Ghana Industry

Although lower prices and higher costs are a concern for Ghana’s mining industry, the Mining Commission’s re-evaluation of prospecting licences could add some momentum and set the scene for a welcome revival and new lease of life for private operators.

One of the beneficiaries of growth in Ghana’s construction sector has been the metals industry, which has recently been the target of investment. While manufacturers face challenges – including uncertain supply of inputs and competition from imports – continued economic expansion is expected to drive demand for these locally made goods.

With the elections now largely over, barring the final resolution of a handful of court cases contesting the results, Ghana’s government has a backlog of decisions to make, and one of the sectors that will be affected by this is mining.

Buoyed by high international mineral prices, Ghana’s mining sector continues to post solid growth, with revenues for gold, which remains the country’s biggest export, up by 28% last year. However, concerns are mounting that the government’s plans to overhaul the industry’s tax structure, including the introduction of a new windfall tax, could deter foreign investors.

The second-largest gold producer in Africa, Ghana is looking to maximise the benefits of the mining industry for the overall economy, both by revising licensing procedures and levying tariffs on the sector. It is hoped this will increase local participation in service provision, though some of the measures have provoked concern amongst sector operators.

While Ghana’s economy as a whole is burgeoning, its manufacturing segment has been struggling to meet its full potential, prompting the private sector and the government to work together to ensure that the rising energy and commodity sectors support rather than hinder industrial development.