IEA urges Ghana to own mineral resources
The Institute of Economic Affairs (IEA) has called for a bold overhaul of Ghana’s approach to mineral resource management, advocating for full ownership of the country’s mineral wealth to spur job creation, build national wealth, and develop local technical capacity.
This comes in response to the reported sale of Newmont’s Akyem Mine and ongoing concerns about the country’s reliance on foreign investors for resource exploitation.
In a detailed statement, the IEA referenced the United Nations Charter of Economic Rights and Duties of States, which supports nations in maximizing the benefits derived from their natural resources for development. The institute emphasized that Ghana should seize the opportunity to take greater control over its mineral assets, ensuring that the wealth generated contributes to long-term economic growth, improved infrastructure, and employment opportunities for Ghanaians.
“Relying on foreign capital and expertise should no longer be an excuse,” the IEA said, dismissing the commonly held belief that Ghana lacks the capacity to manage its resources independently. The institute pointed to examples of countries that have successfully negotiated more favorable contracts with foreign partners, such as production-sharing or service agreements, which give them greater control over their natural resources while still attracting necessary investments.
The IEA stressed that Ghana could renegotiate its contracts to ensure the country retains a larger share of the proceeds from its mineral wealth. “We must explore all options to secure a greater stake in our resources,” the statement read, underscoring the importance of moving beyond traditional concession agreements that disproportionately favor foreign corporations.
To achieve this, the IEA proposed empowering Ghana’s Geological Survey Department to conduct a thorough mapping of the country’s mineral deposits. This would enable the government to use these deposits as collateral for raising capital, reducing the need for extensive foreign investment. By bolstering the department’s capacity, the institute argues, Ghana can build its expertise in managing and exploring its mineral wealth, which would eventually lead to greater national control.
A key element of the IEA’s recommendations is the development of local talent. The institute called for increased investment in training mining engineers and other professionals to equip them with the skills needed to manage Ghana’s resources in a sustainable and efficient manner. This would reduce the country’s dependence on foreign experts while ensuring that Ghanaian workers benefit directly from the industry.
Beyond resource management, the IEA highlighted the need for deeper reforms in the governance of natural resources to curb corruption and prevent hasty deals that undermine national interests. The institute proposed two fundamental amendments to Ghana’s legal framework:
- Amending Article 257(6) of the Constitution, which currently vests ownership of Ghana’s natural resources in the President on behalf of the people. The IEA argued that this provision grants the President too much power to negotiate and sign away resources without adequate checks. Instead, the institute suggested vesting the resources in the state, requiring that all mineral contracts be subject to parliamentary approval, as stipulated by Article 268(1) of the Constitution.
- Introducing a clause in the Constitution or the Minerals and Mining Act (2006, Act 703) that prohibits the government from signing major resource contracts within six months of the end of its four-year term. The IEA believes this would help prevent the signing of “eleventh-hour” deals that could serve personal or political interests rather than the nation’s welfare.
The IEA’s recommendations come at a time when Ghana faces mounting challenges in creating sustainable jobs for its growing population and addressing the economic inequality exacerbated by the mismanagement of natural resources. The institute is calling for a new approach to mineral wealth that prioritizes long-term national development over short-term gains for foreign investors or political elites. By implementing these reforms, the IEA believes that Ghana could unlock the full potential of its mineral wealth, creating a more equitable distribution of resources and securing a brighter economic future for the country.
