Accra: The Institute of Economic Affairs (IEA) has called on government to stop renewing mining leases for foreign companies and reset the sector in favour of full local ownership to maximise national benefits.
According to Ghana News Agency, the Institute expressed its disappointment with the renewal of three mining leases-Newmont Golden Ridge Ltd., Gateway Exploration Ltd, and GBF Associates Ghana Ltd-without any plan for a Ghanaian takeover. While it welcomed Parliament's decision to ratify a 12-month non-renewable lease for Abosso Goldfields Limited as a transitional measure for the Damang Mine, the IEA criticized the missed opportunity to reclaim ownership of natural resources for sustainable development. Dr. Eric Oduro Osae, a Fellow at the IEA, emphasized that Ghana's mineral wealth has yet to translate into meaningful economic transformation.
Dr. Osae highlighted that in 2024, Ghana exported gold worth USD 11.6 billion, yet government revenues from the sector were only USD 2.3 billion, less than 20 percent of the total value. He warned that without urgent reforms, Ghana risks facing another debt crisis by 2027 when bond repayments become due under the Domestic Debt Exchange.
The IEA urged the government to conduct a comprehensive review of laws governing the mining sector to ensure stronger national control and benefits. Dr. Osae advocated for a policy shift that would restrict future leases to local ownership and prevent the granting or renewal of mining leases to foreign entities. He suggested developing a transition framework for Ghanaian control, inspired by South Africa's Black Economic Empowerment programme.
Furthermore, he recommended limiting the foreign role to service contracts while ensuring that ownership and revenues remain with Ghanaian companies. He stressed the importance of planning for timely transitions to local ownership, cautioning against lease extensions justified by 'transition needs' or job security concerns.
Dr. Osae underscored the significance of Ghana's natural resources, urging that they be mined responsibly, processed locally, and sold as finished products to bolster foreign exchange earnings and stabilize the cedi. With several mining leases set to expire within the next three years, he noted that this presents a golden opportunity to realign the sector with the government's economic transformation agenda and the 24-hour economy programme.