Ghana must expand how it measures value from its mining sector, according to Ben Boakye. Mr Boakye, Executive Director of the Africa Centre for Energy Policy (ACEP), warned that focusing only on taxes, royalties, and production distorts the national discussion about resource nationalism.
He stated this during a NorvanReports XSpace Special Edition on Ghana’s mining sector. The national debate must move beyond only how much gold is produced and government receives. Instead, Ghana needs a deeper look at how mining supports job creation and local businesses. It also needs to assess supply-chain involvement, community development, and money retained within the country.
This call for a wider assessment comes amid increasing public debate on Ghana's mining benefits. Questions exist about lease renewals, local participation, and state control in the sector. Critics also question if foreign mining firms deliver enough value to the Ghanaian economy. Mr Boakye cautioned these discussions require data, not emotional arguments, to ensure accuracy and fairness.
Mining companies perform many activities beyond just digging up minerals. They conduct exploration, develop mines, buy equipment, and use engineering services. They also handle logistics, pay workers, meet community duties, and manage financial risks. Mr Boakye insists any proper assessment of Ghana's mining benefits must trace this entire value chain. It must identify how much of this economic activity stays in Ghana.
Mr Boakye highlighted a significant change in Ghana's mining industry over the last two decades. More Ghanaians now hold key operational, management, and technical roles. He observed, “If we enter a mine today, you may struggle to see a white person there because Ghanaians are now operating and managing many of these assets.” This development shows increasing local capacity within the sector.
Claims that Ghana does not benefit enough from mining might be true in some areas. However, these claims need proof through measurable indicators. Such indicators include employment figures and the ratio of local procurement. They also include Ghanaian ownership in supplier companies and value retained by domestic contractors. Taxes paid, royalties distributed, and community investments are also crucial. Data on Ghanaian firms building capacity from mining contracts further informs this assessment.
The key question, according to Mr Boakye, is whether mining creates a deeper economic base locally. He challenged government agencies and regulators to track how mining revenues circulate. This tracing should focus particularly on procurement and contracting. It means identifying which local firms get mining contracts and where they source their supplies. It also involves checking if Ghanaian suppliers are developing manufacturing or technical capabilities. Furthermore, it should confirm if money earned from mining services stays in the country.
Mr Boakye also questioned whether some companies classified as local suppliers truly create domestic value. Some may simply import products from outside Ghana and resell them to mining companies. This distinction is vital because local content must be more than just a formality. If a Ghanaian-owned company only imports mining inputs without developing local production or engineering, Ghana might still lose much of the claimed value. This points to a weakness in Ghana’s local content policy, where ownership alone is insufficient.
Gold remains a major source of export earnings, government revenue, and foreign exchange for Ghana. Yet mining communities often complain about poor infrastructure and environmental damage. They also cite unemployment and limited transformation despite decades of mineral extraction. Mr Boakye stressed that addressing these contradictions needs clear, data-driven policies. The government must lead an informed public conversation on mining reforms and local participation. This includes articulating its policy direction on resource nationalism.