AMN - Ghana’s drawcards deliver growth – comment by Yolanda Torrisi

In-country procurement and a push towards cheaper energy are two measures that Ghana’s government is using to good effect to grow its resources industry. The country, which is known for its gold resources, increased the headcount in its mining industry by 2,531 people, or 10.6%, to 26,425 in the year to June 2019.

Earlier, in calendar year 2018, Ghana’s local mining services industry served up US$1.4 billion in goods to the resources industry, or 87.3% of total spend.

Ghana’s officials are keen to promote official mining industry investment and their efforts are starting to pay off with more cash in government coffers.

Deputy Energy Minister Mohammed Amin Adams spoke about the country’s continued efforts earlier this year and confirmed Ghana was hoping make the industry an attractive proposition for investors.

Adams told the mid-year Ghana Mining and Energy Summit 2019, “At this moment in our development history, it has become necessary for us to deepen the contribution of mining and energy towards the growth of our economy and to accelerate the development of our country.”

The country is seeking to bring down gas price levels and enable lower-cost power production so it can charge cheaper tariffs.

Ghana’s efforts also seek to bring back certainty after confidence was lost between 2015 and 2016 during a power crisis that preceded reduced mining company investment.

Gold dazzler Ghana pushed South Africa off the top spot in the official gold mining production stakes last year. Annual production increased by about 600,000 ounces in 2018 to 4.8 million ounces, with Ghana beating South Africa for the first time ever, according to Bloomberg.

AngloGold Ashanti Obuasi gold mine output could add another 350,000 or 450,000 ounces a year to Ghana’s total output in coming periods with other projects also in the pipeline.

Development of African economies often goes hand in hand with the revival of the countries’ official mining sectors. Gold sector gains could add to these returns in the country whose regulatory regime is also attracting miners jaded with red-tape nations.

Industrialisation and efficiency and new mine investment all play a part in bringing wealth to nations and their mining industries. Government efforts to reduce costs, promote jobs and reduce sovereign risk can all make a difference on the continent. Let’s encourage this trend so we can move things forward.

- Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the continent. Contact: yolanda@yolandatorrisi.com