Ghana, a nation historically rich in gold and other minerals for over a century, and more recently an emerging player in commercial petroleum production and critical minerals like lithium, is currently grappling with a fundamental question: how to ensure its vast extractive wealth genuinely benefits its citizens. This pressing issue was the central theme of the JoyBusiness Roundtable discussion, "To Nationalise or Transform: Rethinking Ghana’s Approach to Gold Mining, Oil and Critical Minerals," held on Tuesday, May 26, bringing together a diverse array of industry experts, policymakers, academics, and governance leaders.

Economist Dr. Adu Owusu Sarkodie, Executive Director of the Centre for Policy Scrutiny, highlighted a critical concern: Ghana is not receiving sufficient public finance returns from its mining sector. Despite gold production alone generating an estimated US$21 billion (approximately GH¢264 billion) in 2024, significantly exceeding government revenue and grants, the contribution to public finance remains relatively low. Dr. Sarkodie cited research by the Institute for Fiscal Studies, indicating that between 2011 and 2018, Ghana's economic rent from mining was estimated at US$43 billion, yet the government only captured about US$4.5 billion, representing a mere 10.4 percent. He stressed the need for a tactical approach to increase the mining sector's contribution to public finance, advocating for deliberate policy choices to strengthen revenue mobilization and deepen value retention.

Adding to the concerns regarding revenue structure, Ken Ashigbey, CEO of the Ghana Chamber of Mines, revealed an imbalance in royalty contributions. He pointed out that multinational mining companies, despite accounting for a smaller portion of Ghana’s total gold production, contribute a disproportionately higher share of royalties. For instance, US-owned firms contributed 12 percent of production but paid 23 percent in royalties, and South African firms, with 18 percent production, paid 37 percent. In stark contrast, the small-scale mining sector, responsible for 52 percent of production, paid "virtually nothing" in royalties. Mr. Ashigbey also lamented that only 8 percent of mineral royalties are disbursed into mining areas, with the majority (78 percent) flowing into the Consolidated Fund, leaving local communities with limited direct benefits for development projects. He called for a national conversation to reform this distribution system.

Amidst calls for greater national control, a consensus emerged among experts cautioning against an abrupt move towards full nationalization. Wisdom Puplampu, a mineral economist at the Minerals Commission, argued that nationalization alone would not automatically guarantee greater financial benefits for the state. He warned that such a move could create uncertainty and send negative signals to potential investors, potentially jeopardizing corporate income tax revenues that efficient private operators currently provide. Similarly, Dr. Frank Boateng, a lecturer at the University of Mines and Technology (UMaT), recalled Ghana’s past unsuccessful experiments with state ownership due to the immense capital requirements of the industry, which led to the sector's eventual privatization. Both experts emphasized that "it takes so much to build a gold mine," a financial demand often beyond the reach of local investors. Dr. Owusu Sarkodie also advised a gradual, tactical transition towards increased state participation, highlighting the risks of radical policy shifts and referencing international models adopted by other resource-rich nations that pursue stronger state involvement.

Instead of nationalization, experts advocated for strategic transformation through robust policy frameworks and innovative financing models. Gideon Ayi-Owoo, a Partner and Resource and Industry Expert at Deloitte Ghana and Africa, called for stronger, forward-looking policy frameworks to ensure balanced benefits for all stakeholders. He urged the government to establish clear and bold policy guidelines governing the renewal of mining leases to reduce uncertainty and encourage reinvestment. Mr. Ayi-Owoo also stressed that if Ghana intends to pursue industrialization through mining, this requirement should be explicitly embedded as a precondition in mining agreements and lease conditions, stating, "I’m nationality agnostic. We just need good policies in place so that whatever decision we take benefits both the old owner and the new owner."

To strengthen local participation and indigenous mining companies, Wisdom Puplampu proposed a hybrid financing model combining equity financing from the Ghana Stock Exchange with debt financing from local banks. He further called on the National Pensions Regulatory Authority to relax investment rules, allowing portions of pension funds—described as "patient capital"—to be invested in the equity market to support long-term investments in the mining sector. Both Mr. Puplampu and Dr. Boateng underscored the importance of attracting foreign direct investment (FDI) and fostering public-private partnerships (PPPs) to leverage private capital, technical expertise, and operational efficiency, which are crucial for the sustainable growth and management of large-scale mining operations.

In conclusion, the discourse at the JoyBusiness Roundtable underscored a shared vision for Ghana's extractive sector: a strategic transformation rather than a radical nationalization. The path forward involves establishing clear, consistent policy frameworks that promote transparency and certainty, developing innovative financing models to boost local participation, ensuring a more equitable distribution of mineral royalties to benefit host communities, and meticulously structuring state and local involvement to maximize financial returns while maintaining an attractive environment for both domestic and foreign investment. This comprehensive approach aims to unlock greater value from Ghana’s vast mineral resources for the long-term benefit of the nation.