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Mining in Ghana - What future can we expect

The assignment

With the ability to kick-start private sector development, the Ghanaian mining sector has not yet fully realised this potential. ICMM and the Ghana Chamber of Mines therefore requested Steward Redqueen and the African Center for Economic Transformation to analyse the sector’s socio-economic contribution and to identify ways to enhance it.   

The solution

Based on life-cycle data made available by seven mines in Ghana, the report shows the socio-economic contributions of mining over the period 2010-2022. In addition, to inform current and future policy debates on mining’s contribution to social and economic development we examined different scenarios: a decline in the projected gold price, an increase in the royalty regime and an increase of local sourcing by the seven mining companies. 

The benefits

The report provides comprehensive insights into the role the mining sector can play in resource-based development in Ghana. In particular, it empirically demonstrates the effects of local purchases of the sector. Thus, the findings not only highlight the direct benefits of mining but also quantify the numerous spill-over effects, leading to increased economic activity and the creation of wealth. Depending on the willingness of policy makers to implement the study’s recommendations, this outcome is ultimately expected to enhance the well-being of the population.

To further a collaborative multi-stakeholder approach, stakeholders had the opportunity to comment on the findings. Their feedback has been incorporated into the report. Looking ahead, the Ghana Chamber of Mines and its stakeholders will draw on the findings to enrich the policy dialogue. Ultimately, these outcomes will help the Ghanaian mining sector fulfil its potential to kick-start private sector development. 

The report can be found here

I am confident that every reader would find this report, which is a good blend of academia and industry, exciting and insightful. No doubt, it would have far-reaching positive impact on the sector’s policy landscape and engagements among stakeholders.
Sulemanu Koney
Chief Executive Officer, Ghana Chamber of Mines