"The Francophone and Anglophone governance are entirely different systems of governance. Even when most of the mines are English speaking, the local participation changes the way the mines and our clients operate. Thus, we find it is not only the country that creates challenges but it can also be the project, mine or clients we are contracting with."

Federico De Simone

CHAIRMAN, DE SIMONE GROUP

January 20, 2020

Please provide us with an overview of the De Simone Group?

We are predominantly involved in the civil engineering construction industry, which includes structural concrete works, earthworks, buildings and mechanical erection directly related to the mining sector. Furthermore, we can provide services for contract mining and on selected activities such as drill-blast and load-haul. Additionally, we also own and operate our own quarry, pre-cast and multiple batch plants  for material supplies to our operations and to the public.

We principally work for engineering companies. We are generally a sub-contractor to these companies, but in many cases we work directly with the mining houses. We are in the market to smart partner with strategic engineering companies to deliver infrastructure projects with EPC and EPCM models to compliment our clients needs.

How big is the mining sector compared to the other sectors that you operate in?

We started working in the mining sector in the early 1990s and have watched the mining industry expand yearly throughout West Africa. We presently have work in mining in Burkina Faso, Ivory Coast, and in Ghana. Our work in the mining sector fluctuates depending on investment spend and commodity prices, hence the industry is extremely cyclical and thus so are our operations in this sector.

What challenges do you face in Ghana that you do not face in other countries? 

The Francophone and Anglophone governance are entirely different systems of governance. Even when most of the mines are English speaking, the local participation changes the way the mines and our clients operate. Thus, we find it is not only the country that creates challenges but it can also be the project, mine or clients we are contracting with.

How has the infrastructure in Ghana developed over the last few years?

Although we have seen Ghana’s infrastructure grow vastly over the last ten years, there are various components of the Ghanaian infrastructure still requiring development. Current investment into Ghana’s infrastructure is mainly private investment funding and thus focuses on private infrastructure and not to benefit Ghana as a whole.

Is there a certain standard of technology that is expected, and/or is the mining sector reciprocal to technological development?  

The company is primarily focused in providing customer focused projects to international standards in all sectors. Our main emphasis is to provide quality and sustainable products to our clients. This is done through our knowledge base and experienced management.

There are a few new technologies we use in our industry but the main goal is to provide sustainable and durable products.

Do you think that Ghana lacks skills?

No. You can get all the necessary skills we require in-country. Due to the Ghanaian skill levels we have Ghanaian employees working for us throughout West Africa. We have worked in Ghana for a long time and therefore have a large data base of in-house resources who are highly qualified and competent in their disciplines.

What is your opinion on the increasing presence of China in Africa?

We only work on private contracts and not in the public sector and China’s presence is mainly felt in the public sector.

In the mining sector in Ghana they are mostly involved in bauxite, which complements their own economic requirements. We see a lot of activity in other countries but not exceedingly in West Africa.

What has been your growth strategy?

Our growth strategy is to follow the leading market indictators. As construction in the mining sector is cyclical, we diversify our portfolio to minimize risk with sector fluctuations. The Ghanaian mining sector development has been on a decline the past couple of years and hence the De Simone Group has developed further into the oil & gas sector. With our key resources already developed from the mining sector it is a strategic alignment between the two sectors.

Has the implementation of local content laws made you more competitive because you are an indigenous company?

The implementation of the local content laws did not change much for the De Simone Group. As an indigenous Ghanaian company who employs 90% local staff, the implementation of the local content laws has definitely created awareness of local companies. However, as an indigenous company you still need to perform to international standards and the De Simone Groups track record supports our clients requirements.

What quality assurance mechanisms do you have in place?

We follow all the international standards and specifications and have a fully comprehensive quality management system. Our system ensures that the full contract lifecyle meets our client’s requirements and specifications.  

What do you mean when you say that you provide clients with the full mining package?

Our niche market is in civil engineering construction and being an experienced contractor. We have strategically grown from our core civil construction business expanding into associated activities such as earthworks, quarrying and contract crushing. We are implementing another strategic focus area into enlarging our structural capabilities to include medium to heavy structural steel components and its associated follow on disciplines.

What are your future growth aspirations?

The De Simone Group’s current vision is to entrench ourselves into the West African construction industry making us the contractor of choice with customer focused solutions.

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