What's Happening?
The President of the Ghana Chamber of Mines, Mr. Michael Edem Akafia, has called on the government to urgently pass a Minerals Revenue Management Act. This legislation aims to ensure greater transparency,
accountability, and sustainable use of Ghana's mineral wealth. Mr. Akafia made this appeal during the 11th Ghana Mining Industry Awards held in Accra. He emphasized the need for a structured framework similar to that of petroleum revenue management to strengthen public confidence in the management of mining proceeds. The proposed act is expected to secure long-term benefits for both current and future generations. Additionally, the CEO of the Chamber, Ing. Dr. Kenneth Ashigbey, praised the government's decision to scrap VAT on exploration activities in the 2026 Budget, viewing it as a step towards stimulating investment and expanding Ghana's mineral reserves.
Why It's Important?
The call for a Minerals Revenue Management Act is significant as it addresses the need for transparency and accountability in the management of Ghana's mineral resources. Such legislation could enhance public trust and ensure that mineral revenues are used efficiently and equitably. This is crucial for intergenerational equity, allowing for the saving and investing of today's revenue for future needs. The act could also stabilize the mining sector by providing a consistent policy framework, which is essential for attracting long-term investments. Furthermore, addressing illegal mining and ensuring a balanced approach to royalty regimes are critical for the sector's sustainable growth. The proposed act could position Ghana as a competitive mining hub, not only in production but also in technology and sustainability.
What's Next?
The next steps involve the government considering the proposal for the Minerals Revenue Management Act and engaging with industry stakeholders to develop a comprehensive framework. This includes addressing concerns about policy consistency and the proposed sliding-scale royalty regime. The government may also need to enhance enforcement against illegal mining activities, which pose ecological and governance challenges. Collaboration among government, industry, labor unions, host communities, and civil society will be essential to build a modern, ethical, and inclusive mining industry. The successful implementation of the act could lead to increased investment in local content, skills training, and innovation, further solidifying Ghana's position as a regional mining leader.
Beyond the Headlines
The push for a Minerals Revenue Management Act highlights broader issues of governance and resource management in Ghana. It underscores the importance of creating a legal framework that not only addresses economic concerns but also considers social and environmental impacts. The act could serve as a model for other resource-rich countries seeking to balance economic growth with sustainable development. Additionally, the focus on human stories from mining communities illustrates the potential for mining to drive social change when investments are directed towards people and communities. This development could lead to a more equitable distribution of mining benefits, fostering social cohesion and national development.
