LION Model for West Africa

LION Model for West Africa

Gold is an important part of the economic ambitions of many West African countries, and many African countries use the African Mining Vision to harness the resource sector for their socio-economic development. The substantial mining procurement market can have a significant impact in this regard. The different institutional, economic, and regulatory conditions of West African countries result in differences in the extractive industry’s needs for supply products. For example, Ghana’s gold sector is one of the largest in West Africa, so the procurement expenditures of Ghanaian mines dominate in many categories. The low level of electrification and lack of connection to the central power grid in the countries of Mali and Burkina Faso have resulted in high expenditures on fuels and lubricants for power generation. In contrast, direct expenditures on electricity are correspondingly low.

The following list shows the four top-spending West African countries in seven spending categories in the gold mining procurement market (2021 figures in USD):

  1. Fuel and lubricants for energy supply: 359 million (Burkina Faso), 226 million (Mali), 62 million (Senegal), 40 million (Guinea)
  2. Fuels and lubricants for mining: 176 million (Burkina Faso), 144 million (Ghana), 74 million (Mali), 53 million (Guinea)
  3. Reagents: 156 million (Ghana), 156 million (Burkina Faso), 82 million (Mali), 50 million (Guinea)
  4. Spare parts and operational expenditures: 139 million (Ghana), 123 million (Burkina Faso), 70 million (Mali), 42 million (Guinea)
  5. Grinding media: 88 million (Ghana), 85 million (Burkina Faso), 46 million (Mali), 27 million (Guinea)
  6. Explosives and accessories: 84 million (Ghana), 79 million (Burkina Faso), 46 million (Mali), 25 million (Guinea)
  7. Electricity: 193 million (Ghana), 49 million (Côte d’Ivoire), 40 million (Guinea).