Yen Nyenya, chairman of the Savanna Research and Advocacy Network and a member of both the Progressive Alliance of Ghana and the Social Justice Movement (SJM), has indicated that one of the most significant problems in Ghana’s mining sector is the nation’s heavy reliance on royalties and income taxes from mining companies, which, he argued, do not generate enough long-term benefits for the country.
“In Ghana, the major problem we face in terms of our extractive sector is that we depend on what we call royalties,” he stated.
During an interview on A1 Radio, Mr. Nyenya emphasized that mining companies in Ghana are allowed to pay minimal taxes while retaining a large portion of their profits. He explained that the current system, which is based on royalties and taxes, fails to ensure that Ghana retains significant control over its natural resources, particularly gold and oil.
He proposed a policy shift in which the government would hold a majority stake of 51 percent in resource extraction projects, with companies receiving the remaining 49 percent. This, he believes, would create a more equitable and sustainable model, ensuring that Ghana benefits more substantially from its resources. He also stressed the importance of controlling the extraction process to ensure that valuable resources, such as gold and oil, are properly sourced and managed.
“You have to be able to have control, to be sure that the right gold is taken out, the right oil is taken out. What is happening in our country is that we simply depend on royalties and income,” he stated.
Mr. Nyenya argued that Ghana’s failure to take full control of its resources has significantly hindered the country’s development. By shifting to a model where the government holds a greater stake in the mining sector, he believes Ghana could achieve a more balanced and prosperous future, with its resources benefiting the country and its people to a greater extent.
Source: A1Radioonline.Com | 101.1MHz | Gifty Eyram Kudiabor | Bolgatanga
