The Dean of the University of Professional Studies (UPSA) Law School, Professor Ernest Kofi Abotsi, says he supports the proposal for mining communities to have a greater share of the ‘national cake’ derived from the mineral resources extracted from those communities.
He argued that it was residents of mining areas, where mineral extraction such as gold takes place, who suffer the direct adverse effects.
Prof. Abotsi made the comments at a seminar series on the review of the country’s natural resources management regime organised by the Institute of Economic Affairs (IEA) in Accra yesterday. The event focused on the topic, “The Ideal Mining and Mineral Rights for Effective Natural Resources Management in Ghana.”
He said, “It is important for us to remember that when the local people suffer from the effects of the pollution of river bodies, devastation of farm lands, and the migration of the youth to the cities, the people who suffer the first are the local people and not those of us in Accra.”
“Can we, therefore, have a justification why the people who are at the base of the resource should have the same treatment as everybody in the country? I think it is a logical case that the initial owners or people who sit on the resource should have a greater part of the national cake,” he argued.
Additionally, Prof. Abotsi cautioned the country to be mindful of public proposals for shorter-term mining licences to be awarded to companies as part of reforms in the mining laws. He warned that overly short licence durations could open the door to manipulation of contracts by government officials through rent-seeking, with negative implications for the licensing regime.
He further urged Ghana to move away from the current royalty-based payment model used for mining firms and instead adopt a system that makes the state a shareholder in mineral extraction, as practiced in countries like Botswana.
He insisted that adopting a shareholder model would not deter investors, as Ghana’s natural resources—particularly gold—would remain attractive.
“It is about time Ghana becomes a beneficiary and not just a recipient of royalties. If we decide to leave the extraction of gold in the hands of private management, the investors can take full control over everyone, but with shareholding, the country will be interested,” he stated.
Notable personalities present at the seminar included the Minority Leader in Parliament, Mr Alexander Afenyo-Markin, former Chief Justice Justice Sophia Akuffo, former Speaker of Parliament Professor Mike Ocquaye, and former Council of State member Mr Sam Okudzeto.
BY BENJAMIN ARCTON-TETTEY
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