Ghana's Natural Resources: A Call for Local Ownership and Sustainability

Strategic Insights -

The Institute of Economic Affairs (IEA) in Ghana has expressed disappointment over the government's lack of commitment to reclaiming ownership of the country's natural resources, particularly in the mining sector. The IEA has been advocating for a complete halt to foreign entities controlling Ghana's mineral wealth, citing the country's inability to realize meaningful economic transformation from its mineral wealth despite engaging foreign entities in commercial mining for over a century. This lack of commitment has resulted in a missed opportunity, according to the IEA, as the government recently renewed mining leases for three companies, including Newmont Golden Ridge Ltd, Gateway Exploration Ltd, and GBF Associates Ghana Ltd.

Key Takeaways:

  • The IEA has called on the government to boldly assume ownership of Ghana's natural resources and channel them towards sustainable development, rather than relying on foreign entities.
  • Ghana's inability to realize meaningful economic transformation from its mineral wealth is evident in the country's low revenue from the mining sector, with estimated government receipts totalling only USD 2.3 billion in 2024, less than 20% of the export value.
  • The country's economic challenges are largely driven by its inability to raise sufficient domestic revenue to finance development, leading to recurring economic crises since independence.
  • Past policy prescriptions from the International Monetary Fund (IMF) and World Bank have yielded limited results and deepened Ghana's dependence on external assistance.
  • The IEA has identified a need for a comprehensive review of Ghana's Minerals and Mining Act, 2006 (Act 703), and the Petroleum (Exploration and Production) Act, 2016 (Act 919), to ensure full local ownership and the accrual of benefits to the nation.
  • The call for Ghana to own its natural resources is supported by United Nations General Assembly Resolution 1803 (1962), Resolution 3281 (1974), the African Charter on Human and Peoples' Rights, and other protocols.

Statistics:

  • Ghana's total gold exports in 2024 amounted to USD 11.6 billion.
  • Estimated government receipts from gold exports in 2024 totalled only USD 2.3 billion, less than 20% of the export value.
  • The 2025 Mid-Year Budget Review revealed that total revenue and grants underperformed by 3.2% relative to target.

Sources:

  • Ghana Web, September 13, 2025
  • International Monetary Fund (IMF)
  • World Bank
  • United Nations General Assembly Resolution 1803 (1962)
  • United Nations General Assembly Resolution 3281 (1974)
  • African Charter on Human and Peoples' Rights