The Institute of Economic Affairs (IEA) Ghana has rejected the proposed sliding scale mineral royalty regime, calling instead for a fundamental overhaul of Ghana’s mining policy anchored on full national ownership of mineral resources, with the Institute describing the framework as a continuation of outdated colonial structures.
The call was made by former Chief Justice and Distinguished Fellow of the IEA, Madam Sophia Akuffo, at a press conference in Accra on Tuesday, 4th February 2026, where she argued that the proposed royalty framework allows the export of Ghana’s mineral wealth while delivering limited benefits to citizens.
The proposed regime, contained in the draft Minerals and Mining (Royalty) Regulations, 2025 currently before Parliament, maintains a royalty based system through either a graduated sliding scale or a capped royalty structure across the mining sector, with royalties for gold and lithium ranging from five to 12 percent and a flat five percent rate applying to minerals such as diamonds, bauxite, manganese, salt, limestone, and iron ore.
A sliding scale royalty system adjusts payments made by mining companies to the state in line with global commodity prices, with rates rising when prices increase and falling when prices decline.
Referencing a Reuters report dated 15th January 2026, the IEA raised concerns about comments by the Acting Chief Executive Officer of the Minerals Commission, Mr Isaac Tandoh, who indicated that a draft bill expected before Parliament by March 2026 seeks to introduce a nine to 12 percent sliding scale royalty regime.
According to the IEA, this position is inconsistent with President John Dramani Mahama’s stated views on natural resource governance, with the Institute noting that the President has repeatedly emphasized the need for Ghana to exercise sovereignty over its natural resources to generate sustainable wealth and prosperity for citizens.
The IEA cited several occasions where President Mahama articulated this position, including the opening of the National Economic Dialogue on 3rd March 2025, his address to the 80th Session of the United Nations General Assembly, and his remarks at the World Economic Forum in Davos on 22nd January 2026.
Madam Akuffo argued that while the President has signaled a shift towards deeper reforms, the Ministry of Lands and Natural Resources continues to promote what the Institute described as a colonial royalty based paradigm, reflecting what it termed a lingering policy contradiction.
The IEA stressed that Ghana must retain full ownership of its mineral resources at all times and engage private sector expertise, both local and foreign, strictly through service contracts that preserve national control and maximize benefits for industrial transformation.
Madam Akuffo noted that national ownership of natural resources has been successfully implemented in countries such as Norway, Botswana, Chile, Burkina Faso, Niger, Mali, and several members of the Organization of the Petroleum Exporting Countries (OPEC).
The Institute maintained that full national ownership and effective resource management would generate financial, economic, and national security benefits far exceeding what royalty based systems under foreign dominated arrangements could deliver.
Madam Akuffo said ownership creates opportunities for value addition, higher revenues, and increased foreign exchange inflows, adding that it also ensures secondary benefits such as job creation, technology transfer, community development, and long term structural transformation of the economy.
The IEA grounded its position in constitutional and international law, noting that Ghana’s natural resources are sovereign assets held in trust for the people under the 1992 Constitution, and cited international instruments affirming permanent sovereignty over natural resources.
Despite Ghana’s vast mineral wealth, the country has sought assistance from the International Monetary Fund 17 times, a situation the IEA described as unacceptable and indicative of deep structural flaws in Ghana’s resource governance model.
Madam Akuffo rejected arguments that Ghana lacks the technical capacity, capital, or expertise to manage its mineral resources effectively, pointing to Ghanaian owned firms such as Engineers and Planners, Rocksure International, and BCM Ghana Limited, which are actively involved in mining activities across the country.
She added that technology is not an inherent advantage exclusive to foreign firms, noting that it can be purchased, leased, or acquired through partnerships, and that Ghana’s mineral resources themselves can serve as viable collateral for financing, a strategy already used in projects such as the Ewoyaa lithium development.
The Institute urged the government not to renew mining leases held by multinational companies whose agreements have expired, arguing that the move would give the state increased control over the mining sector and unlock long term economic, strategic, and national security benefits.
Madam Akuffo noted that the impending expiration of several mining leases presents Ghana with a rare opportunity to reform its mining ownership structure without breaching existing contractual obligations.
