As the debate over the calls for improved local participation in Ghana’s extractive sector deepens, there is an emerging distinction between the two systems of ownership and the gaps and loopholes that need to be fixed.
The concern is about how the two systems of ownership within the extractive space are run.
Amid the deepened conversation, the Ghana Mine Workers Union is drawing a clear line between foreign mining firms and locally owned companies, highlighting deep gaps in corporate governance, worker welfare, and compliance, and calling for urgent reforms.
At the center of this conversation is the General Secretary, Abdul-Moomin Gbana, who says the issue is no longer just about increasing local participation, but ensuring that Ghanaian businesses are structured to deliver long-term value.
A Tale of Two Systems
According to Abdul Moomin, multinational mining companies operating in Ghana have largely built systems that enforce discipline and accountability. Their taxes, he says, are often paid on time.
Moreover, statutory obligations, such as social security and provident fund contributions, are treated as non-negotiable. Workers, in many cases, operate within clearly defined structures.
For the foreign-owned, defaulting comes at a cost.
However, the same cannot always be said for many local enterprises.
Gbana points to a troubling pattern where Ghanaian-owned companies often operate with weak governance frameworks, where decision-making is concentrated in the hands of individuals rather than institutions; a situation he describes as a “one-man show”.
For experts, this approach may offer flexibility, but it often undermines sustainability and accountability.
The Cost of Weak Governance
This corporate governance gap is not just a boardroom issue; it has real consequences.
Gbana narrates that workers may face inconsistent benefits. Statutory payments can be delayed or ignored. Financial decisions may lack transparency. And ultimately, the broader economy loses out when businesses fail to operate within structured, compliant systems.
Even when such businesses survive, Gbana argues, they rarely deliver widespread benefits. Such a situation, he says, doesn’t serve the greater good.
Just Local Ownership Is Not Enough
For the Union, it fully supports the push for greater Ghanaian ownership in the mining sector. But ownership without structure, it warns, is a missed opportunity.
For local companies to truly compete and to replace multinationals effectively, they must adopt the same rigor that has sustained foreign firms.
This means establishing proper corporate governance systems, building independent and functional management structures, ensuring full compliance with tax and labour laws, and pprioritizing transparency and accountability.
A Call for a Mindset Shift
Beyond systems and structures, the Union believes the challenge is also cultural.
Work ethics, attitudes toward compliance, and the way businesses treat employees all need to evolve. The informal, personality-driven approach to enterprise must give way to institutional discipline.
This is where the real reform lies, not just in policy, but in mindset.
As Ghana positions itself to deepen local participation in its extractive industries, the stakes are high. The transition presents a unique opportunity to redefine how local mining businesses operate.
