Electrochem Ghana Limited (EGL), a salt production subsidiary of the McDan Group of Companies, has launched a Community Outgrower Scheme aimed at empowering artisanal salt miners within its Songor Lagoon Salt Mine concession.
The initiative is part of the company’s continuing community engagement efforts, ceding about 2,000 hectares of its concession to local salt miners to foster entrepreneurship and environmental stewardship.
The scheme was officially unveiled by Electrochem CEO, Mr. Razak Adam, during a ceremony at the company’s premises on Monday, August 26.
Mr. Adam emphasized Electrochem’s commitment 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 neighbours, our partners, and our future,” Mr. Adam stated.
The Community Outgrower Scheme allows local residents to pool resources, register as businesses, and participate directly in salt mining in pans created by EGL.
The initiative is expected to create jobs, stimulate local economies, and provide long-term opportunities for community members.
This initiative comes after a Parliamentary intervention aimed at addressing conflicts between the company and local residents, who had expressed concerns that their livelihoods were negatively impacted 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 emphasized the company’s commitment to eco-friendly mining practices, ensuring that the initiative integrates sustainable approaches to protect the local environment.
Mr. Adam outlined the process for community members to join the scheme: 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 called on notable organizations and community groups, such as DESPA, ASLA, and The Youth Forum, to apply and take full advantage of the opportunity.
In his address, the Paramount Chief of the Ada Traditional Area, Dzetse Nene Kabu Abram Akuaku III, urged the proper execution of promises made by Electrochem regarding the utilization of the Songor Lagoon for salt production.
According to him, 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 included creating 4,500 jobs, establishing a 3 million cedis 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.
He, however, expressed concerns about the current state of implementation and stressed that while EGL has made progress, such as constructing necessary infrastructure and offering financial support, significant steps are still required.
Dzetse Nene Akuaku III 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 ensure 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 said.
Alfred Nokobi Wuago, Chairman of the Kakipe Salt Producers Association, also voiced strong support for the training initiative offered by EGL as part of the outgrower model. He stressed that training is essential for ensuring high-quality salt production, stating,
“We are ready to undergo the necessary training to meet the standards required to produce quality salt for Ghana and the world at large.”
Amos Martey Osabutey, Chairman of the Ada Youth for Development, echoed the optimism regarding the job opportunities being created for the local youth. While acknowledging initial concerns and agitations, Osabutey stressed that tensions have eased as land has been allocated to the youth, providing a direct stake in the business.
Though some opposition groups remain unsatisfied with Electrochem’s actions, Osabutey assured that the majority of the youth are now willing to support the company’s efforts.
“The narrative is changing, and the youth will be involved,” he said.
