Economist Calls for Legislation to Direct Gold Revenue into Key Sectors

By Nii Trebi Hammond

 Economist and Head of Finance at Merban Capital, Mr. Nelson Cudjoe Kuagbedzi, is urging policymakers to pass legislation that will ensure Ghana’s gold mining revenues are invested in other productive sectors of the economy. His call follows a recent global report ranking Ghana as the sixth-largest gold producer in the world and the leading producer in Africa. Speaking on the Business Breakfast on Zed, Mr. Kuagbedzi noted that while the ranking is a milestone worth celebrating, it must translate into real benefits for ordinary Ghanaians. He observed that proceeds from gold mining currently flow into the Consolidated Fund, where they are treated as general revenue without any mandatory allocation structure. “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 revenue model as an example Ghana can emulate. According to him, because petroleum funds are guided by law, government can trace specific projects, such as road infrastructure, to petroleum receipts. A similar framework for gold, he argued, would help channel part of the mining proceeds into agribusiness and manufacturing to drive diversification. Mr. Kuagbedzi also cautioned that Ghana must prepare for a future beyond gold. “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 believes that a dedicated legal framework will not only strengthen accountability but also ensure that Ghana’s status as a top gold producer directly supports national development and economic transformation.