Mahama endorses local content reforms to empower businesses in mining sector

A set of sweeping reforms designed to increase Ghanaian participation and ownership in the mining sector has been unveiled at the maiden Mining Local Content Summit held at Planter’s Lodge in Takoradi.

The announcement was made by the Chief Executive Officer of the Minerals Commission, Isaac Tandoh, at the two-day summit themed “Strengthening Local Content and Indigenization: Building a Resilient Mining Sector in Ghana.”

President John Dramani Mahama, who was the Guest of Honour, delivered the keynote address, rallying support for the national reset agenda and championing the empowerment of local companies to occupy commanding heights in the economy, particularly within the mining industry.

He commended the Minister for Lands and Natural Resources and the Board of the Minerals Commission, chaired by Ambassador William Ntow Boahene, for organising what he described as a transformative summit aimed at steering indigenous businesses towards sustainable economic growth.

The President outlined government’s vision to deepen localisation and drive sustained national development. He formally opened the summit and toured exhibition booths, engaging mining service providers and stakeholders showcasing their products and services.

Reaffirming government’s commitment to ensuring Ghana’s mineral wealth directly benefits citizens, the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, said the reset agenda prioritises economic sovereignty and equitable distribution of mineral resources. He stressed that Ghana’s natural endowments must be leveraged to fund critical investments in schools, hospitals, infrastructure and industry.

While acknowledging mining’s significant contribution to the economy, Armah-Kofi Buah highlighted gaps in local participation. He noted that although mining accounts for approximately 43 percent of merchandise exports, Ghanaian businesses capture less than 40 percent of procurement spending, with more than 70 percent of high-value services dominated by foreign suppliers.

He called for strategic partnerships, technology transfer and robust capacity building to empower Ghanaian enterprises and warned against the practice of “fronting,” which he described as a theft of national opportunity.

The Minister outlined ongoing measures, including a new Local Content and Procurement Policy Framework and the creation of a Special Purpose Vehicle to catalyse downstream industrialisation. He urged stakeholders to envision a future where Ghana refines its own gold, develops lithium-based industries and equips young engineers with the tools to innovate. He concluded with a call for collective commitment to building an integrated and inclusive mining sector, cautioning against trading long-term ownership for short-term gains.

Mr. Tandoh said the reforms are aimed at correcting decades of imbalance in the ownership and control of mineral resources. He emphasised that employment alone is insufficient without equity participation and ownership by Ghanaians.

The reforms include the revocation of more than 300 small-scale mining licences acquired through irregular means; the operationalisation of District Mining Committees to review and recommend small-scale licence applications; a comprehensive review of the Minerals and Mining Act and the Minerals and Mining Policy with new Legislative Instruments introduced to close legal loopholes; the revocation of Legislative Instrument 2462 which permitted mining in forest reserves; the introduction of a new medium-scale licensing category to bridge the gap between small- and large-scale mining; reforms to stability and development agreements to prevent abuse and ensure Ghana captures greater value during commodity price upswings; and strengthened local content provisions embedded into mining agreements, procurement and employment policies.

Mr. Tandoh stressed that the reforms are not intended to punish investors but to ensure equitable sharing of benefits. He pledged that the Commission would enforce the law without fear or favour and partner with responsible investors. He also reaffirmed support for Ghanaian entrepreneurs, traditional leaders and local communities, while addressing environmental and social impacts.

He announced a renewed crackdown on “fronting,” linking the practice to illegal mining activities and warning Ghanaians against lending their names to foreign interests seeking mineral rights. The Minerals Commission, he added, is embarking on a comprehensive digital transformation drive to enhance efficiency and transparency in the regulation of the mining sector.

The maiden Mining Local Content Summit marks a significant turning point for Ghana’s mining industry, with the reforms aimed at strengthening local participation, reclaiming ownership and ensuring mineral wealth contributes to sustainable and inclusive national development.