Dr. Frank Boateng, Acting Director of the Institute of Mining Research and Governance (IMRIG) at the University of Mines and Technology, has called for increased Ghanaian participation in the country’s extractive sector. He argues that broader local ownership is critical for citizens and mining communities to benefit more from Ghana’s natural resources.
Dr. Boateng stressed the need for deliberate policies to expand indigenous involvement in mining operations. He noted that Ghana must move beyond limited state participation. He wants to create structures that allow ordinary citizens to own stakes in mining ventures, possibly through wider stock market participation. This approach aims to secure stronger representation on the boards of mining companies.
This push for greater local ownership aligns with ongoing discussions about resource control and wealth distribution in Ghana. Data shows that the extractive sector contributes significantly to the national economy, but local communities often feel underserved. Previous initiatives like the Minerals Income Investment Fund’s Small-Scale Incubation Project aimed to empower Ghanaian operators. However, the overall impact on widespread local ownership remains a challenge.
“I still stand by my point where I feel that Ghanaian participation needs to increase,” Dr. Boateng stated on May 26. He explained that increasing local ownership would improve national benefits. It would also strengthen Ghana’s influence in major operational and strategic decisions within mining companies.
Looking ahead, decision-makers might explore legislative changes to facilitate tax-to-equity conversions. They could also review mining lease renewal processes to include increased local participation clauses. Broader citizen participation in the stock market for mining companies will be another area of focus. These steps could reshape the economic landscape of Ghana's mining sector.
Dr. Boateng suggested the government could convert portions of taxes owed by mining firms into equity stakes. This would increase Ghana’s shareholding beyond the constitutionally mandated 10 percent free carried interest. He questioned, “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 further proposed using mining lease renewal negotiations as opportunities to secure greater Ghanaian participation. “If mining companies are coming to lease renewal, we can renegotiate and increase our participation,” he said. He cautioned against concentrating ownership solely in government hands. He believes broader citizen participation through stock ownership would be more beneficial.
Ghana’s changing political landscape often creates uncertainty within the mining sector. Dr. Boateng warned that policy reversals discourage long-term investment planning. “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.
He also identified the artisanal and small-scale mining sector as a major opportunity. Supporting well-performing local small-scale mining operators with financing and technical assistance could transform them into medium-scale companies. This would attract larger investments, he believes. Empowering Ghanaian-owned mining firms is expected to lead to greater national benefits and stronger local economic development.