a Parliamentary intervention aimed at resolving conflicts between the company and local residents, who had expressed concerns that their livelihoods were being adversely affected by the approval of Electrochem’s salt mining lease.
“This scheme is not just about mining salt; it’s about mining potential, inspiring innovation, and building a legacy of prosperity for generations to come,” Mr. Adam added.
He also reaffirmed the company’s commitment to eco-friendly mining practices, ensuring that the initiative integrates sustainable approaches to protect the local environment. Community members who wish to join the scheme are required to form groups of at least 50 members, register as a business, pick up application forms from Electrochem’s Sustainability Department, and complete training in responsible and sustainable mining practices. Upon approval, participants will be allocated land within the concession to carry out salt mining activities.
The company also encouraged notable organizations and community groups, such as DESPA, ASLA, and The Youth Forum, to apply and take full advantage of the opportunity.
During his address, the Paramount Chief of the Ada Traditional Area, Dzetse Nene Kabu Abram Akuaku III, emphasized the importance of delivering on the promises made by Electrochem regarding the utilization of the Songor Lagoon for salt production. He noted that EGL was introduced to the Ada community with commitments to local participation in salt production, payment of royalties, and a substantial increase in production capacity to boost local development and economic growth.
These commitments include creating 4,500 jobs, establishing a GH¢3 million fund (with plans to increase it to GH¢10 million over five years) to provide interest-free loans to women, improving water supply, and supporting health facilities and schools within the traditional area. However, Dzetse Nene Akuaku III expressed concerns about the pace of implementation, stating that while progress has been made, such as infrastructure development and financial support, more needs to be done. He stressed the need for continuous dialogue and adherence to commitments to ensure that the benefits of Electrochem’s operations are fully realized by the local community.
Nene Dame Sowu III, Secretary to the Ada Community Chiefs Association and Chief of Tobloku, expressed the chiefs’ full support for Electrochem’s Community Outgrower Scheme. He emphasized that the chiefs’ primary role is to maintain peace and collaboration, noting that the model brings renewed hope and opportunity to the people of Ada.
“We are happy that the world will now know that our people are being allowed to be part of this business,” Nene Sowu stated.
Alfred Nokobi Wuago, Chairman of the Kakipe Salt Producers Association, also expressed strong support for the training initiative offered by EGL as part of the outgrower model. He stressed the importance of training in ensuring high-quality salt production.
“We are ready to undergo the necessary training to meet the standards required to produce quality salt for Ghana and the world at large,” Wuago noted.
Amos Martey Osabutey, Chairman of the Ada Youth for Development, echoed the optimism regarding job opportunities being created for local youth. While acknowledging initial concerns and agitations, Osabutey pointed out that tensions have eased as land has been allocated to the youth, providing them with a direct stake in the business. Although some opposition groups remain dissatisfied with Electrochem’s actions, Osabutey assured that the majority of the youth are now willing to support the company’s efforts.
Source:expressnewsghana.com