The Institute of Economic Affairs (IEA) is pushing for an end to the renewal of mining leases for foreign companies, insisting that such leases must be transitioned to Ghanaian ownership.

The policy think tank welcomed the government’s recent decision to cut lease durations from 30 to 15 years but said it was disappointed that three foreign-owned firms, Newmont Golden Ridge Ltd, Gateway Exploration Ltd, and GBF Associates Ghana Ltd, had their leases renewed without a clear roadmap for Ghanaian takeover.

A senior fellow at the IEA, Dr E.O. Osae, said the institute recognised Parliament’s ratification of a special one-year, non-renewable lease granted to Boston Goldfields Limited.

He explained that the measure was aimed at ensuring a smooth handover of the Daman mine from Goldfields to the Government of Ghana.

“While our preference was for a complete halt to any further leases to foreign entities and the immediate assumption of local ownership of our natural resources, we acknowledge the government’s efforts to grant a one-year lease with strict non-renewable terms as a transitional measure,” Dr Osae said.

He added, however, that the renewal of three other leases at the same time, without a plan for transition, was “a disappointing development, as it represents yet another missed opportunity to reclaim ownership of our natural resources and channel them towards the sustainable development of our country.”

The IEA argued that despite more than a century of commercial mining, Ghana has gained little from its mineral wealth.

Dr Osae said, “After more than a century of engaging foreign entities in commercial mining under colonial-era contract frameworks, Ghana has yet to realise meaningful economic transformation from its mineral wealth.”

He pointed out that the state of the country and the low returns from gold exports were evidence of this. In 2024, Ghana’s total gold exports reached 11.6 billion US dollars, but the government earned only 2.3 billion US dollars, less than 20 per cent of the value.

Dr Osae linked Ghana’s economic struggles to its inability to mobilise enough domestic revenue.

“At the heart of Ghana’s economic challenges is the country’s inability to raise sufficient domestic revenue to finance development. This has led to an over-reliance on domestic and external borrowing, plunging the country into a recurring economic crisis since independence,” he said.

He also criticised international support programmes.

“The many policy prescriptions from the International Monetary Fund (IMF) and World Bank have yielded limited results in deepening Ghana’s dependence on external assistance,” he added.

Former Chief Justice and IEA fellow, Her Ladyship Sophia Akuffo, also spoke in favour of the call. She said there should be “a complete halt of leases to foreign-owned mining companies”.