Ghana must carefully plan to increase state ownership in its mining industry. A rushed nationalisation could destabilise the sector. Dr. Adu Owusu-Sarkodie from the Centre for Policy Scrutiny made these remarks recently.
He spoke at a JoyBusiness Roundtable event. The discussion focused on rethinking Ghana's approach to gold, oil, and critical minerals. Dr. Owusu-Sarkodie highlighted the vital role of natural resources. Gold production alone brought in about US$21 billion in 2024. This was around 67% of Ghana's total exports. This figure is roughly GHS 264 billion. It surpassed government revenue and grants by nearly GHS 40 billion. Mining is central to sustaining Ghana's economy. Mineral royalties reached GHS 5.2 billion in 2024. This amount is more than abolished taxes like the e-levy.
Ghana is Africa's top gold producer. It ranks sixth globally. The country produces 130 to 150 tonnes of gold yearly. This is similar to Kazakhstan. Despite this output, Dr. Owusu-Sarkodie is concerned. He noted the mining sector's low contribution to public revenue. He questioned how Ghana could gain more from its minerals. Research from the Institute for Fiscal Studies is relevant. It estimated Ghana's economic rent from mining between 2011 and 2018 at US$43 billion. The government received only US$4.5 billion of this. That is about 10.4%. This shows a significant gap in captured value.
Dr. Owusu-Sarkodie acknowledged mining's high risks and costs. However, he stressed its large profit potential. Ghana needs to structure its involvement better to capture more value. He warned against breaking existing concessionary agreements suddenly. Full nationalisation could lead to instability. Instead, he proposed a gradual, strategic transition. Radical policy changes could be risky due to many mining firms in Ghana. Ghana may have made past policy errors. These might have limited state participation in profitable sectors.
He pointed to international examples. Countries like Norway, Qatar, and Botswana have stronger state participation. Mining contracts typically include service contracts or production-sharing agreements. Ghana has mostly used concessionary arrangements. This model offers less state ownership. Other models allow for greater national control and revenue retention. Dr. Owusu-Sarkodie advised a careful reassessment. Ghana must be strategic to benefit more from its minerals.