Economist Pushes for Law to Guide Use of Ghana’s Gold Revenue
By Zed Newsroom
Economist and Head of Finance at Merban Capital, Mr Nelson Cudjoe Kuagbedzi, is urging government to introduce legislation that will ensure revenue from Ghana’s gold mining industry is channelled into priority sectors of the economy. His comments follow a new global ranking that places Ghana as the sixth-largest gold producer in the world and the top producer in Africa.
Speaking on the Business Breakfast on Zed with Nii Trebi Hammond, Mr Kuagbedzi said the impressive ranking should translate into tangible benefits for citizens. He noted that although gold is a major source of foreign exchange, the revenue currently goes into the Consolidated Fund without any binding rules on how it must be allocated.
“Revenues from the mining sector go into the Consolidated Fund and we use them like any other inflow,” he said. “But if we want the mining sector to support agriculture, infrastructure, services, and other productive areas, then we need legislation that prescribes how mining revenue should be used.”
He pointed to the petroleum sector as an example of how a clear legal framework can deliver traceable development outcomes. According to him, because petroleum receipts are governed by law, specific infrastructure projects can be directly linked to oil revenue. He believes a similar approach for gold would allow government to dedicate part of the mining proceeds to agribusiness, manufacturing and other growth-driven sectors.
Mr Kuagbedzi also warned that the country must prepare for a time when gold resources are no longer available. “Gold is not replenished. Once we extract it, that ends it,” he said. “We need to be strategic and invest today’s gold revenue in sectors that can generate sustainable income and long-term foreign inflows.”
He emphasised that a dedicated legal mechanism for managing gold revenue would improve accountability and ensure that Ghana’s position as a leading gold producer contributes directly to national development.
