Reinvest mining royalties in local communities – CSOs
CIVIL society organizations (CSOs) in Ghana’s extractive sector have launched a campaign advocating for the reinvestment of tax revenue from small-scale mining into communities affected by mining activities.
The campaign, dubbed ‘Reinvest Royalties,’ seeks to direct mining royalties towards vital infrastructure projects such as schools, hospitals, and environmental protection efforts in mining regions.
The initiative argues that allocating a portion of the royalties back to these communities will not only promote local development but also encourage more miners to operate legally. It aims to reduce the dependency on illegal mining, commonly known as ‘galamsey’, by building local wealth through sustainable means.
Empowering Communities to Tackle Illegal Mining
The Reinvest Royalties campaign is actively collaborating with community leaders in mining districts such as Bole and Amansie West. Through a combination of local radio outreach and social media engagement, the campaign has garnered significant support. Millions of people have interacted with the campaign’s messages on social platforms, with many expressing approval of the call to reinvest royalties.
The campaign is part of a broader initiative led by the UK-Ghana Partnership Programme, in collaboration with civil society organizations like the Natural Resource Governance Institute, KASA, CEDA, Institute for Energy Security, Arocha Ghana, and SYND, all working together under the Shared Prosperity Initiative.
These groups are advocating for a shift in mining regulation by focusing on community-driven solutions, rather than relying solely on enforcement to combat illegal mining.
Technical Advisor for the UK-Ghana Partnership Programme, Dr. Steve Manteaw, emphasized that empowering mining communities by reinvesting royalties could be a game-changer.
“If we want to end galamsey, we must give mining communities a stake in the process. By ensuring that they benefit from mining royalties, communities will be more likely to embrace regulated mining and reject illegal operations,” Dr. Manteaw explained.
Environmental Protection Through Royalties
Beyond infrastructure, the Reinvest Royalties campaign emphasizes that mining royalties could be used to fund environmental protection initiatives. Royalties could finance geological surveys to promote more precise, less harmful mining practices, as well as support the development of eco-friendly extraction methods. Additionally, these funds could be allocated to the reclamation of mining sites, ensuring the land is restored after mining activities cease.
Billions Lost Due to Illegal Mining
Ghana continues to lose billions of dollars each year due to illegal mining and gold smuggling. The Reinvest Royalties campaign highlights that better regulation can help retain this wealth within the country and use it to benefit Ghanaian citizens.
However, the campaign stresses that forced regulation alone will not solve the problem. Instead, the government must create an environment where mining communities are incentivized to embrace regulation by ensuring they directly benefit from it.
A Cycle of Better Regulation and Stronger Communities
The campaign advocates for a model where better mining regulation generates more revenue for Ghana, and a portion of that revenue is reinvested in the communities where mining occurs. This approach, they argue, would create a positive feedback loop — where royalties lead to better regulation, which in turn increases royalties and benefits for the communities.
By ensuring that mining communities directly benefit from the royalties on regulated mining, the campaign suggests that these communities will become less tolerant of illegal mining activities, further supporting the fight against ‘galamsey’. Reinvesting mining royalties into affected communities has the potential to foster sustainable development, strengthen local economies, and contribute significantly to the long-term eradication of illegal mining in Ghana.
