Amid growing recognition of capital constraints limiting Ghana’s mining sector growth, industry stakeholders at the West Africa Mining and Power Exhibition (WAMPEX) 2025 have proposed the creation of a dedicated financial institution to mobilize investment specifically for the extractive industries.
Michael Akafia, President of the Ghana Chamber of Mines and Vice President for External Affairs Gold Fields West Africa, told The High Street Journal that while Ghana boasts a skilled workforce and strong local participation, the sector continues to face challenges in accessing the long-term, high-risk capital necessary for mining projects.
“Capital formation is relatively low in our jurisdiction because already you have relatively lower disposable income, and therefore relatively lower savings rates compared to even peers in the sub-region,” Akafia explained. “So, what that means is that it translates into lower capital formation for big ticketing. And then for mining, as you know, it is capital-intensive, long-term in nature, and high-risk, so relatively high-risk.”
To address this funding gap, discussions at WAMPEX have focused on replicating models from other sectors, such as energy and petroleum, where specialized development finance institutions support capital mobilization. Akafia revealed to The High Street Journal that one key proposal is the establishment of an Extractive Industry Bank, a financial entity focused exclusively on raising and deploying capital to meet the extractive sector’s unique needs.
“One of the propositions was to see if that could not be repurposed as an extractive industry bank, which would then focus on raising capital to address the particular needs of the industry,” he said.
Such a bank would be designed to provide financing solutions tailored to mining’s capital-intensive and high-risk profile, potentially attracting both local and international investors by offering specialized products and risk mitigation mechanisms.
Experts believe this could unlock critical funding for exploration and development projects that currently struggle to secure adequate investment. Without this, Ghana risks losing out on new mining ventures to neighboring countries with more investor-friendly financial environments.
“The challenge is how to create innovative funding structures that bridge the gap between capital supply and the sector’s long-term needs,” Akafia noted. “This could be a game-changer for the sustainability and growth of mining in Ghana.”
The proposal aligns with broader industry goals to enhance local content and participation by enabling greater domestic investment in mining ventures, thus fostering inclusive economic growth.
While still in the conceptual stage, the idea of an Extractive Industry Bank reflects growing awareness that conventional financial institutions may not fully meet the sector’s complex financing demands.
