Ghana must accelerate investment in local mineral processing to retain more value from its natural resources, strengthen foreign exchange earnings and create jobs as access to concessional development financing becomes increasingly constrained.
Presidential Advisor on the Economy, Mr Seth Terkper, said exporting raw minerals deprived the country of opportunities to generate higher economic returns through industrial production, manufacturing and value-added exports.
He said the mining sector needed to become a stronger driver of domestic industrialisation rather than remain largely focused on extracting and exporting mineral resources.
Mr Terkper, a former Minister of Finance, made the remarks at the China-Ghana Mining Cooperation Conference 2026 in Accra, where he represented the Chief of Staff.
The conference was held under the theme, “Innovation-Driven, Win-Win Cooperation, Advancing High-Quality China-Ghana Mining Cooperation.”
He said Ghana needed to assess the future of its mining industry within the broader macroeconomic environment, particularly as the country transitioned towards middle-income status and faced changing conditions in accessing international development financing.
According to him, countries attaining middle-income status gradually lose access to grants and concessional financing, making domestic revenue mobilisation, industrial production and export earnings increasingly important for sustaining development.
He noted that grants, which previously accounted for about 5% of Ghana’s revenue, had declined to approximately 2% or less, while the country increasingly relied on developing its domestic debt market to meet financing requirements.
Against this background, he said Ghana needed to extract greater economic value from its mineral resources to finance development and reduce pressure on public finances.
Mr Terkper also raised concerns about the fiscal implications of incentives granted to mining companies, including tax holidays and other concessions, urging the government to ensure that the economic benefits generated by mineral exports justified the revenue forgone.
He identified gold smuggling through unofficial export channels as another challenge, noting that such activities deprived the country of revenue and foreign exchange that could otherwise strengthen its external position.
He said expanding domestic processing capacity would allow Ghana to retain a greater share of the value generated from mineral production.
“Because we are able to generate a higher value. And this must not just be seen in the context of mining, but it must be seen across all the sectors of the economy,” he said.
He further called for appropriate financing mechanisms to support local industries involved in processing and exporting value-added products.
He cited the establishment of the Export-Import Bank (EXIM Bank) as an important intervention to provide financing for businesses seeking to expand exports beyond raw materials.
Mr Terkper urged the Association of China-Ghana Mining (ACGM) to approach mining cooperation within a broader national and continental development framework that prioritised industrialisation, environmental protection and economic transformation.
Director of Mines at the Ministry of Lands and Natural Resources, Mr Kwame Ahumah, said Ghana needed to strengthen the linkages between mining and manufacturing by moving beyond the export of unprocessed minerals.
He said the government was pursuing policy and legal reforms to promote domestic processing and refining across the gold, bauxite, aluminium, iron and lithium sectors.
These initiatives are intended to develop integrated mineral value chains, including local refining, aluminium production and opportunities for battery manufacturing.
Mr Ahumah said Ghana was seeking investments that would establish processing plants, develop local supply chains, facilitate technology transfer and create employment.
He identified opportunities for Chinese investors in gold refining, bauxite and aluminium production, lithium processing, geological exploration and green mining technologies.
Chief Executive Officer of the Minerals Commission, Mr Isaac Andrews Tandoh, said Chinese capital, technology and expertise had contributed significantly to Ghana’s emergence as Africa’s leading gold producer.
However, he stressed that mining partnerships must be guided by transparency, sustainability, regulatory compliance and equitable economic benefits for Ghanaians.
He warned that illegal mining, particularly activities involving foreign nationals, continued to threaten water bodies, forest reserves and national security.
Mr Tandoh called for stronger collaboration between Chinese authorities and Ghanaian security and regulatory agencies to dismantle the financial and logistical networks supporting illegal mining.
He said the Minerals Commission remained committed to working with investors who respected Ghana’s laws, protected the environment and supported local content objectives.
He added that Ghana welcomed responsible Chinese investment capable of creating decent jobs, strengthening local industries and ensuring that mineral wealth benefited host communities.
Chinese Ambassador to Ghana, Mr Cong Song, reaffirmed China’s commitment to strengthening mining cooperation with Ghana through technology transfer, industrial value addition and skills development.
He said Chinese mining companies operating in Ghana were contributing to technological advancement, local employment, community development and improved operational efficiency.
Mr Cong said China’s approach to mining cooperation with Africa prioritised mutual benefits, high-quality development and the expansion of local processing capacity.
He expressed China’s readiness to collaborate with Ghana across the mining value chain, including geological exploration, local processing, industrial value addition and skills development.
He also reaffirmed that Chinese citizens and companies operating in Ghana were expected to comply with the country’s laws and regulations, prioritise occupational safety and environmental protection, respect local customs and fulfil their social responsibilities.
