Former Chief Justice and Distinguished Fellow of the Institute of Economic Affairs (IEA), Sophia Akuffo, is making a case for a reassessment of mining policies to ensure the nation derives greater economic value from its resources.
She contends that the country has often cited lack of technical expertise to effectively exploit its natural resources, leading to agreements that disproportionately benefit foreign companies while Ghana receives minimal returns.
She made these remarks at a press conference on Maximizing the Benefits of Ghana’s Natural Resources, where she called for a temporary suspension of mining activities in Ghana.
“These days, you will read or hear in the international news space so many different formulations of other countries that are also waking up are coming up with. Malawi announced something but we haven’t really studied it so we have not included it. But the mineral is yours or ours and if at present, it wouldn’t be of maximum benefit, then for goodness sake let it remain under the ground till we have the proper framework that will assure of good returns of not less than 60% although 100% is also possible,” Justice Sophia Akuffo said.
The distinguished fellow of IEA cited other countries in and outside Africa to buttress her point, highlighting the need for reforms that inures to the benefit of the country in accelerating economic development.
“In Eritrea, under Article 41 of the Mining Law Proclamation, Government is entitled to equity participation not exceeding a total of 40%, including a participation interest of 10% of any mining investment.
“Ghana can learn from the foregoing best practices. The IEA is of the view that the time has come for Ghana to end its colonial-type contracts skewed in favour of foreign companies and adopt modern best practices, which provide a fair share of the resource rent to the country rather than foreign mining firms,” she added.
