Designing a Community-Based Agribusiness Development Program for Newmont Mining Corporation in Ghana

Newmont Ghana Gold Limited began production at its property in Ghana’s Brong-Ahafo region in mid-2006. The mine itself is surrounded by small, rural farming communities. Like most mine projects, this project faced social risks arising from the impact of mine operations on these communities. Newmont is committed not only to mitigating this risk, but to adding value so that local communities can participate in the benefits arising from development of the gold mine.

Newmont sought DAI’s leadership to develop an economic growth and sustainable development plan for the communities affected by its operations. Beginning during the construction phase, upon completion of Newmont’s environmental and social impact assessment and resettlement plan, DAI worked in partnership with a team of rural finance experts to recommend opportunities to improve the agribusiness industry. The team analyzed the chain of events leading from input supply to production techniques to marketing channels in order to identify leverage points to improve farmers’ and small businesses’ ability to get their products to market profitably. The DAI team worked collaboratively with Newmont management, local governments, NGOs and the communities themselves to ensure the sustainability and local ownership of the program.

As a result, DAI delivered a comprehensive strategy for Newmont to serve as the lead sponsor of a multi-year, multi-donor, agribusiness development program to stimulate economic growth by providing opportunities for communities to increase agricultural productivity and linkages to supply chains. The innovative program structure will enable Newmont to improve its management of its diverse community investments, while creating a vehicle to develop local communities' ability to govern their own development programs. Newmont views this program as a cornerstone in its overarching community investment strategy, demonstrating its commitment to the social and economic well-being of the communities in which it operates.

DAI’s support to Newmont has resulted in:

  • Development of a results-oriented program that will generate long-term, sustainable economic growth for its communities.

  • A management and governance mechanism that allows Newmont to manage its community investments.

  • A mechanism to provide community leadership and ownership of a key economic growth program.