Ghana must increase its control over the mining sector. However, it should not do this with sudden policy changes. This warning comes from Kenneth Ashigbey, the CEO of the Ghana Chamber of Mines. He believes that abrupt shifts can harm investor trust.
Ashigbey agrees with calls to expand local participation in mining. He spoke on JoyNews' Newsfile program on May 16. He says policy changes need good data and should consider history. The Institute of Economic Affairs (IEA) has also made calls for greater Ghanaian control. Ashigbey noted that the IEA's recent proposal lacked sufficient data and historical context.
The mining sector in Ghana has transformed significantly. It has moved from being mostly controlled by foreigners. Now, many Ghanaians are involved in operations, contracting, and management. Local firms are even expanding their reach into other African countries. This shows a growing Ghanaian presence beyond Ghana's borders.
However, mining is a very expensive industry. It requires vast amounts of money. Full local ownership or rapid takeovers are not realistic. This is because they need huge investments. Local banks alone cannot provide this level of capital. For example, projects like the Ahafo mine, run by Newmont Corporation, needed billions of dollars in investment. Ashigbey questioned how many Ghanaian banks could finance such projects.
Ashigbey cautioned against disrupting existing policies. He stressed that Ghana needs to strengthen local ownership gradually. He also warned against plans to aggressively take over mining leases. Ghana's laws, like the Minerals and Mining Act (Act 703), have rules for lease renewals. They also protect investor rights. Investor confidence relies on stable laws. Predictable rules are also very important. Sudden policy changes can make investors leave.
Ashigbey stated that changing rules in the middle of processes scares investors. While he supports more Ghanaian involvement, he calls for teamwork. Policymakers, industry players, and research groups should work together. This ensures reforms are based on facts and a long-term economic plan. The mining sector is a significant part of Ghana's economy, contributing to export earnings and government revenue. Maintaining its health is crucial for national development and economic stability.