Ghana’s mining sector is not providing enough financial benefits to the public treasury, according to economist Dr. Adu Owusu Sarkodie. The country must adopt a more strategic management approach for its extractive industries.
Dr. Sarkodie stated these views at a recent JoyBusiness Roundtable discussion. He warned that current fiscal gains from mining do not properly show the sector’s overall size and contribution to the economy. This situation makes it essential for policymakers to review existing strategies for mining gold, oil, and critical minerals.
This issue fits into a broader national conversation about Ghana’s economic independence and resource management. Ghana has long relied on its rich natural resources, including gold, oil, and cocoa, to drive economic growth. However, concerns about the equitable distribution of wealth and the long-term sustainability of these sectors persist. Past data has often shown significant foreign direct investment in the mining sector, but questions remain about effective revenue capture.
Dr. Adu Owusu Sarkodie specifically highlighted the need for tactical reforms. He said, “The mining sector is contributing a little to public finance and whatever we have to do, we have to be tactical so the contribution of the mining sector to public finance will be more than what we see now.” His comments underline a critical area for policy intervention.
Moving forward, reforms must be carefully crafted to improve how the state captures value from its resources. These reforms must also ensure that Ghana remains an attractive destination for investors. Increasing returns from mining will require deliberate policy choices. These choices will strengthen revenue collection efforts and deepen value retention within the country. This will mean Ghana benefits more directly from its natural wealth.
This discussion occurred during the JoyBusiness Roundtable titled “To Nationalise or Transform: Rethinking Ghana’s Approach to Gold Mining, Oil and Critical Minerals.” The event aimed to shape the future of Ghana's extractive industry model. Stakeholders will watch for government responses to these calls for increased state revenue from mining.
The Ghana Chamber of Mines, for instance, has previously rejected calls by the Institute for Economic Affairs (IEA) to nationalise mines. This shows diverse opinions on the best way forward. Any policy changes will likely impact both local and international mining companies operating in Ghana. The goal is to ensure Ghana receives a fairer share of the profits from its valuable natural resources. This strategic shift could significantly boost public finances and support national development goals.