Ghana Chamber of Mines has challenged the assertions made by Joe Jackson, CEO of Dalex Finance, regarding the alleged low retention of mineral wealth within the Ghanaian economy.
This rebuttal follows a public discourse sparked by Mr. Jackson’s presentation, titled “Ananse Stories about the Economy of Ghana,” where he argued that the country fails to retain a significant portion of its mining revenues.
The Chamber contends that the figures presented by Mr. Jackson are based on a methodological mismatch that significantly understates the mining sector’s true fiscal contribution to the nation.
“The conclusion that the mining sector retains less than half of its export value, and that this is a primary driver of exchange rate weakness, should be treated with caution. The metric used to support this conclusion understates domestic economic activity due to scope inconsistencies and does not adequately capture domestic value added. Ensuring analytical consistency is essential for informing sound policy conclusions.”
Ghana Chamber of Mines
The Chamber clarified that the “retention ratio” of 46.2% cited by Mr. Jackson was derived by comparing the in-country expenditure of large-scale mining firms against the total export earnings of the entire mining sector.
This comparison is inherently flawed, according to the Chamber, because the export figures include output from both large-scale and small-scale miners, while the expenditure data only accounts for the large-scale members of the Chamber.
By excluding the economic activities and local spending of the small-scale sector which reportedly accounted for nearly 40% of gold exports in 2024 the assessment fails to capture the full scope of domestic value retention, leading to a “material distortion” of the industry’s economic impact.
Methodological Discrepancies and Scope Mismatch
The primary concern raised by the Chamber involves what they describe as a “Scope Mismatch in the Estimation of Retention.”
In a detailed technical response, the industry body noted that while export values are comprehensive, the data used for in-country expenditure is limited to its member companies.
This “inconsistent scope of comparison” means that the denominator in the retention equation is bloated by small-scale production, yet the numerator representing local spending completely ignores the local reinvestment, wages, and supply chain activities of those same small-scale operators.
The Chamber also pointed out that the simplifying assumption used in the presentation—that in-country expenditure is a perfect proxy for domestic value is a limitation.
Real economic retention includes more than just direct cash spending; it encompasses the broader multiplier effect of the mining value chain.
“Such an approach would provide a more accurate representation of the mining sector’s contribution,” the Chamber stated, emphasizing that the current narrative ignores the complexities of how mining capital circulates within the Ghanaian financial system.
Impact on National Policy and Exchange Rate Stability
Beyond the numbers, the Chamber is concerned that Joe Jackson’s claims could mislead the public and policymakers regarding the causes of the Cedi’s depreciation.
Mr. Jackson had suggested that “South Africa retains more from its gold exports even though it exports less than Ghana,” pushing for a 50-50 joint venture model similar to Botswana’s.
However, the Chamber maintains that blaming “forex leakages” in the mining sector for exchange rate weakness is an oversimplification.
They argue that the focus should remain on “strengthening macroeconomic stability” through evidence-based dialogue rather than anecdotal evidence that misrepresents the fiscal contributions of mining firms.
Furthermore, the Chamber highlighted that its members are some of the most transparent entities in the country, regularly disclosing payments to the government.
By framing the industry’s operations as a source of “capital flight,” the Chamber believes the presentation overlooks the heavy capital expenditures required for mining and the significant taxes, royalties, and local content investments made by large-scale miners.
They cautioned that “policy prescriptions based on this interpretation” could lead to unintended consequences for the investment climate in the extractive sector.
Commitment to Evidence-Based Economic Dialogue
Despite the friction, the Ghana Chamber of Mines expressed its willingness to continue engaging with stakeholders to find “durable solutions” for the economy.
The association commended Mr. Jackson for “stimulating public discourse” but reiterated that such discussions must be “firmly grounded in a consistent and comprehensive analytical framework.”
The Chamber emphasized that while it shares the goal of strengthening the Cedi and ensuring long-term economic resilience, it cannot allow inaccurate metrics to define the narrative of the mining industry’s performance.
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