Ghana's rich mineral resources, particularly gold, have been a significant contributor to the country's economy, driving growth and development.
The mining sector contributes substantially to GDP, averaging 12.2% annually over the past decade. It also accounts for 13.18% of total revenues collected by the Ghana Revenue Authority over the past ten years. The sector has also attracted over $6 billion in direct investment since 1986, making Ghana a leading gold producer in Africa and sixth-largest globally.
The mining sector's resilience and importance to Ghana's economy underscore its role in funding public services, infrastructure projects, and promoting economic growth.
Corporate Social Responsibility: Investing in Communities
Beyond its economic contributions, the mining sector is deeply committed to the well-being of the communities in which it operates. Many large mining companies have established dedicated foundations or trust funds aimed at community development. These organizations implement various Corporate Social Responsibility (CSR) projects and initiatives designed to address socio-economic challenges in host communities. These efforts range from building schools and healthcare facilities to supporting local businesses and promoting environmental sustainability. These initiatives not only benefit local communities but also contribute to the country's economic growth and development.
Some notable initiatives include;
- Newmont Construction of Keyansi-Hwidiem Road: Newmont has completed the construction of the 9km Keyansi-Hwidiem road at a cost of $9 million, significantly improving infrastructure and connectivity in the area. This vital road links major towns and facilitates the transportation of food from farms to cities, benefiting local communities and boosting economic activity. The project's completion is a testament to Newmont's commitment to supporting local development and improving the quality of life for residents in the areas where they operate.
The company has also successfully executed several projects, including the Ntotroso Nursing and Midwifery College, the Ntotroso Senior High School, the Police Training Centre at Kenyasi Number One, and a satellite campus of the University of Energy and Natural Resources (UENR) at Kenyasi Number Two. These investments have not gone unnoticed, the President of the Ahafo Regional House of Chiefs, Barimah Twereko Ampem II has publicly commended Newmont for their community investment and was proud that the Ntotroso Nursing and Midwifery College has produced over 500 nurses serving in various health institutions across the country.
- Gold Fields Ghana's Tarkwa and Abosso Stadium: Gold Fields Ghana, in addition to its numerous community interventions, has invested US$16.2 million in building a world-class sports stadium in Tarkwa, and handed it over to the National Sports Authority. The stadium is expected to boost business activities, nurture young talent, and facilitate football development in Ghana.
- Golden Star Wassa: Golden Star Wassa Ltd, through its Golden Star Development Foundation, also in 2024 begun a series of development projects in its host communities in the Wassa area in the Western Region. The beneficiary communities are Akosombo, Akyempim, Brofoyedur, Kubekro, Odumasi, Accra Town, Old Subri, Juaben and Anyinabriem, all in the Wassa area, the company said in a statement. The projects are valued at more than $1 million and include the provision of a mechanized water system at Wassa Akosombo and the expansion of mechanized water facilities at Akyempim. Others are a one-bedroom six-unit teachers’ quarters each will be built at Brofoyedur, Kubekro, Odumasi and Accra Town. These initiatives demonstrate Golden Star Wassa's commitment to improving the lives of people in its host communities and contributing to the region's development. By investing in essential infrastructure and services, the company is helping to create a more sustainable and prosperous future for the local population.
- AngloGold Ashanti: AngloGold Ashanti's Obuasi Mines has supported 2,500 farmers with 30,000 oil palm seedlings as part of its Climate Resilience Oil Palm Project (CROPP). The project, valued at GH¢1.8 million, is part of AngloGold Ashanti's 10-year Socio-Economic Development Plan (SEDP). It aims to promote sustainable agriculture and climate resilience in six districts within the Adansi Traditional Area, in partnership with Solidaridad West Africa. This initiative demonstrates AngloGold Ashanti's commitment to supporting local communities and promoting economic development in the areas where it operates.
- Ghana Manganese Company Limited: Ghana Manganese Company Limited has supported community development initiatives, promoted economic growth and social welfare,
The list of projects and interventions for community development by mining companies is endless and often goes unnoticed, as most do not make headlines. Consequently, the benevolence of mining companies behind these initiatives frequently remains unacknowledged but nonetheless, they are relentless in their development agenda.
By investing in community development, mining companies in Ghana are creating value beyond mining and contributing to the country's growth and development. These initiatives demonstrate the potential for mining to be a force for good in local communities and the broader economy.
These investments can foster a positive relationship between mining companies, local governments, and communities, promoting sustainable development and mutual benefits. The mining sector's impact on Ghana's economy goes beyond financial contributions. Through community development initiatives and sustainable mining practices, the sector is shaping a more prosperous and sustainable future for the country. These efforts enhance the lives of people in mining communities and contribute to Ghana's long-term economic stability and growth.
Impact on local government
Mining companies' investments in community development have positively impacted local governments in several ways:
- Infrastructure Development: By investing in local infrastructure such as roads, schools, and healthcare facilities, mining companies have alleviated pressure on local authorities, enabling them to allocate funds to other productive areas.
- Economic Diversification: Support for local businesses and entrepreneurship has diversified the local economy, reducing dependence on a single industry and generating revenue for local governments. For example, Newmont's processing facility in Ahafo has enabled farmers to add value to their produce, such as ginger and pepper.
- Revenue Generation: Beneficiaries of alternative livelihood programs are now empowered to pay taxes to local authorities, contributing to developmental projects.
As established, the mining sector's role in Ghana's economy goes beyond its financial contributions. Through community development initiatives and sustainable mining practices, the sector is helping to shape a more prosperous and sustainable future for Ghana. These initiatives not only improve the lives of people in mining communities but also contribute to the country's long-term economic stability and growth.
In conclusion, Ghana's mineral wealth is a key driver of economic growth, government revenue, and foreign investment. The mining sector's commitment to community development and sustainable practices further enhances its positive impact on the country. As Ghana continues to harness its mineral resources, it is essential to ensure that the benefits are shared equitably and that the sector's operations are conducted in a manner that supports the country's overall development goals.
Source: Kofi Ahovi
Comments