The Institute of Economic Affairs (IEA) has called on government to stop renewing commercial mining leases for foreign companies, urging a decisive shift toward Ghanaian ownership of the country’s mineral resources.
Speaking at a press conference in Accra, IEA Founder and Chairman, Dr. Charles Mensa, said the impending expiry of several major mining leases within the next three years presented a “golden opportunity” to reset the sector in line with the government’s promise of economic transformation.
“We cannot continue to renew colonial-era contracts that deprive Ghanaians of the full value of their own resources. The government must take decisive steps now to ensure that mining wealth benefits the nation rather than foreign shareholders,” Dr. Mensa stressed.
Transition Framework Needed
The IEA proposed that the state should restrict foreign involvement to short-term service contracts rather than ownership stakes.
According to Dr. Mensa, Ghana possesses sufficient technical and managerial expertise to manage large-scale mining operations, and local investors can mobilize the capital needed if provided with supportive policies.
The think tank urged the Minerals Commission to issue early notices to foreign operators with expiring leases to allow transparent and orderly transitions.
It specifically referenced the Damang Mine, stressing that new leases should be reserved exclusively for Ghanaian investors.
The IEA also cited South Africa’s Black Economic Empowerment model as an example Ghana could draw lessons from, where local participation in mining has significantly increased state revenues.
In 2024, Ghana exported US$11.6 billion worth of gold but received only US$2.3 billion in fiscal revenues, less than 20 percent of export value.
Out of 24 large-scale mines, only three are locally owned, while 19 are foreign-controlled, according to the Ghana Chamber of Mines.
The IEA criticised the recent renewal of leases for Newmont Golden Ridge, Gateway Exploration Limited, and GBF Associates Ghana Limited, noting that no plans were made to transition these operations to local control.
By contrast, Parliament’s ratification of a one-year renewable lease for Abosso Goldfields was welcomed as a transitional step.
The think tank also argued that stronger control of mining resources could help Ghana reduce reliance on external borrowing and IMF programmes. Since independence, Ghana has entered 18 IMF bailouts, largely due to weak domestic revenue mobilisation.
“With major bond repayments looming from 2027, the mining sector must become a pillar of foreign exchange stability. Ghana cannot continue mortgaging its future to outsiders,” Dr. Mensa said.
The IEA urged the government to develop a comprehensive transition framework to ensure Ghanaians benefit fully from their natural resources, insisting that foreign capital is not indispensable.
“It is possible for Ghanaians to mobilise the needed capital for commercial mining through local banks and financial institutions. The notion that only foreigners can commit the kind of resources required is misleading,” Dr. Mensa said.
