As Ghana inches closer to the Ewoyaa Lithium Deal renegotiation, the Natural Resource Governance Institute (NRGI) is calling on the government to prioritize guarding its stake in the project.
The Institute says that the government should not leave the deal open for its interests to be diluted.
Denis Gyeyir, Country Manager of the Natural Resource Governance Institute (NRGI), is urging government negotiators to take a hard look at a quiet, technical threat that could silently drain the country’s future lithium revenues.
In an interaction with The High Street Journal, the country manager explained that under the current arrangement, Ghana is expected to hold an 18% stake in Atlantic Lithium’s local operations, with other state-backed investors like the Minerals Income Investment Fund (MIIF) holding additional shares.
But Gyeyir says that shareholding could shrink overnight if the company decides to float more shares or court more private investors.
“We should also take into account some of the causes of leakage around our tax system. For instance, the issue of dilution. So, for instance, the government has 18% interest. MIF also has some 6% interest and all of that. But what if many other investors inject capital into Atlantic? That will further dilute and bring down the interest holding of the government automatically,” he indicated.
This means if Atlantic Lithium raises more capital, Ghana’s slice of the lithium pie could get smaller, without any say from the government.
Although it is legal, it could potentially lead to the country’s share in the project dwindling, resulting in significant revenue loss.
Gyeyir argues that the government must go beyond just signing a good deal. For him, the government must future-proof its stake. This means inserting clauses in the final agreement that protect Ghana from any future decisions by the company that could reduce its revenue streams.
“Beyond these negotiations, the government should seek to insulate itself. It should guard itself against some of these potential revenue leakages that can happen. Just because Atlantic Lithium has decided to invite or float more shares, to raise capital, and all of that, there are measures that the company can take that will reduce government revenues,” he recounted.
He added that, “The government, through these negotiations, must put in clauses that prevent the company from making decisions that affect its revenue streams.”
For him, this is not just about technicalities; it’s about sovereignty over a critical national resource.
With global competition for lithium heating up and innovations threatening its long-term dominance, Ghana must secure every ounce of value it can today. The time to protect the public interest is now, not after the damage is done.
