The President of the Ghana Chamber of Mines has questioned the effectiveness of local content policies in retaining economic value from mining operations, noting that Gold Fields alone returned approximately $5 billion to Ghana in 2024, yet much of that expenditure quickly left the economy through imports.
Michael Edem Akafia, who also serves as Vice President of External Affairs at Gold Fields West Africa, stated during an interaction with fellows of the Africa Extractives Media Fellowship on Monday, February 9, 2026, that headline revenues mask a deeper problem for the country, with much of the value created by mining failing to stay in the domestic economy.
In 2024 alone, Gold Fields returned about $5 billion to Ghana. Yet a large share of that money was spent on goods and services that were imported, meaning the funds quickly left the economy, Akafia explained.
The Chamber president highlighted what he described as an uncomfortable irony in Ghana’s local content implementation. While laws require mining companies to award contracts to Ghanaian businesses, many of these businesses are Ghanaian only by registration, while the goods they supply are imported. As a result, contracts technically comply with the law, but real value retention remains minimal.
They say we must appoint or award contracts to Ghanaian businesses. But those Ghanaian businesses, they are Ghanaian businesses 100 percent because the law says so, but they are imported. So if they are imported, that money is going again, he stated.
To illustrate the impact of the situation, Akafia compared Ghana’s mining towns with South Africa’s mining ecosystem. He recounted that in South Africa, most major mining inputs are produced locally, supporting manufacturing, skills development, and industrial growth. However, the contrast is stark in Ghana, where almost all key mining inputs are imported.
The biggest difference between Tarkwa, Obuasi, and Johannesburg is that if you look at the mining industry in South Africa, almost all the big inputs are made there. If you look at our industry, almost all the big inputs are imported, he noted. This explains why decades of mining in Tarkwa and Obuasi have not produced the same industrial transformation seen in Johannesburg, he added.
The Chamber of Mines believes the solution lies in unlocking value along the entire mining value chain, rather than focusing narrowly on mining revenues. According to Akafia, greater economic transformation will come from producing what mines consume. He maintains that inputs such as chemicals, equipment, consumables, and services must be produced within Ghana.
As a starting point, the Chamber has identified what it describes as low hanging fruit inputs that can realistically be manufactured locally. These include caustic soda and activated carbon, both heavily used in mining operations. Producing such inputs locally would reduce imports, retain foreign exchange, create jobs, and deepen Ghana’s industrial base.
To demonstrate the feasibility and value of this approach, Akafia used the high visibility safety uniforms worn by mine workers as an example. These uniforms are currently imported at an average cost of $55 per piece. With around 6,000 employees at Gold Fields alone, the import bill is substantial. Yet these uniforms could easily be manufactured in Ghana, he stated.
A local producer would not only serve the mining sector but could also supply organizations such as the Volta River Authority (VRA), construction firms, and other industries that require safety apparel. This would create businesses with a life beyond mining, Akafia noted.
While mining revenues may appear large, Akafia pointed out that operating costs are also high, leaving relatively thin margins. Much of this expenditure goes into imports, limiting the sector’s broader economic impact. Local manufacturing and services, on the other hand, offer more durable income, jobs, and skills, creating economic activity that outlives individual mines.
To further drive the point home, Akafia referenced the California Gold Rush, where it is often said that those who sold tools and shovels made more money than the miners themselves. The lesson, he said, is that the real wealth lies along the value chain, not just in extracting the resource.
For Ghana to truly reap the full benefits of mining, the Chamber of Mines believes the country must shift its focus from celebrating export earnings and royalties to building industries that support mining. By retaining value locally, Ghana can transform mining from a purely extractive activity into a foundation for long term industrialization, job creation, and economic resilience.
The mining sector contributed approximately GH₵17.7 billion in fiscal revenues in 2024, representing a 51.2 percent increase over the previous year and accounting for 24.3 percent of direct domestic taxes. Mineral royalties surged across all subsectors in 2025, with large scale gold mining posting royalties of $291.87 million as of September, a 40.18 percent increase from the same period in 2024.
Akafia was elected as the president of the Ghana Chamber of Mines in June 2024. At the Chamber’s 97th Annual General Meeting in 2025, he emphasized the sector’s growing contribution to the national economy. He noted that the industry contributed approximately GH₵17.7 billion in fiscal revenues in 2024.
Akafia has also advocated for stronger local content policies, greater investment in value addition and processing, and improved skills development for Ghanaian workers in the mining value chain. Speaking at the Mining on Top Africa (MOTA) 2025 conference in Paris, he highlighted the importance of building value adding capacities within Ghana’s mining industry.
The Chamber is working with government on a Mining Hub Study to realize the vision of transforming Ghana into a hub for mining knowledge, services, innovation, and sustainability. The study focuses on efficiency improvements, safety enhancements, and environmental management that supports sustainable economic transformation in host communities.
