Government Commended for Suspending Transition from Multi-National to Local Contractors to Allow for Review
The Government of Ghana deserves applause for suspending the directive to transition contracts from Multi-National Companies to local contractors, pending a review of the law. The decision shows foresight and a commitment to ensuring that Ghanaian firms are not set up to fail, but are instead given the chance to compete fairly on payment terms, safety standards, and tax obligations.
A rushed transition would have risked placing local contractors in positions where they cannot meet the same operational and compliance benchmarks as multinational firms. By pausing the process, the government is creating room to address these structural gaps so that when the transition happens, it is sustainable and beneficial for both workers and the economy.
Engr. Yaw Ansah, Tano North Constituency Secretary of the NDC has welcomed the suspension as a practical step toward strengthening indigenous participation.
“This is the right approach,” Engr. Ansah said. “We want Ghanaian contractors to take over more projects, but that can only happen if we level the playing field. The review will help us look at payment timelines, workplace safety requirements, and tax burdens so that local firms are not disadvantaged compared to their multinational counterparts.”
He stressed that protecting local contractors now means protecting Ghanaian jobs, knowledge transfer, and long-term capacity in the mining and infrastructure sectors.
Finally, the government have done well for this review after talks with the Ghana Mines worker's Union.
Once the gaps are closed, the transition will deliver real value without compromising project delivery or worker welfare.
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