The government is pursuing a hybrid financing and investment strategy for Ghana’s extractive sector as part of broader reforms aimed at maximising the country’s natural resources while protecting long-term national interests.
Mineral Economist at the Minerals Commission, Wisdom Puplampu, says the policy direction is focused on strengthening local participation without driving away foreign investors, warning that completely excluding foreign involvement from the mining industry could hurt investor confidence and slow sector growth.
Speaking to Joy Business on the sidelines of the Joy Business Roundtable Dialogue on rethinking Ghana’s approach to gold mining, oil and critical minerals, Mr. Puplampu explained that government reforms are centred on improving revenue management and closing loopholes that lead to financial leakages in the extractive industry.
He said authorities are using legal and regulatory measures to increase local participation, highlighting local content policies and efforts to improve access to financing for Ghanaian businesses operating in the sector.
According to him, local banks must begin to view the extractive industry as a viable investment opportunity and provide stronger financing support, noting that the stock market alone may not be able to raise the capital needed for large-scale mining operations.
Mr. Puplampu explained that the proposed hybrid financing model would combine bank loans, equity financing through the stock market and possible pension fund investments to support mining activities.
He revealed that ongoing discussions with the National Pension Regulatory Authority could allow portions of pension funds to be channelled into the equity market as long-term investment capital.
“If we adopt the hybrid approach, we will be able to make significant impact,” he stated.
Despite calls for stronger local participation, Mr. Puplampu stressed that foreign investment remains critical to the growth and sustainability of Ghana’s extractive sector.
He argued that nationalising mines or shutting out foreign investors would not automatically guarantee greater returns for the country.
“If we nationalise the mines, we are telling investors that we are closing our doors, and that is not government policy,” he cautioned.
The discussion formed part of wider conversations on how Ghana can reposition its gold, oil and critical minerals sectors to deliver sustainable economic growth and long-term national benefits.