By Maxwell Awumah, GNA
Ho, May 26, GNA-Mr Benjamin Boakye, Executive Director of African Centre for Energy Policy (ACEP), has called for periodic review of fiscal regimes, regulatory frameworks, and extractive arrangements to ensure the State maximizes national benefit while maintaining competitiveness.
He argued that “No mining regime is permanently optimal; conditions evolve, commodity prices fluctuate, technologies advance, and national priorities shift,” stating citizens and policymakers are right to interrogate the structure of benefits accruing to the state.
Speaking to the Ghana News Agency in an interview on renewed national conversation around resource nationalism, particularly in the mining sector, Mr Boakye however said, such conversations must be anchored on facts, data, and a fair understanding of how modern mining economies operate devoid of sentiments.
He said Ghana stands at a critical policy crossroads in relation to renewed national conversation around resource nationalism, particularly in the mining sector, is gaining momentum, driven by public concerns over whether the country is receiving adequate value from its mineral wealth.
“The debate has intensified further due to the stature and influence of advocates calling for mine nationalization and restrictions on lease renewals.”
Mr Boakye noted that the issue is more crucial at a time, when Ghana has just concluded its IMF-supported programme and is seeking a Policy Coordination Instrument (PCI) to anchor macroeconomic discipline, policy credibility, and investor confidence, silence or ambiguity on such a consequential issue risks creating avoidable uncertainty.
“The government must urgently and clearly state its position on the future of Ghana’s mining policy and the broader question of resource nationalism,” he said.
“This is not merely a sectoral issue — it is a defining economic moment. Mining remains one of Ghana’s most important sources of foreign exchange, fiscal revenue, employment, and long-term capital inflows. Any signals suggesting abrupt policy reversals or heightened sovereign risk will inevitably affect investor perceptions at a time when Ghana is working to consolidate stability, reduce country risk, attract lower-cost capital, and position itself for sustainable growth.”
He said calls for nationalization, particularly tied to expiring leases, misinterpret both Ghana’s mining laws and the commercial realities of the industry. They also overlook Ghana’s own history. In the 1970s, extensive state control led to production decline, underinvestment, inefficiencies, and eventual collapse. The country had to reverse course in the 1980s and 1990s, reopening the sector to foreign direct investment and private capital.
“That lesson remains relevant today: mining is capital-intensive and technically demanding, requiring continuous investment in exploration, modernization, and environmental management. Without sustained access to long-term capital and expertise, industries deteriorate rapidly.”
“This is why Ghana’s mining legislation deliberately built predictability into lease renewal systems. Renewals were designed to sustain long-term investment and production continuity, not serve as automatic opportunities for expropriation. While government retains legitimate authority to reassess fiscal terms, local participation, and environmental obligations during renewals, such adjustments must be evidence-based, commercially realistic, and globally competitive.”
He said stable frameworks are especially critical as indigenous Ghanaian firms increasingly enter large-scale mining.
The ACEP Boss said domestic companies are more vulnerable to politicization, and unpredictable lease structures could raise financing costs, diverting revenues away from taxes, royalties, and local benefits.
“Ironically, policies intended to increase national benefit could reduce the state’s fiscal take.”
The Executive Director indicated successful mining jurisdictions balance national interest with investment stability through maximizing mineral wealth through policy consistency, competitive fiscal regimes, institutional strength, and strategic negotiation — not abrupt nationalization rhetoric.
“Ghana must approach this debate with caution, maturity, and clarity.”
He said there is room for reform, stronger local participation, and improved fiscal optimization but noting, there is little room for unpredictability at a time when Ghana seeks to consolidate recovery, deepen investor confidence under a potential IMF PCI framework, and lower sovereign risk.
Mr Boakye added that the government’s position on resource nationalism could no longer remain implied but must be explicitly articulated.
“Markets, investors, domestic businesses, and citizens need clarity on whether Ghana intends to preserve the principles of contractual sanctity, regulatory predictability, and investment stability that have historically underpinned the mining sector.
The debate itself is healthy. But the outcome must strengthen Ghana’s competitiveness, not weaken it. At this moment in Ghana’s economic recovery, credibility may prove to be one of the country’s most valuable assets.”
GNA
Edited by: Kenneth Odeng Adade
Reporter: Maxwell Awumah