Ghana has taken steps to redefine its financial stake in the extractive sector following a landmark proposal to increase the state’s minimum carried interest beyond the current 10 percent threshold.
This bold recommendation, contained in the H. Kwasi Prempeh-led Constitution Review Committee (CRC) report, seeks to overhaul the fiscal regime of the mining industry to ensure that the nation captures a more substantial portion of mineral revenues in the immediate term.
By anchoring this requirement within a new constitutional framework, the committee aims to shift the status quo where the state often finds itself at the periphery of significant wealth generated from its own soil.
“The Committee recommends that the Constitution be amended to provide that Ghana shall be entitled in the short term to a minimum carried interest higher than 10 per cent of the total revenue generated.”
Constitution Review Committee Report
Expanding on this fiscal recalibration, the CRC envisions a transition toward a “service–rendered” model for the long-term management of natural resources.
Under this proposed structural shift, the government would move away from passive participation and instead take full control over resource revenues, treating the technical expertise of exploration firms as a service to be compensated rather than a justification for lopsided profit-sharing.
To facilitate this level of ownership, the committee suggests that Ghana leverages its sovereign strength to raise low-cost capital through sovereign bonds, effectively financing its own exploration and exploitation activities when the national budget falls short.
This strategy is designed to decouple the country’s resource destiny from the dictates of foreign capital, positioning Ghana as a primary driver of its mineral economy.
Constitutional Safeguards and the Natural Resource Commission
To prevent the fragmentation of regulatory oversight, the CRC has proposed the insertion of a new provision under Article 269 to establish a “coordinating authority for natural resources.”
This apex body would be mandated to promote “coherence, coordination, and compliance” across the often-siloed sectors of minerals, forestry, water, and land use.
Crucially, the committee emphasizes that this authority will not diminish the existing mandates of bodies like the Minerals Commission or the Forestry Commission but will instead ensure that all sectoral decisions align with “basic constitutional principles.”
By centralizing the oversight of environmental protection and agriculture alongside mineral extraction, the proposal seeks to eliminate the regulatory gaps that have historically allowed for the exploitation of resources at the expense of ecological and communal health.
Ocean Governance and the Blue Economy Frontier
Recognizing that the 1992 Constitution was drafted during an era of “limited awareness of the importance and value of the oceans,” the committee is pushing for a dedicated article on Ocean Governance and the Blue Economy.
This new legal pillar would impose a direct obligation on the state to “sustainably manage the ocean and ocean resources” while ensuring the security of Ghana’s maritime domain.
The CRC’s vision includes the rigid identification and protection of maritime frontiers and active cooperation with international partners to maintain a healthy marine environment.
By requiring the state to “ratify all relevant marine environment related international conventions,” the report ensures that Ghana’s vast offshore potential is integrated into the national development agenda with the same legal weight as its terrestrial mineral wealth.
Addressing Revenue Controversies and Ensuring Future Prosperity
The proposal arrives amidst a backdrop of intense controversy regarding Ghana’s actual take from its mineral wealth.
Critics and civil society organizations have long argued that the current 10% carried interest, combined with various tax holidays and stability agreements, leaves the state with a “pittance” while multinational firms repatriate billions.
The disputes over the “Agyapa” royalty deal and the variable royalty bands in the lithium sector highlight a deep-seated public mistrust in how mineral rents are managed.
By recommending a “heritage fund” be enshrined in the Constitution, the CRC provides a mechanism to “safeguard adherence” to the principle of intergenerational equity.
This fund would see a portion of current revenues “earmarked and invested for the long-term,” ensuring that the depletion of today’s minerals translates into permanent wealth for future generations.
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