Ghana to end unprocessed mineral exports by 2030

Ghana, the world's largest gold exporter and a significant producer of minerals like manganese, bauxite, and diamonds, has announced plans to cease exporting unprocessed minerals by 2030. President John Mahama revealed this goal during a mining conference in Accra on October 19th, emphasizing that raw minerals should no longer leave the country and should instead support domestic processing and industrial development.

Ghana joins other African nations, including Zimbabwe, the DRC, and Namibia, who have also imposed export restrictions on raw minerals. However, capturing the full economic value from critical minerals remains a challenge for many African countries, as they are predominantly exported in their raw form for processing overseas. According to the United Nations Economic Commission for Africa, the continent currently captures less than 5% of the value added from critical minerals.

The African Development Bank suggests that domestic processing could boost Africa's annual GDP by $24 billion, export revenues by $32 billion, and create 2.3 million new jobs. Despite these potential benefits, some analysts, like Tresor Chovu, founder and CEO at Temple Fortune Capital, are skeptical about the feasibility of export bans.

Chovu argues that achieving this goal requires more than just good intentions, such as stable power supplies, advanced technology, a skilled workforce, local ownership, and international partnerships. He also warns that the ban could deter foreign investors and harm existing international mining companies, which may demand tax breaks and other incentives to set up processing operations.

The Organization for Economic Co-operation and Development has cautioned about the potential consequences of such measures, stating that export bans violate World Trade Organization rules unless an exemption is granted.