A senior research fellow, Leslie Mensah, has urged the government to overhaul Ghana’s revenue mobilisation framework, particularly in the extractive industry, warning that current strategies are insufficient to support national development priorities.
Speaking on the need for structural reforms, Mr. Mensah advocated for a shift from the existing concession system to Production Sharing Agreements (PSAs), which he said have proven more effective in generating substantial revenues and foreign exchange inflows for resource-rich countries.
“Adopting production sharing agreements can enhance state revenue, strengthen foreign exchange earnings, and provide greater control over natural resources,” he noted, stressing that increased state participation in the sector would reduce dependence on external institutions to manage and market Ghana’s mineral wealth.
Mr. Mensah also criticised the government’s Gold for Development programme, describing it as inadequate in addressing fiscal shortfalls. He argued that the initiative treats gold merely as a business commodity rather than a strategic national asset, with limited state ownership and revenue capture.
In outlining a roadmap for reform, the research fellow recommended three key measures:
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Transition to Production Sharing Agreements – Move away from concessions to PSAs to boost government revenues and foreign exchange inflows.
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Cautious Approach to Borrowing – Avoid a premature return to international bond markets, which could deepen debt vulnerabilities and risk another financial crisis.
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Transparent Fiscal Reporting – Ensure full disclosure of financial sector support in national accounts to present an accurate picture of Ghana’s fiscal position.
Mr. Mensah concluded that these reforms would strengthen the country’s revenue base, enhance fiscal sustainability, and lay the groundwork for long-term economic growth.
