Employment, together with creation of value and environmental benefits, are the main project metrics and will be constantly measured and improved during the execution of the activities.
SMART OIL Mission is the creation of job in Rural Ghana by introducing profitable Biofuel production in an environmental friendly way.
The integration of the local communities in the implementation process is essential and
represent a success factor for the project. During the overall design process, Smart Oil ltd took into consideration the importance of community involvement and buy-out.
The community involvement in the project can be dived in two main categories:
• Income generation Activities
• Social Intervention Initiatives
Income Generation Activities
With a nucleus farm of 4650 HA over the next four years Smart Oil Ltd will employ a total of 1,500 workers. We currently have 42 workers engaged on the Pilot plantation and foresee an increase to 100 by the end of April, once granted the completion of the Land Concession. The employment target for next year is around 300 and will gradually increase to peak at 1,500. This is our direct employment. We anticipate an additional 500 people will be engaged due to the increase in economic activities from the monthly pay of our workers.
OUTSOURCED PRODUCTION OF JATROPHA
Smart Oil Ltd per its business plan intend to fully support and subsidize a vibrant out-growers schemes for farmers interested in supplementing their current income with a cash crop like Jatropha.It is our position that, as the farm gate prices tend to be volatile with food crops, farmers can in fact cushion any adverse shock with our stable and guaranteed seed purchase. Invariably, this could increase the food security of the area and poverty reduction would be effective in the area.
SMART OIL out-growers scheme will focus on farmers who will be interested in both cash and food crops. Our Policy will be to try as much as possible to incorporate the production of both food and cash crops through inter-cropping, side cropping or separate farms. Since the company will heavily subsidized the operations it will serve as an incentive for famers to gauge the viability of future sales which has been the bane of similar schemes. Our target of 2,000 hectares in four years for out growers could mean over a 2,000 farmers or the youth will be engaged with an average of 1 hectare. The scheme will be implement with technical co-operation with local Agriculture Extension officers.
PRODUCTION OF FOOD CROPS
The company per agreement with Chiefs must grow some food crops either through direct efforts or through farmers. Smart Oil Ltd is exploring the possibility of engaging existing farmers to grow yam and other cereals to be sold at subsidized prices to the community. The company is also considering a system where seeds can be exchanged for heavily subsidized local grains like rice which will be grown by designated farmers. We estimate about 200 farmers might be engaged in our food production efforts.
Social intervention Initiatives
SMART OIL has planned a precise strategy in terms of Corporate Social Responsibility (CSR). There are some mandatory measures that the Company will take, in synergy with the Land Lease contracts signed with the STOOL LAND Authorities, thanks to a dedicated Community Fund. The Community Fund which forms part of our land lease agreement with the Chief has a seed capital of over 25,000 GHS (250 million) in the first year and an additional yearly contribution of 13,600 GHS (130 million). The fund will be managed by the communities with Government representation through the District Assembly. Selection, planning and execution will be done by the elected community representatives. Other measures will be taken by the company in the sectors of HEALTH and EDUCATION, that are considered as priorities
....It has passed now 5 years that we are squeezing ideas to reach a concrete sustainble model for biofuel supply chain in Ghana. Some acheivements, but still a lot of challenges. I would like to share information with entrepreneurs, managers, professionals, decision makers involved in the same area. With a…Continue
Posted on May 15, 2012 at 18:00