The Ghana Chamber of Mines has reignited calls for the establishment of a Mineral Revenue Management Act to ensure that mineral revenue is managed in a transparent and accountable manner. According to Dr. Ign. Kenneth Ashigbey, CEO of the Chamber, such a law would provide a framework for effective utilization of mineral revenue for national development.
We believe that if we had a minerals revenue management act, just as the petroleum revenue management act, where you know the amount and the percentages, then the funds can be tailored into particular investments," Dr. Ashigbey said this in a media briefing on the performance of the mining sector in the 2024 fiscal year. He added that "This would enable us to track how mineral revenue is being utilized and ensure that it is contributing to the development of the country."
The Chamber's call comes on the back of data from the Bank of Ghana indicating that the mining sector is the biggest contributor of foreign exchange and GDP to Ghana's economy. Despite this, the country has not seen tangible development benefits from mining, with many communities in mining areas still lacking basic infrastructure and social amenities.
In 2024, Ghana's mining sector played a significant role in driving the country's GDP growth. The mining and quarrying sub-sector experienced robust growth, particularly in the first quarter, with a 12.9% year-on-year increase and 3.0% quarter-on-quarter growth when seasonally adjusted. This growth was a major factor in the overall 5.7% GDP growth for 2024, exceeding expectations.
Dr. Ashigbey cited examples of mining companies investing in infrastructure development, such as road construction, and suggested that a percentage of mineral revenues could be allocated to develop the railway sector, which would have a transformative impact on the economy.
A good percentage of mineral revenues can go into activities that facilitate development," he said. "If we can use mineral revenues to develop the railway sector, it would be a step in the right direction."
The Chamber believes that a Mineral Revenue Management Act would provide a framework for transparent and accountable management of mineral revenue, ensuring that the benefits of mining are shared equitably among Ghanaians. This, according to Dr. Ashigbey, would help to demystify the myth that mining is not contributing to national development.
The call for a Mineral Revenue Management Act is not new, but the Chamber believes that it is imperative for the government to prioritize this initiative in order to ensure that mineral revenue is utilized effectively for the benefit of all Ghanaians.
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