Dr. Frank Boateng, the Acting Director of the Institute of Mining Research and Governance (IMRIG) at the University of Mines and Technology (UMaT), is demanding a significant increase in Ghanaian involvement within the nation's extractive sector. He believes that greater local ownership is vital for ensuring that the country's natural resources translate into more benefits for citizens and mining communities. Dr. Boateng’s call comes as Ghana seeks to maximise its gains from mining, oil, and critical minerals.
Speaking at a JoyBusiness Roundtable discussion, Dr. Boateng emphasized the need for concrete government policies to expand indigenous participation in mining activities. He stated that Ghana must move beyond merely having state participation. Instead, the country should create systems that allow ordinary Ghanaians to own shares in mining ventures, suggesting a wider presence on the stock market. This expansion aims to distribute the economic gains more broadly.
This push for increased local participation fits into a larger economic discussion in Ghana. For years, the country has sought ways to ensure its vast mineral wealth benefits its people more directly. Data from the Ghana Statistical Service shows the extractive sector contributes significantly to the GDP, yet the flow of benefits to the grassroots has often been questioned. Previous efforts have focused on state-owned enterprises, but Dr. Boateng suggests a more diversified approach is needed now.
Dr. Boateng’s analysis points to the benefit of improved national influence. Increased local ownership, he stated on Tuesday, May 26, would not only enhance the national benefits derived from these sectors. It would also strengthen Ghana's voice in crucial operational and strategic decisions made by mining companies. "I still stand by my point where I feel that Ghanaian participation needs to increase," he said.
To achieve this, Dr. Boateng proposed innovative policy ideas. He suggested the government could explore converting a portion of taxes owed by mining firms into equity stakes. This would allow Ghana's shareholding in these companies to grow beyond the current constitutionally mandated 10 percent free carried interest. "Can we even defer some of our taxes to increase our equities in some of these mines, so that it pushes our ownership beyond the free carry of 10%?" he questioned. He also sees mining lease renewal negotiations as prime opportunities to renegotiate for greater Ghanaian equity.
However, Dr. Boateng issued a warning against concentrating ownership solely within government or among political figures. He stressed that wider citizen participation through stock ownership would prove more durable and beneficial in the long run. He also highlighted the disruptive effect of Ghana's political landscape on investment. "Looking at the nature of our politics in this country, when government changes, things change dramatically, and sometimes decisions are reversed. This does not help," he noted.
A significant avenue for increasing Ghanaian ownership, according to Dr. Boateng, lies in the artisanal and small-scale mining sector. He believes supporting successful local operators with finance and technical aid can transform them into medium-scale companies. These companies could then attract larger investments. He referenced the Minerals Income Investment Fund’s (MIIF) Small-Scale Incubation Project as an example of such support. Empowering Ghanaian-owned firms and broadening citizen stakes ultimately means greater national economic development and stronger local communities.