The Paradox of Ghana's Mineral Sector.

Ghana has a long history of natural resource mining from decades of colonialism to post-colonial rule. Undoubtedly, Ghana is categorize among countries that are largest producers of gold on the continent but unfortunately, this minerals has not been able to lift Ghanaians out of poverty and economic hardships due to political thievery and bad management. As a country, we have done commercial oil productions as well as several decades of mining bauxites yet political leaders goes to Europe with cap in hand to beg for money. Ghana is endowed with immense economic mineral resources such as gold, manganese, bauxite, clays, silica sand, salt, diamond etc. yet the sector is still challenged due to poor management and lack of local participation in the sector.

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The minerals sector is an important part of Ghana's economy contributing about 5.5% of its GDP. The sector has the potential to contribute more to the economy but has not been exploit well. There are several legislations and policies around the sector to make sure that investors both local and foreign are attracted to boom and exploit it. The sectors has a history of state own from independence until the late 1983 where there was privatization of the sectors.

All minerals in Ghana belongs to the Ghanaian people with stewardship entrusted in the State where the State uses agencies such as the EPA, Minerals Commission to regulate the sectors. The sector contributes extremely to local economy however, there’s lack of local participation in the sector due to high financial and technical demands to extract minerals in Ghana. Locals are thus forced to resort to illegal and environmentally hazardous means of mining resources in Ghana. This often has dire consequence on the environment, health, water pollution as well as social structures.

Coupled with this environmental and health challenges is the problem of mismanagement and the use of obsolete technologies to mine. The sector has failed to adapt to the changes in the world and has continuously rely on unsustainable ways of extracting minerals. The country has also failed to modernize the sector, by refining and training artisanal miners on the best way to refine and create local markets for these minerals instead of exporting the minerals in its crude form. This has obviously resulted in capital flight where investors are not willing to reinvest in the country but takes everything out to their home countries. The mineral sector has become an enclave sector for foreign conglomerates with little or no participation from local investors.

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One major challenges of the minerals sector despites its contribution to GDP, is political thievery. This is the main problem of the sector due to the entrustment of the sector to political actors. The lack of transparency, illicit activities and accountability by politicians in the management of the extractive sector has resulted in huge cost as well as funds that are diverted for their parochial gains. For example, after ten years of commercial oil production, Ghana has made over ten billion dollars yet, there’s no significant legacy one can point to as projects done from this money apart from the terminal three of Kotoka international Airport which cost about thirty million dollars out of over ten billion dollars.

According to Public Interest Accountability Committee (PIAC), the oil revenue is not used in sustainable way that would benefits generations yet unborn but rather politicians. Politicians owns mining concessions and gives out license to their cronies and campaign financiers thus looting the sector at the expense of the ordinary Ghanaian.

For the mining sector to be sanitize, there need to be strict regulation that makes sure that, the acts conforms with international standards of mining taking into consideration of the environmental, social and health implications of mining. Again, efforts should be made by regulatory bodies and the state to make sure that there is local participation in the sector as well as local refinery of mineral products. Laws should be enforced and those who breaches it by stealing from the state should be prosecuted including political actors.
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