Guinness Ghana Breweries Limited (GGBL) has held a workshop on Local Raw Material (LRM) sourcing in Accra.

The aim of the workshop was to dialogue with key stakeholders on transforming Ghana’s agriculture supply chain for industry and also showcase the business’ local sourcing agenda.

Since December 2012, GGBL has significantly increased its usage of local raw materials, specifically sorghum, maize and cassava, for the production of its premium brands.

This was after government passed the Customs and Excise Act 855 -- an excise duty concession on a sliding scale for breweries using local raw materials for the manufacture of excisable goods.

Peter Ndegwa, Managing Director of GGBL noted at the workshop that across Africa, on average, Diageo, GGBL's parent company, sources 50% of its raw materials from local sources.

He revealed that Diageo has ambitions to increase this to 70% by 2015.

"In Ghana, GGBL currently sources over 40% of raw materials locally.  We are confident we can achieve our 50% target by end 2015 with the support of all stakeholders", he said.

According to him, with the right investments into commercialisng agriculture in Africa, the sector could exceed petroleum in terms of economic impact.

GGBL’s vision is to generate long-term business value with sustainable, local raw materials that meet quality standards and also impact positively on communities it operates.

So far the project has impacted over 16,300 farmers and families providing a sustainable source of livelihood, and expanded the revenue base whilst adding value across the chain. 

Deputy Finance Minister, Mona Helen Quartey; Tax Policy Advisor at the Finance Ministry, Dr. Larbi Siaw; Chief Executive of the Association of Ghana industries, Seth Twum Akwaboah, as well as  representatives from the Ministries of Trade and Industry, Food and Agriculture, aggregators, processors and technical development partners attended the workshop.

Dr. Larbi Siaw indicated government’s continued commitment to support local raw material sourcing and urged GGBL to continue in its efforts to develop Ghana’s local supply chain.