The Institute of Economic Affairs (IEA) has challenged the Government to immediately review all contracts pertaining to Ghana’s natural resources so that the country can gain the most from their exploitation.

The review, she said, should make the country earn a return of at least 60 per cent on its natural resources, worth over 10 trillion, to support the country’s economic transformation and curb its debt burden.

Justice Sophia Akuffo, a former Chief Justice and Fellow of the IEA, called at a press briefing in Accra on Monday, on: “Maximising the benefits from Ghana’s natural resources.”

She raised concerns over the exploitation of Ghana’s natural resources, for many years, under concession leases that ceded exclusive rights to foreign firms who kept disproportionally high shares of the products and paid “paltry” amounts in the form of royalties and taxes.

The natural resources include gold, diamonds, bauxite, iron ore, oil, natural gas, cocoa, and timber.

She asked the Government to learn from the United Kingdom (UK), Australia, Qatar, Tanzania, Bostwana, Angola, and Eritea, who reviewed their mining laws and contracts to get up to 50 per cent in their national interest.

“For example, in Angola, the Petroleum Income Tax is carried out under a Production Sharing Agreement and taxable income at the rate of 50 per cent. Operations carried out under other contracts, such as consortium agreements, are subject to taxable income at a rate of 65.75 per cent,” Justice Akuffo stated.

The former Chief Justice cited UK where there was a ringfenced corporation tax of 30 per cent, a supplementary charge of 10 per cent and energy profits levy of 38 per cent on the exploration and production of oil and gas.

Similarly, Eritrea, under Article 41 of its Mining Law Proclamation, allowed the government to an equity participation of not exceeding a total of 40 per cent, including a participation interest of 10 per cent of any mining investment.

“The time has come for Ghana to end its Guggisberg-type contracts skewed in favour of foreign companies and adopt modern best practices, which provide a fair share of the resource rent to the country rather than foreign mining firms,” she said.

She called for the setting up of a five-member committee, comprising experienced Ghanaians, to review and recommend amendments to all natural resources laws and contracts to optimise the benefits for the country.

“Ghana should adopt wholly owned Ghanaian production lines or at least joint Ghanaian-foreign ownerships involving sharing of costs and products in the natural resource sector,” the former Chief Justice said.

Dr John Kwakye, the Director of Research at IEA, said: “As a country, we are very rich in the grounds, but poor on the surface,” adding that leaders had not done enough to maximise the benefits of the country’s natural resources for its development.

“Over 10 trillion dollars could be realised from natural resources if there are the right frameworks… if you are not ready, leave it in the ground until there is the right expertise and capital,” he said.

“Even if it will take street protests for the government to make natural resource contracts in favour of Ghanaians, the IAE will do so.”

Dr Kwabena Nyarko Otoo, the Deputy Secretary General, Trades Union Congress (TUC), urged the government to take bold steps to review all laws and contracts in favour of the country.

He pledged TUC’s continuous working with the IEA and other partners to make policies to ensure the necessary shifts in foreign ownership and control of Ghana’s natural resources.