Although Ghana’s mining sector is the largest contributor to the government revenue, it is emerging that the country can generate more if special focus is given to the creation of value along the mining industry value chain.
The Chamber of Mines believes that the government’s overemphasis on mining revenues is just scratching the surface of the potential of the industry if value retention is taken seriously.
President of the Chamber and Vice President of Gold Fields West Africa, Michael Edem Akafia, who was interacting with some fellows of the Africa Extractives Media Fellowship (AEMF), maintained that headline revenues mask a deeper problem for the country.
For hum, much of the value created by mining does not stay in the country. In 2024 alone, Gold Fields returned about $5 billion to Ghana. Yet, Michael Edem Akafia explains, a large share of that money was spent on goods and services that were imported, meaning the funds quickly left the economy.
The Irony of Local Content That Is Still Imported
Michael Edem Akafia bemoaned that Ghana’s local content laws require mining companies to award contracts to Ghanaian businesses. However, the real but uncomfortable irony is that many of these businesses are Ghanaian only by registration, while the goods they supply are imported.
As a result, contracts technically comply with the law, but real value retention remains minimal.
The economy gains little beyond wages and limited local services, while foreign suppliers capture most of the value.
“They say we must appoint or award contracts to Ghanaian businesses. But those Ghanaian businesses, they are Ghanaian businesses 100% because the law says so, but they are imported. So if they’re imported, that money is going again,” he revealed.
Why Tarkwa and Obuasi Look Different from Johannesburg
To illustrate the impact of the situation, the President of the Chamber compared Ghana’s mining towns with South Africa’s mining ecosystem. He recounted that in South Africa, most major mining inputs are produced locally, supporting manufacturing, skills development, and industrial growth.
However, the contrast is the case in Ghana. Unpleasantly, almost all key mining inputs are imported. This explains why decades of mining in Tarkwa and Obuasi have not produced the same industrial transformation seen in Johannesburg.
“The biggest difference between Tarkwa, Obuasi and Johannesburg is that if you look at the mining industry in South Africa, almost all the big inputs are made there. If you look at our industry, almost all the big inputs are imported,” he noted.
Unlocking Value Along the Mining Value Chain
The Chamber of Mines believes the solution lies in unlocking value along the entire mining value chain, rather than focusing narrowly on mining revenues.
According to the Vice President of Gold Fields, greater economic transformation will come from producing what mines consume. He maintains that inputs such as chemicals, equipment, consumables, and services must be produced within Ghana. This approach, he said, offers far greater and more sustainable benefits than extraction alone.
As a starting point, the Chamber has identified “low-hanging fruit” inputs that can realistically be manufactured locally. These include caustic soda and activated carbon, both heavily used in mining operations. Producing such inputs locally would reduce imports, retain foreign exchange, create jobs, and deepen Ghana’s industrial base.
To demonstrate the feasibility and the value of this value creation, he used the high-visibility safety uniforms worn by mine workers to prove a point. These uniforms worn by mine workers are currently imported at an average cost of $55 per piece. With around 6,000 employees, the import bill is substantial.
Yet these uniforms could easily be manufactured in Ghana. A local producer would not only serve the mining sector but could also supply organisations such as the Volta River Authority, construction firms, and other industries that require safety apparel. This would create businesses with a life beyond mining.
More Value Beyond the Mine Gate
While mining revenues may appear large, Michael Edem Akafia noted that operating costs are also high, leaving relatively thin margins. Much of this expenditure goes into imports, limiting the sector’s broader economic impact.
Local manufacturing and services, on the other hand, offer more durable income, jobs, and skills, creating economic activity that outlives individual mines.
To further drive the point home, Edem Akafia referenced the California Gold Rush, where it is often said that those who sold tools and shovels made more money than the miners themselves. The lesson, he said, is that the real wealth lies along the value chain, not just in extracting the resource.
A Call for a Shift in National Thinking
For Ghana to truly reap the full benefits of mining, the Chamber of Mines believes the country must shift its focus from celebrating export earnings and royalties to building industries that support mining.
By retaining value locally, Ghana can transform mining from a purely extractive activity into a foundation for long-term industrialisation, job creation, and economic resilience.
