Nationalising mines will not automatically increase state revenue - Mineral Economist

Wisdom Puplampu, a mineral economist at the Minerals Commission, cautioned against calls for the nationalisation of mines in Ghana during a JoyBusiness Roundtable discussion on rethinking Ghana's approach to gold mining, oil, and critical minerals. He argued that such a move would not automatically result in greater financial benefits for the state. He stated on Tuesday, May 26, "The stock exchange cannot give us the required capital we need to operate. So we need a hybrid approach."

Mr. Puplampu stressed the need for strategic reforms and stronger financing structures to support local participation in the extractive sector. He explained that the proposed hybrid financing model should combine debt financing from banks with equity financing through the stock exchange. He also called on the National Pensions Regulatory Authority to consider relaxing investment regulations to allow portions of pension funds to be invested in the equity market. He warned that discussions surrounding the nationalisation of mines could create uncertainty and send negative signals to investors.

Mr. Puplampu argued that nationalisation alone would not necessarily increase state revenue, explaining that local mining companies are already making substantial contributions through corporate income taxes. He cited data from the Ghana Revenue Authority, stating that local mining firms have performed strongly in terms of profitability and tax payments. He cautioned that if the state assumes control of mining operations without the capacity to manage them efficiently, Ghana could risk losing significant corporate tax revenues currently generated by private operators.