IEA urges temporary ban on mining to protect Ghana’s resource wealth

The Institute of Economic Affairs (IEA) has proposed a temporary suspension of all mining activities in Ghana, calling for a national pause until the country is better equipped to manage its natural resources for the benefit of its people.

Speaking at a press conference focused on improving returns from Ghana’s natural wealth, Justice Sophia Akuffo, a Distinguished Fellow of the IEA and former Chief Justice, raised alarm over the nation’s limited gains from its mineral resources. She criticized the current system that allows foreign companies to reap most of the profits, while Ghana receives relatively little in return.

“Despite the heavy tax burden, Ghana’s revenue generation remains inadequate, compelling the nation to rely on borrowing, which has contributed to a persistent debt crisis and repeated bailouts from the IMF,” she noted.

Justice Akuffo advocated for a comprehensive review of the agreements governing the extractive sector. According to her, these contracts overwhelmingly favor foreign interests, leaving Ghana with marginal royalties and taxes.

“For decades, our natural resources have been handed out under concessionary leases that give foreign firms exclusive rights. They take the lion’s share and give us crumbs. It seems we’ve been conditioned to accept this as normal because we undervalue our own wealth,” she said.

She rejected the notion that Ghana lacks the capacity to develop its own resources, calling it a myth that diminishes the country’s potential.

“I wince every time I hear that claim—it simply isn’t true. We must stop underestimating ourselves and start appreciating the richness of what lies beneath our soil,” she stated.

In closing, Justice Akuffo proposed a bold course of action: halting all mining operations until Ghana is fully prepared to harness its natural assets responsibly and for the direct benefit of its citizens.

“If we cannot properly utilise the blessings we’ve been given, maybe we should stop mining altogether—at least until we’re ready to manage them wisely and for ourselves,” she added.