IEA Says Ghana Must Maximise Benefits Of Natural Resource Wealth Through Value Addition

IEA Says Ghana Must Maximise Benefits Of Natural Resource Wealth Through Value Addition

  • IEA says Ghana must invest in the creation of refineries and processing companies to add value to the country's natural resources
  • According to the IEA, the lion's share of all of Ghana's natural resources profits are siphoned out of the country by multinationals
  • The IEA said by adding value, Ghana would be able to gain much more and create much-needed job opportunities for the youth

The Institute for Economic Affairs (IEA) says Ghana must implement measures to maximise the benefits of its natural resource wealth.

According to the IEA, the larger percentage of profits from exploiting the country’s natural resources goes to multinationals that siphon it out of the country.

IEA Says Ghana Must Maximise Benefits Of Natural Resource Wealth Through Value Addition
Dr Kwakye says the country must be more refineries and agro-processors. Source: Ghanaian Times
Source: Getty Images

The IEA says this puts the nation at a great disadvantage and has urged the government to reverse the situation.

Director of Research at IEA Ghana, Dr John Kwakye, said this in reaction to President Akufo-Addo’s praise for Ghana reclaiming its previous spot as the largest gold producer on the continent.

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Akufo-Addo, during his State of the Nation Address on February 27, stated that Ghana has surpassed South Africa in gold production by four million ounces.

According to Dr Kwakye, while this comes as good news to Ghana, the country would, however, receive not more than 20 per cent of the proceeds from the sale of the gold.

This, he says, is worrying and must be addressed.

He stated that the President’s announcement of developing a local gold refinery to add value to the commodity is long overdue.

Dr Kwakye suggested extending the policy to all natural resources and agricultural commodities to increase their values.

He said the country must take advantage of the vast difference between the prices of refined products and raw commodities.

IEA urges the government to employ competent managers for ECG

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The Institute of Economic Affairs, speaking at the same press briefing, said the government must employ expert managers to manage the Electricity of Ghana (ECG).

The IEA said the myriad of challenges affecting the ECG needs expert attention and a holistic approach to solving.

This follows an erratic power supply across the country due to faulty transformers and teething problems within the company.

The IEA urged the government to increase power sector investments to improve power supply infrastructure in the country.

Dr Kwakye noted that the erstwhile Mahama government's investment in the sector had partly kept the lights on for the past seven years.

IEA urges the government to wean itself off IMF, World Bank reported that the Institute of Economic Affairs says the country's reliance on Bretton Woods institutions to bolster the national currency is unsustainable.

The IEA said the situation contributes to the country's high debt levels and could lead to an economic collapse if left unchecked.

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It has urged the government to live within its means to avoid going to the international market to raise funds

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