Gideon Ayi-Owoo, West Africa Deputy Lead for Energy Resources and Industry at Deloitte, has called for clear policy guidelines governing local participation and license renewals in Ghana’s extractive sector.
Policy uncertainty threatens future investments and state revenues, according to Mr Ayi-Owoo. He made these remarks during the Joy Business Roundtable Discussion. This discussion was themed “To Nationalise or Transform? Rethinking Ghana’s Approach to Mining, Oil and Critical Minerals.”
This call comes as public debate intensifies regarding state ownership of Ghana's natural resources. Ghanaians are demanding greater economic benefits from the nation's abundant natural wealth. In response, the government has explored stricter resource nationalism policies. This has raised concerns among foreign investors about sudden regulatory shifts. Such shifts could harm long-term financial commitments to Ghana.
Mr Ayi-Owoo emphasized the crucial need for transparent policies. These policies must balance national ambitions with attracting investor confidence. He stated, “We need clear guidelines under what conditions government will renew guidelines or not renew any mining licences. Uncertainty could affect investment in the future.” He is also a Tax Partner at Deloitte, bringing significant expertise to this area.
Unpredictability could also force mid-level mining companies to change their investment strategies. They might shift to focusing only on high-margin, easily accessible gold deposits. This approach could lead them to abandon more complex exploration projects. A defensive approach like this would leave vast mineral wealth untapped. Ultimately, this would reduce state revenues in the medium to long term. Mr Ayi-Owoo noted, “I am saying this because of the impact it could have on government’s revenue tick.”
He further advocated for a stronger policy approach to drive industrialisation within Ghana’s extractive sector. Mr Ayi-Owoo highlighted the importance of including industrial development in mining agreements. This inclusion is crucial for transforming mere extractive exploration into impactful industrial expansions. Such expansions would benefit the entire mining sector and the broader economy. He concluded, “Mining contracts should go beyond extraction and revenue generation to include clear commitments that promote local industrial growth and value creation.”