The Executive Director of the Centre for Policy Scrutiny, Dr Adu Owusu-Sarkodie, has called for a carefully structured increase in state and local participation in Ghana’s mining sector, cautioning against any rushed move towards full nationalisation.

Speaking at the JoyBusiness Roundtable discussion on the theme “To Nationalise or Transform: Rethinking Ghana’s Approach to Gold Mining, Oil, and Critical Minerals”, Dr Owusu-Sarkodie underscored the strategic importance of Ghana’s natural resources to the national economy and public finances.

He noted that gold production alone generated about US$21 billion in 2024, accounting for roughly 67 per cent of Ghana’s total exports. According to him, this translates to approximately GH¢264 billion when converted at the average exchange rate.

Dr Owusu-Sarkodie observed that the figure exceeded government revenue and grants by nearly GH¢40 billion, highlighting the central role of mining in sustaining the economy.

He further stated that Ghana’s economy has historically relied on gold and cocoa since 1911, with mining continuing to serve as a major source of export earnings. Mineral royalties, he added, amounted to GH¢5.2 billion in 2024.

Comparing this with revenues from abolished taxes such as the COVID-19 levy, e-levy, and betting tax, Dr Owusu said the combined taxes generated about GH¢4.8 billion during the same period, illustrating the significant contribution of the mining sector to public finances.

He also pointed out that Ghana is currently Africa’s leading gold producer and ranks sixth globally, producing between 130 and 150 tonnes of gold annually — comparable to countries such as Kazakhstan and Uzbekistan.

Despite the sector’s output, Dr Owusu expressed concern over what he described as the relatively low contribution of mining to public revenue, questioning how Ghana could better position itself to derive greater benefits from its mineral resources.

Referencing research by the Institute for Fiscal Studies, he said Ghana’s economic rent from mining between 2011 and 2018 was estimated at US$43 billion, with the government receiving only US$4.5 billion, representing about 10.4 per cent.

Dr Owusu-Sarkodie said the figures reflected the high-risk and capital-intensive nature of the mining industry, but also its high return potential, arguing that Ghana must structure its participation more effectively to capture greater value.

However, he warned against abruptly abandoning concessionary agreements in favour of full nationalisation, stressing that such an approach could destabilise the sector.

Instead, he advocated a gradual and tactical transition towards increased state participation, noting that radical policy shifts would be risky given the number of mining companies operating in the country.

He acknowledged that Ghana may have made policy mistakes in the past by limiting state participation in a sector characterised by both high risks and high rewards.

He also referenced international models adopted by countries such as Norway, Qatar, Saudi Arabia, China, and Botswana, noting that many resource-rich nations pursue stronger state participation strategies than Ghana.

According to him, mining contracts generally fall into three categories: service contracts, production-sharing agreements, and concessionary arrangements.

He explained that Ghana’s mining industry has largely operated under the concessionary model, where companies extract resources with limited state ownership, unlike other arrangements that allow for greater national control and revenue retention.

Dr Owusu-Sarkodie concluded that Ghana must reassess its approach carefully and strategically to ensure the country derives greater value from its vast mineral resources.