Ghana needs to make industrialisation a mandatory condition for renewing mining leases. Resource and Industry Expert Gideon Ayi Owoo voiced this call on JoyBusiness Roundtable. He is a key figure at Deloitte Africa. The government must create clear rules for these renewals. This will ensure fairness for all mining companies.
Mr. Owoo stressed that if Ghana wants real industrialisation, it must be a core part of mining deals. Companies must know these expectations upfront. This includes specific targets for local manufacturing. "Put it on paper," he advised the government. This approach will create certainty in the mining sector.
Currently, Ghana struggles to fully benefit from its vast mineral wealth. This situation impacts national development and job creation. Linking industrialisation to mining contracts can help Ghana process more of its raw materials locally. This is crucial for economic growth. Prior mining agreements have not always delivered this benefit effectively.
According to Mr. Owoo, companies that fail to meet these industrialisation targets should not expect lease renewals. "Nobody is going to argue," he stated. This clarity protects Ghana's interests. It also encourages companies to invest in local processing. He mentioned that new operators often inherit difficult, less profitable mining phases, creating challenges.
The expert also advocated for greater Ghanaian ownership in the mining sector. He suggested using the stock market. Domestic institutional investors like pension funds could play a larger role. "Can they be included?" he asked. Strengthening local content policies is also vital. This ensures Ghanaians gain more from their own resources.
This call comes as Ghana seeks to diversify its economy beyond raw material exports. The mining sector is a significant contributor to foreign exchange earnings. However, the potential for job creation and manufacturing growth remains largely untapped in many areas. Clearer contract terms could unlock this potential.