Ghana's Gold Mining Has Become A New Engine Of Economic Growth: The Processing Rate Of Gold Has Increased To 40%, And The Value Added Of Exports Has Increased Threefold.

Ghana Daily Telegraph March 30 news: Speaking at the Standard Bank Group's latest Economic Outlook conference, Jibran Qureishi, Head of Africa Research, said the Ghanaian economy is expected to achieve sustained growth in 2025, with gross domestic product (GDP) expected to grow by 5.4% year-on-year. "Ghana's GDP growth has shown remarkable resilience, growing by 5.8% year-on-year in 2024, up from 2.9% in 2023," he said. This is the fastest growth the economy has achieved since 2021 and we expect this momentum to continue, projecting 5.4% year-on-year growth in 2025 and 5.7% year-on-year growth in 2026."
Qureshi highlighted the important role of the mining sector in Ghana's economic recovery. He believes that the mining sector, especially gold, will remain a key driver of Ghana's economic growth. With the full resumption of production of Obuasi gold mine and the promotion of new energy strategy, Ghana is relying on mineral resources to restructure the growth model. For example, in 2024, Q1 gold production increased by 22% month-on-month, driving the proportion of mining foreign exchange reserves to 47%; West Africa's first lithium refinery, to be commissioned in 2026, is expected to create 3,000 skilled jobs. He said: "There is a clear pick-up in mining activity across the country, led by gold. In addition, the resumption of production from underperforming mines, such as Obuasi, and large lithium facilities expected to start up around 2026/2027 are expected to further boost growth." Qureshi pointed out that the mining revitalization plan has achieved remarkable results: "After the technical transformation of the Obuasi gold mine, the daily processing capacity has been increased to 5,000 tons, directly stimulating 12 companies in the surrounding industrial chain to resume production." It is worth noting that the government is promoting a revenue-sharing mechanism for mining, and plans to use 10% of the tax revenue from mining areas for local infrastructure. Qureshi also pointed to challenges in other sectors, saying: "While mining is booming, non-mining sectors such as manufacturing and real estate continue to face headwinds. The drought in northern Ghana last year also affected agricultural productivity and weighed on the sector's growth." According to the data, affected by the fluctuations in international commodity prices, the cost of construction steel rose 31% year-on-year, resulting in the delay of several real estate projects. The agricultural sector has been hit by weather anomalies, with a food deficit of 450,000 tonnes expected in 2024. Despite these challenges, Qureshi expressed confidence in Ghana's economic trajectory. "The recovery of key mining operations and higher than expected growth potential in 2026 highlights the resilience of the Ghanaian economy," he said. However, it will be critical to address issues such as energy sector arrears and fiscal policy imbalances to sustain this growth momentum." On the exchange rate front, Qureshi expects the Ghanaian currency to weaken against the US dollar, possibly reaching 16.4 per dollar. Addressing the structural problems of foreign exchange and the continued depreciation pressure on the Sedi, Qureshi revealed a deep contradiction: "90 percent of foreign exchange earnings from mining and cocoa are deposited with the central bank, not the interbank market, resulting in an imbalance in the supply of dollars in the interbank market." To ease currency volatility, the Ministry of Finance plans to introduce foreign exchange futures contracts that will allow companies to lock in six-month forward rates. Analysts say Ghana is at a critical stage of economic transformation. With the implementation of the Mineral Value Chain Extension Act, Ghana's gold processing rate is expected to increase from the current 15% to 40% by 2027, driving a three-fold increase in the value added of precious metals exports.