Accra: Dr Charles Mensa, the Chairman of the Institute of Economic Affairs (IEA), has urged the government to reorient Ghana's mining policy by granting leases to local companies instead of foreign firms. He noted that such a shift was critical to maximising the country's gains from its natural resources.
According to Ghana News Agency, Dr Mensa highlighted that Ghana's mining sector had for decades been dominated by foreign multinationals, whose operations were largely extractive in nature. These companies, he said, exported minerals in their raw form, repatriated profits abroad, and left Ghana with minimal returns in the form of royalties and taxes.
Dr Mensa emphasized the importance of placing Ghanaians at the heart of the mining sector. By granting leases to indigenous firms and supporting them to add value, he argued that the country could create jobs, strengthen industries, and ensure that natural resources drive national prosperity. He made these remarks at a media engagement on Thursday in Accra.
He explained that local companies, when empowered with the right financing, technology, and regulatory support, could set up processing plants to refine gold, bauxite, manganese, and lithium in Ghana. This approach would not only boost domestic industries but also significantly increase revenue generation for the state.
Dr Mensa criticized the current concession agreements that provide exclusive rights to foreign firms, allowing them to retain a disproportionately high share of the output while paying minimal royalties and taxes. He stated that these agreements perpetuate dependency instead of empowering Ghanaians.
Dr Mensa praised the recent decision to grant mining leases to E and P as a positive development, demonstrating that local investors have both the capacity and commitment to manage large-scale operations responsibly. He noted that the performance of some local firms recently awarded leases proves that Ghanaians can operate effectively in this sector.
He further stressed that local companies need opportunities, fair terms, and the right policies to thrive. The economic benefits would be significantly greater if more leases were awarded to local firms. Dr Mensa expressed confidence that a deliberate focus on local ownership and beneficiation could alter the current trajectory.
He urged the government to review existing mining laws, renegotiate unfavourable contracts, and design incentives for indigenous firms to scale up their operations. Despite being Africa's leading gold producer with significant deposits of bauxite, manganese, and newly-discovered lithium, Ghana has not effectively leveraged these resources for industrialisation, as most continue to be exported in raw form.
