The Bank of Ghana (BoG) must help create the financial conditions needed for Ghanaian-owned mining companies to expand, despite having no explicit statutory responsibility for the indigenisation of the country’s mining industry, according to an analysis by Laud Nartey.
Under Section 3 of the Bank of Ghana Act, 2002 (Act 612), as amended, the central bank’s primary duty is to maintain stability in the general level of prices.
Its wider responsibilities include supporting the government’s economic policy, promoting economic growth and development, ensuring the effective and efficient operation of the banking and credit system, and contributing to financial stability.
The Act does not specifically state that the BoG must play a role in making Ghana’s mining sector locally owned. However, as the government pursues indigenisation to ensure more of the industry’s returns remain in Ghana, the central bank’s influence over borrowing costs and access to credit could prove critical.
The issue has gained greater attention following the transfer of the Damang Mine, previously operated by Gold Fields Ghana Limited, to Engineers and Planners Limited after the locally owned company won the concession.
The official handover took place at the mine site on Saturday, April 18, 2026. The transfer was conducted by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah.
Engineers and Planners Chief Executive Officer Ibrahim Mahama, who said he had been associated with the Damang Mine for three decades, pledged significant investment that would benefit communities in the area.
“I would say that, look, if we all put our minds together, this is a success story. And the plan I have for Damang Mine is not a joke. I just want to prove that we can invest in ourselves in this country,” he said.
Ghana has considerable technical expertise in mining. Its specialists work throughout the West Africa subregion and elsewhere on the continent, including in Guinea, Mali, Senegal and Tanzania.
That experience means the country possesses highly qualified mining engineers. But technical knowledge alone is not enough to develop and operate a mine successfully.
Mining is a capital-intensive industry, and companies need substantial financial strength to undertake major projects. Ghanaian-owned businesses, however, have generally not accumulated enough capital to develop mines at the required scale.
Adamus Resources is one example of a Ghanaian-owned mining operation. The Minerals Income Investment Fund (MIIF) has also made investments in Asante Gold and Ghana Bauxite. The performance of those investments, however, raises questions about the most effective way to build sustainable local ownership.
Ghanaians therefore own mining assets, but a broader strategy is needed to strengthen their finances and enable them to compete and operate at the highest level.
That is where the BoG can make a significant contribution. Companies depend on affordable credit to expand and meet their operating costs. When commercial lending rates are high, the cost of borrowing can restrict their ability to invest, grow and create jobs.
The central bank’s most important contribution to the mining localisation programme should therefore be to work towards reducing lending rates.
A stronger macroeconomic environment would also benefit mining companies and firms that support the industry. If economic conditions improve, both multinational and local banks should be more willing to extend credit to mine-support service companies.
Against that background, the recent comments by BoG Governor Dr Johnson Asiama that the central bank was working to help businesses obtain cheaper funding have been welcomed.
Dr Asiama said the war in the Middle East was affecting Ghana’s domestic economy, but expressed confidence that the country could return to lower borrowing costs once the conflict ended.
“Lower interest rates are good for everyone; private sector people can borrow at lower rates. We are still committed to that; we want to see businesses access cheaper funding because then they can expand and create jobs, but it is a process. Running an economy, you are faced with global shocks, domestic shocks, exogenous shocks. When those shocks come your way, you need to adjust to them, and so we believe that by the time these shocks we are facing now edge out, we will see a return to that lower interest trend we are seeing from last year,” he said at the 131st MPC press conference.
Lower rates would allow mining firms and their suppliers to borrow more affordably, helping them increase production, expand their operations and recruit additional workers.
The BoG should also work closely with the Ghana Chamber of Mines to identify practical ways of helping locally owned businesses become more competitive.
One possible approach would involve using the financial strength of larger mining companies to support their Ghanaian contractors. For example, if Newmont or Goldfields has a stronger balance sheet, a supplier such as Kofi Ansah & Sons could seek finance on the strength of the contract it holds with one of those companies.
Such an arrangement would make borrowing cheaper and less risky, allowing the supplier to access capital more easily.
The Ghana Chamber of Mines already collaborates with the Ghana Association of Banks on a fund that supports selected banks, suppliers and vendors. However, that cooperation needs to be expanded to include greater engagement with commercial banks and the central bank.
If a consortium of banks has already completed due diligence on a company, that business may receive a lower risk rating in the credit-scoring process. A reduced risk profile can lead to more favourable interest rates, enabling the company to borrow under a financing arrangement based on the earlier assessment.
Another option would be to combine Ghanaian technical expertise with Foreign Direct Investment through joint ventures. Such partnerships could help locally owned companies strengthen their balance sheets and eventually raise funds on international markets.
A Ghanaian Sovereign Guarantee could also be considered as a way of securing finance. If the company failed, the borrowing would become a public debt, making that approach a significant risk for the state.
Where the government does not want to accept that exposure, a structured joint-venture model could provide an alternative. Over time, the Ghanaian partner could build the financial capacity required to take control of the mine and operate it independently.
Laud Nartey is a Ghanaian journalist with a special interest in business reporting. He has over a decade of experience in journalism and economic reporting. He can be reached on Facebook: Laud Nartey, X:@LaudNartey, LinkedIn: Laud Nartey; Instgram: Laud Nartey; email:nartey.laud@yahoo.com
