Ghana was enormously encouraged by the World Bank in improving the mining sector in the country. The World bank had urged Ghana to bring about mining sector reform in Ghana by altering legislation pertaining to mining. By doing so, the country could increase foreign investment.
The mining sector reform in Ghana proved to be effective and consequently, foreign investment in the country gained prominence.
Country’s role in mining sector reform in Ghana:
The African mining code underwent changes seconded by the World Bank. As part of the mining sector reform in Ghana royalty rates as well as income taxes were decreased. Investment by the private sector was also facilitated as part of the mining sector reform in Ghana.
In the year 2006, World bank had assisted development of the mining sector in Ghana by approving approximately, USD75 million to Newmont Mining, which is regarded as the largest producer of gold. The site selected for the project was Ghana. The mining sector in Ghana was earlier treated as an informal sector of the economy. The operations pertaining to the mining sector were not regulated or monitored.
However, with the implementation of the ERP or the Economic Recovery Plan, which laid stress on planning was introduced in the 1980s.
The PNDC or the Provisional National Defense Council, took assistance from the International Monetary Fund as well as the World Bank to revitalize the economy, which was in a state of stagnation.
Mining sector in Ghana suffered badly. There was decrease in mining activities with regard to production of gold, bauxite, manganese as well as diamond. After encountering the upheavals, the government in Ghana decided to make the mining sector a formal one. By the effecting mining sector reform in Ghana, several changes were introduced pertaining to the methodologies and policies. The mining sector in Ghana also increased the rate of employment by engaging many workers in the different mines of the country.
Last Updated on : 26th June 2013