The role of Bank of Ghana in the indigenisation of mines

The primary objective of the Bank of Ghana (BoG) is to maintain stability in the general level of prices, as stated under Section 3 of the Bank of Ghana Act, 2002 (Act 612), as amended.

In addition to price stability, the central bank is mandated to support the general economic policy of the government, promote economic growth and development, ensure the effective and efficient operation of the banking and credit system, and contribute to the promotion and maintenance of financial stability.

From the provisions of the Bank of Ghana Act, nowhere is it stated categorically that the BoG has a direct role in the indigenisation of Ghana's mining sector.

However, as the Government of Ghana seeks to indigenise the mining sector to ensure that more of the returns remain within the country by enabling locally owned mining firms to play a key role in the industry, this article analyses the role the Bank of Ghana can play in ensuring the success of the localisation of the mines.

To begin with, it is worth noting that the Damang Mine, formerly operated by Gold Fields Ghana Limited, has officially been handed over to Engineers and Planners Limited, a locally owned company, following its successful bid for the concession.

The handover ceremony took place at the mine site on Saturday, April 18, 2026, where the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, formally transferred the concession.

Speaking after the ceremony, the Chief Executive Officer of Engineers and Planners, Ibrahim Mahama, highlighted his three-decade association with the Damang Mine and pledged significant investments to benefit surrounding communities.

"I would say that, look, if we all put our minds together, this is a success story. And the plan I have for Damang Mine is not a joke. I just want to prove that we can invest in ourselves in this country," he said.

When it comes to technical capacity, Ghana appears to have it in abundance. Across the West African sub-region and indeed the wider African continent, Ghanaian mining specialists are highly sought after. Many Ghanaian professionals are working in countries such as Guinea, Mali, Senegal and Tanzania.

The country therefore possesses well-qualified and highly skilled mining engineers. However, technical expertise alone is not enough to develop and operate a mine successfully.

Mining is a highly capital-intensive industry that requires substantial financial resources. The reality is that many Ghanaian-owned companies have not yet built the financial capacity needed to develop and operate large-scale mines.

Adamus Resources is a Ghanaian-owned mining company. Investments have also been made through the Minerals Income Investment Fund (MIIF) in Asante Gold and Ghana Bauxite. The question, however, is: how are these investments performing?

Indeed, Ghanaians own mines, but there remains an urgent need for a deliberate strategy to strengthen the financial capacity of local mining companies.

This is where the Bank of Ghana has an important role to play.

Businesses require affordable credit to expand and finance their operations. They rely on commercial banks for funding, but high lending rates make borrowing expensive and limit business growth.

Therefore, one of the key contributions the Bank of Ghana can make is to continue working assiduously to create conditions that will support lower lending rates.

Generally, improvements in the macroeconomy benefit businesses across all sectors. Both multinational and local banks are more willing to extend credit to mining companies and mine support service providers when the economy is stable.

It is in this regard that the recent pronouncement by the Governor of the Bank of Ghana, Dr Johnson Asiama, that the central bank is committed to ensuring businesses have access to cheaper funding was welcome news.

He acknowledged that the conflict in the Middle East was affecting the domestic economy. However, he expressed confidence that once those external shocks subside, Ghana would return to a path of lower borrowing costs for businesses.

"Lower interest rates are good for everyone; private sector people can borrow at lower rates. We are still committed to that; we want to see businesses access cheaper funding because then they can expand and create jobs, but it is a process. Running an economy, you are faced with global shocks, domestic shocks, exogenous shocks. When those shocks come your way, you need to adjust to them, and so we believe that by the time these shocks we are facing now edge out, we will see a return to that lower interest trend we are seeing from last year," he said during the 131st Monetary Policy Committee (MPC) press conference.

To emphasise the point, when the macroeconomy performs well and lending rates decline, businesses—including mining firms—are better able to borrow, expand their operations and create more jobs.

The central bank should also deepen its engagement with the Ghana Chamber of Mines on practical ways of supporting locally owned mining companies.

At the Chamber level, stronger mining companies such as Newmont or Gold Fields often have stronger balance sheets. Where a local company—for example, Kofi Ansah & Sons—wins a contract to provide services to either company, it can borrow against the strength of those larger firms' balance sheets. This reduces lending risk and makes it easier to access capital at relatively lower interest rates.

Although the Chamber already collaborates with the Ghana Association of Banks to establish financing arrangements through which selected banks provide funding to suppliers and vendors, there is a strong case for expanding this collaboration to include the Bank of Ghana.

Where commercial banks have already conducted due diligence on these companies, their risk profile is significantly reduced. Lower risk often translates into more favourable lending terms and lower borrowing costs.

Another strategy worth exploring is one that combines local technical expertise with Foreign Direct Investment (FDI).

This can be achieved through joint venture arrangements that enable Ghanaian-owned mining companies to strengthen their balance sheets and eventually access financing on international capital markets.

Alternatively, the government could consider providing sovereign guarantees to support financing. Admittedly, this approach carries fiscal risk because any default would ultimately become a liability for the state. If government is unwilling to assume that risk, then the joint venture approach offers a more prudent long-term strategy. Over time, Ghanaian companies would build stronger balance sheets, acquire greater financial capacity and eventually be well positioned to take full ownership and management of the country's mining assets.