Skip to main content

Why Use Your Royalties for “Nsawa” and Blame Mining Companies for No Development?

 Royalties, mining

By Albert Amekudzi

In Ghana today, one of the easiest ways to trend on radio, television, or social media is to blame mining companies for underdevelopment in mining communities. According to the growing public narrative, mining firms are not doing enough. They are accused of taking the gold, making profits, and leaving communities poor.

It is an argument that gets applause almost instantly.

But while everyone is busy pointing fingers at mining companies, there is one awkward question nobody seems eager to ask:

What exactly has the State done with the billions of cedis in mining royalties and taxes it has already collected? That question rarely enters the conversation.

And perhaps it is because asking it would force us to confront a very uncomfortable truth: maybe the bigger issue is not simply whether mining companies are doing enough, but whether the State itself has failed in its own developmental responsibilities.

Because let us be honest for a moment when a community lacks roads, hospitals, schools, water systems, or jobs, why is the first instinct always to call the mining company instead of the Assembly, Parliament, or the government ministries that receive mining revenues every year?

Somehow, we have slowly normalized the idea that mining companies should function like district assemblies with excavators.

If the road is bad, call the mine. If the school has no roof, call the mine. If there is unemployment, call the mine.

At this rate, if the community football team starts losing matches, somebody may soon organize a press conference demanding that the mining company buy a new striker.

Yet these same mining companies already pay royalties, corporate taxes, PAYE taxes, levies, fees, and other statutory obligations to the State. Those revenues are specifically intended to help government undertake national and local development.

So the obvious question remains: Where has the money gone? This is the question the national conversation keeps avoiding.

Year after year, governments receive significant revenues from the mining sector. Portions of mineral royalties are allocated to local assemblies and development structures specifically to support mining communities. But in many places, the developmental transformation citizens expect is still absent.

And here lies the irony. Some assemblies reportedly use portions of these funds on recurrent expenditures, administrative costs, allowances, and sometimes even funeral donations. Yet when communities remain underdeveloped, the anger somehow bypasses the institutions directly responsible for public development and lands squarely on mining companies.

It is almost as if we have collectively decided that government’s role is to collect the royalties while mining companies perform the actual governance.

That arrangement may sound emotionally satisfying, but economically and institutionally, it makes very little sense.

Mining companies are businesses, not substitute governments. Their job is to invest capital, create jobs, pay taxes, comply with regulations, and generate returns for shareholders. Community support and corporate social responsibility are important, but they cannot replace the constitutional responsibilities of the State.

Some commentators now argue that government should stop renewing leases for foreign mining companies and instead hand concessions over to Ghanaians because “the money will stay in Ghana.”

It sounds patriotic. It also sounds wonderfully simple. Until one asks a few inconvenient questions.

Will Ghanaian-owned mining companies suddenly stop making profits? Will they ignore operational costs? Will they employ every unemployed person in the host community? Will they distribute all revenues freely to local residents instead of paying shareholders and investors? Of course not.

Whether foreign-owned or Ghanaian-owned, mining remains a business. No company regardless of nationality can sustainably operate as a replacement for the State.

And if we continue pushing this dangerous expectation that private companies must compensate for public-sector failures, we may unknowingly damage the very sectors keeping the economy alive.

Today it is mining companies under pressure. Tomorrow it could be telecom companies. Next week banks. Soon every profitable private institution may be expected to fix roads, solve unemployment, build schools, sponsor youth programs, provide water, and possibly repair broken hearts too.

Meanwhile, the institutions constitutionally mandated to drive development quietly escape scrutiny.

This is not an argument against holding mining companies accountable. Far from it. Mining companies must operate responsibly, protect the environment, engage communities meaningfully, and contribute positively to local development. Many already spend millions annually on scholarships, roads, clinics, water systems, and social investment programs.

But those efforts should complement government development not replace it.

The real issue Ghana must confront is whether the country actually has a coherent and transparent development plan for mining communities and for the nation as a whole.

Because if billions in mining revenues have been collected over decades and communities still feel abandoned, then citizens deserve more than emotional speeches blaming mining companies.

They deserve accountability. They deserve transparency. And they deserve clear answers on how mineral royalties have been utilized.

The debate therefore cannot continue as a one-way moral lecture directed only at mining firms while government accountability remains largely untouched.

If the State has genuinely failed in transforming mining revenues into visible development, then let us have the courage to say so openly.

But let us not pretend that the solution is to transfer the responsibilities of government onto private companies or blame foreign companies simply because they are profitable and visible.

Mining companies can support development. They cannot become the government.

And until Ghana begins demanding the same level of accountability from the State that it demands from mining companies, we may continue shouting at the wrong people while the real questions remain buried deeper than the gold itself.

Comments

Popular posts from this blog

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...

E&P takes over Black Volta and Sankofa Gold projects after years of delay

 Indigenous mining firm Engineers & Planners (E&P) has acquired Azumah Resources Ghana Ltd and Upwest Resources Ghana Ltd, taking full control of the long-stalled Black Volta and Sankofa gold concessions in the Upper West Region. The transaction, registered with the Registrar of Companies and approved by the Minerals Commission, ends nearly two decades of under-investment, legal disputes, and capital shortfalls that kept the concessions dormant. With global gold prices trading above $3,000 per ounce, the move comes at a time when Ghana is seeking fresh mining revenue to support its IMF-backed fiscal consolidation programme. E&P announced that it has secured funding to begin mine development and has committed to repaying verified debts associated with the projects. Ghana travel guide The company outlined a structured plan that includes: Working with the Ghana Revenue Authority (GRA) to audit and confirm loans previously recorded as project investments. Repaying genuine d...

Ghana Property & Lifestyle Expo Ignites Global Interest in Ghana’s Real Estate Market with Landmark Washington DC Edition

  Washington DC, USA – Hundreds of investors, professionals, and diaspora attendees gathered at the Washington Marriott Georgetown for the Ghana Property & Lifestyle Expo (GPLE) – Washington DC Edition , marking the dynamic launch of the 2025 Global Series. The two-day international showcase delivered a powerful mix of credible investment opportunities, expert insights, and strategic networking, spotlighting Ghana’s booming real estate sector as a leading destination for property and lifestyle investment in Africa. From luxury apartments and serviced plots to gated communities and commercial developments, attendees experienced the best of Ghana’s property landscape—featuring top developers from Accra and Kumasi, including Royal Kingdom Estate, Goldkey Properties, Devtraco Plus, Clifton Homes , and others.   Eddy Acquah Moderator & AJ Akua Johnson Brand Ambassador GPLE (Actress , Fitness Coach & Philanthropist) [/caption] Ambassador Victor Smith Applauds Expo’s Rol...