The New Patriotic Party (NPP) government, under the leadership of President Nana Addo Dankwa Akufo-Addo, has taken bold and innovative steps to transform Ghana’s cocoa sector, positioning it for long-term viability and sustainability. At the forefront of this transformation is the Ghana Cocoa Board (COCOBOD), led by its Chief Executive Officer, Joseph Boahen Aidoo, who recently unveiled a landmark shift in how the cocoa sector is financed, along with other remarkable initiatives aimed at enhancing productivity for farmers. The initiatives show that the NPP government is committed to the welfare of cocoa farmers, making a solid case for continued support in the upcoming 2024 elections under the leadership of Dr. Mahamudu Bawumia.

One of the most significant changes introduced by the NPP government is the decision to finance cocoa purchases for the 2024/2025 crop season through a zero-borrowing arrangement. This innovative financial model departs from the previous system, where COCOBOD relied heavily on expensive syndicated loans from foreign sources to purchase cocoa. Under the new arrangement, international buyers will now pay directly into the Cocoa Marketing Company’s account on behalf of COCOBOD. This move eliminates interest payments and ancillary costs, reducing the financial pressure on COCOBOD and ensuring more sustainable operations.

Mr. Aidoo emphasized that this homegrown financing model is working well and will significantly ease the sector’s burden. It not only demonstrates the NPP government’s dedication to safeguarding Ghana’s cocoa industry but also reflects its prudent management of the national economy.

Another hallmark of the NPP government’s tenure has been the introduction of the Productivity Enhancement Programme (PEP), which has revolutionized cocoa farming practices in Ghana. Before this administration, only 5% of cocoa farmers engaged in vital practices like pruning, which are crucial for increasing yields. However, thanks to the PEP and the government’s focused efforts on training and resources, pruning is now a standard practice among cocoa farmers, contributing to a dramatic rise in productivity.

In 2016, cocoa farmers were producing an average of 450 kilograms of cocoa per hectare. Today, under the leadership of President Akufo-Addo, productivity has surged to 800 kilograms per hectare—a nearly 80% increase. This leap in yields directly benefits farmers by boosting their incomes and ensuring higher-quality produce for both the local and international markets.

The NPP government has also promoted various innovations in cocoa farming, including improved productivity-enhancing practices such as hand-pollination. These techniques are designed to improve the yield and quality of Ghana’s cocoa, positioning the country as a global leader in cocoa production.

The results speak for themselves: the NPP government has put in place sustainable systems that ensure Ghana’s cocoa industry not only thrives today but is also prepared to compete in the future.

As the NPP government under President Akufo-Addo has shown resolute commitment to the cocoa sector, cocoa farmers must support Dr. Mahamudu Bawumia, the NPP’s flagbearer for the 2024 elections. Dr. Bawumia has been an integral part of this administration, and he is well-positioned to continue the forward-looking policies that have already brought so much benefit to cocoa farmers.

Voting for Dr. Bawumia means voting to continue the zero-borrowing arrangement, which reduces financial strain on the cocoa sector. It also means supporting continued productivity-enhancing initiatives, which have already proven successful in transforming yields and incomes for farmers. Under Dr. Bawumia, cocoa farmers can trust that the progress made in the last eight years will not only be protected but will be further built upon to secure a better future for them and their families.

The NPP government has demonstrated its ability to innovate and implement effective policies that have transformed Ghana’s cocoa sector. From the zero-borrowing arrangement to the Productivity Enhancement Programme, these initiatives have made cocoa farming more profitable and sustainable. Cocoa farmers have every reason to trust that the NPP, under the leadership of Dr. Bawumia, will continue this positive trajectory. As the 2024 elections approach, cocoa farmers must rally behind Dr. Bawumia and ensure the continued growth of the sector that sustains their livelihoods.

Chiefs and Islamic clerics in the Fanteakwa District of the Eastern Region have sent a stern warning to illegal miners (galamseyers), particularly, those mining in the Birim River, to immediately remove their changfan machines and vacate the area peacefully.

The directive also applies to those mining illegally in the forest reserves and along highways, with severe consequences awaiting non-compliant individuals.

Call to action

At a durbar in Osino on Friday, October 11, 2024, the traditional leaders and Islamic clerics pledged to spearhead the fight against illegal mining, ensuring the arrest and prosecution of offenders

Organized by the Ghana National Association of Small-Scale Miners (GNASSM), the event focused on promoting sustainable mining practices under the theme “Sustainable Small-Scale Mining for National Development”. It brought together key stakeholders such as religious leaders, government officials, and licensed small-scale miners.

Devastating Impact of galamsey

According to the Chiefs and Islamic clerics, the effects of galamsey extend beyond environmental degradation, stressing that it undermines local customs and lifestyles.

“We can’t stop mining, but it must be done responsibly and sustainably. River bodies and forest reserves are red zones; get licensed and trained to mine responsibly”, Osabarima Okogyeaman Apagya V underscored.

He added “Anytime there are issues about mining, the chiefs are blamed. This time around, we the chiefs have resolved to assist the government to clamp down galamseyers. So, all those with changfans mining in river bodies, particularly, in the Birim River, if you don’t want to incur our wrath, remove the changfans and go home peacefully”.

Led by Osabarima Okogyeaman Apagya V, Chief of Apapam, the traditional authorities and the Islamic clerics assured of partnering the military and GNASSM taskforce and monitoring units deployed by the government to clamp down on illegal miners. He urged the people to desist from politicizing the galamsey menace, noting that the fight against illegal mining is a collective responsibility.

Alhaji Abdul Rahman, Chief Imam of Nsutam urged the licensed miners to unite against galamseyers and reclaim mined lands, prioritizing environmental safeguarding and safe drinking water sources.

“Let us make the reclamatio

n of the mined lands a priority. We must strive to safeguard our own environment. To those mining in the Birim River, please go peacefully because we are coming after you”, he underscored.

The Fanteakwa South District, carved out of the Fanteakwa District in 2018, is particularly vulnerable to the effects of galamsey. With Osino as its capital, the district covers 803 square kilometers and shares boundaries with Fanteakwa North District, Kwahu South District, East Akim Municipal, and Atiwa East District. The district has a population of 58,987, according to the 2021 Population and Housing Census.

The District Chief Executive of Fanteakwa South, Ernest Ofosu called for equity in the fight against illegal mining. He urged communities in the district to volunteer giving information to government officials as such information plays a critical role in the fight against illegal mining.

The General Secretary of the Ghana National Association of Small-Scale Miners, Godwin Armah, charged members of the association to prioritize responsible mining as there is life after mining.

He cautioned all sponsors benefiting from illegal mining to bring their activities to an end or face their wrath in the coming days.

Discussants pledged their full support to the fight against illegal mining.

A professor of Accounting and Finance at UPSA, Isaac Boadi, has expressed his disappointment in the leadership of UTAG in its declaration of strike following the suspension of the planned nationwide strike by Organized Labour.

Appearing on the Bekyere Mu Show hosted by Gordon Asare-Bediako on Movement Television in Accra on Saturday, October 12, 2024, Professor Boadi indicated that universities should be solution centers and not places where strikes are planned.

“I am very disappointed in UTAG. I am not proud at this material moment belonging to the association. Galamsey has been with us for years and we know the repercussions, but we should also acknowledge the steps taken by this government to deal with it. This is not a battle that can be won in a day” he said.

“Organized Labour that happens to be the mother body of all workers took the decision to suspend the strike. Why should UTAG break away from such a decision? UTAG across the country voted on a particular motion, but Organized Labour had stood down on the strike. If UTAG’s leadership was minded doing the right thing, it ought to have brought a new motion for us to vote on, but not to declare a strike based on the subject matter which has since been abandoned by Organized Labour” he stated.

The Dean of Accounting and Finance who also happens to be a member of UTAG recounted the many instances where this government has listened to UTAG especially when it comes to the working conditions of members. He indicated that online teaching and book and research allowances have been increased and paid by the government, and, therefore, does not deserve the treatment UTAG is meting out to the administration.

“Which university in Ghana has sent any document to the government as a solution to the fight against galamsey? We have not given the government a single solution to this illegal mining activities. We should be solution finders and not agents of strike actions” he added.

He questioned the rationale behind UTAG declaring strikes at the least provocation when this never happens in sister countries. “Which universities outside Ghana use strikes as solutions to the challenges of their respective countries? They find solutions and do not add to the problem! No professors and lecturers in any European country wear red armbands all in the name of demonstrations. Why must our system be different?” he quizzed.

Professor Boadi implored the leadership of UTAG to concentrate on matters which are at the core of their profession and leave those which do not impact adversely on their work. The only reason for UTAG to embark on a strike action, he averred, is an issue that directly affects their work. He mentioned that UTAG-UPSA is not on strike since students are at their hearts.

Organised Labour’s Position Aligns with NDC’s Election Strategy, Leaked Confidential Document Reveals

A member of the University Teachers Association, UTAG, at the University of Professional Studies, Accra, UPSA, has debunked rumours that they voted YES to support the strike announced by Organized Labour

According to Professor Isaac Boadi, UTAG members at UPSA rather voted YES to ask government to tackle illegal mining activities, popularly called, galamsey, and not to embark on any strike action.

“The essence of our voting YES was not to embark on a strike action as many people may want to believe. We the members of UTAG-UPSA voted YES to ask the government to tackle illegal mining activities head-on to rid our water bodies and forests these agents of destruction” he said in an interview with ABCNews.

UTAG-UPSA, according to Professor Boadi and some of his colleagues, believe they should give the government some time to implement their plans to combat galamsey as they’ve already deployed resources to the affected sites, which is a step in the right direction.

“As educators, we have a critical role to play in serving the public, particularly our students. Their education and future shouldn’t be disrupted while we wait for the government to take action” he added.

“Let’s continue teaching and monitoring the government’s progress. If their efforts don’t yield desired results, we can reassess our stance. For now, let’s prioritize our students’ needs and give the government space to act” he said.

“Strike action should be a last resort, not a first response. Let’s exhaust all avenues before disrupting the academic activities. Our students’ education is at stake. Our students are writing mid semester exams and other academic exercises. We should give the government sometime while we continue teaching” he emphasized.

Professor Boadi also said that UTAG can only embark on a strike action when it has to do with their working conditions. Only issues that directly affect them should form the basis for them to go on strike.

“We should not join the bandwagon of people who want to strike over this. We should help in finding solutions to this challenge but not to compound it. We can’t kill one animal to resurrect another, that’s not the best. So to us, we don’t believe in and do not support UTAG going on strike. At UPSA, we are lecturing our students” he stressed on it.

Dr. Frank Bannor, Head of Research at the Danquah Institute, has cautioned against a blanket ban on small-scale mining, arguing that such a move would have dire consequences for Ghana’s economy.

In an interview on ADOM TV BADWAM Show on Wednesday, October 9, 2024, Dr. Bannor underscored the substantial contribution of small-scale mining to employment, economic growth, and Ghana’s foreign exchange reserves, emphasizing that banning it would undermine these critical sectors.

Small-scale mining’s role in employment and livelihoods

Dr. Bannor, who is also a lecturer at GIMPA, noted that the small-scale mining industry was a significant employer in Ghana, supporting millions of livelihoods, according to a 2016 United Nations Environment Programme (UNEP) report.

“We cannot underestimate the mining sector’s substantial contribution to the economy,” Dr. Bannor remarked. The UNEP report highlights that over 1 million people are directly employed in small-scale mining, with approximately 4.5 million more depending on the sector for their livelihoods.

In comparison, he indicated that the large-scale mining sector employs just 8,760 people directly and supports 25,603 contractors, according to the 2020 Ghana Extractive Industries Transparency Initiative (GHEITI) report.

These stark differences in employment figures, he stressed, demonstrate that small-scale mining has a far-reaching impact on Ghana’s workforce, especially in rural areas where alternative employment opportunities are limited.
Mining and economic growth

Dr. Bannor further noted that small-scale mining has been instrumental in Ghana’s recent economic achievements. “The mining sector played a major role in Ghana’s impressive 6.9% economic growth in the second quarter of 2024,” he explained, pointing out that this was the fastest growth rate the country had seen in five years.

Data from the Ghana Statistical Service (GSS) shows that the mining and quarrying sub-sector was a key driver of this growth, with the industry sector recording a 9.3% expansion in the second quarter of 2024. Gold, in particular, was a standout performer, experiencing its third consecutive period of growth, with a remarkable 23.6% increase during the quarter.

Dr. Bannor emphasized that this growth was largely due to small-scale mining operations, which have consistently boosted Ghana’s gold output. The first quarter of 2024 had already seen a growth rate of 6.8% in the mining sector, demonstrating the sector’s crucial role in stabilizing the economy.

“When the industry sector is growing, it means more skilled laborers are finding jobs, which in turn helps expand the economy even further,” Dr. Bannor remarked, adding that nearly 19% of Ghana’s employment is tied to the industry sector.

Threat to Trade Surplus and Balance of Payments

The Economist warned that a blanket ban on small-scale mining would also jeopardize Ghana’s trade surplus and balance of payments. He said, according to the Bank of Ghana, the country recorded a trade surplus of $1.81 billion in the first half of 2024, an increase from the $1.60 billion surplus recorded during the same period in 2023.
Dr. Bannor noted that this improved trade balance was largely driven by a significant rise in exports, especially gold and crude oil.

“In its Monetary Policy Report for the first half of 2024, the Bank of Ghana noted that total exports increased by $1.09 billion (13.4%) to $9.23 billion, with the value of gold exports rising by 46.4% to $5.04 billion. Small-scale mining contributed significantly to this growth, with the volume of gold exports increasing by 28.9% to 2.4 million ounces,” he added.
Dr. Bannor explained that a ban on small-scale mining would drastically reduce gold output, weakening the country’s trade surplus and worsening the balance of payments.

Impact on International Reserves and the Exchange Rate

Beyond trade figures, Dr. Bannor highlighted the potential impact of a small-scale mining ban on Ghana’s foreign reserves and currency stability. In August 2024, Ghana’s Gross International Reserves had increased by $1.58 billion to $7.50 billion, providing 3.4 months of import cover. This increase was largely driven by the country’s domestic gold purchase program, which relies heavily on small-scale miners for gold supplies.

The trade balance for the first eight months of 2024 also recorded a surplus of $2.78 billion, up from $1.66 billion during the same period in 2023. The surplus was mainly due to the sharp rise in gold exports, which surged by 62.2% to $7.27 billion, and an increase in crude oil exports.

“Banning small-scale mining would significantly reduce gold exports, eroding the surplus and depleting our foreign reserves. This could put pressure on the cedi, leading to a further depreciation of the currency,” Dr. Bannor cautioned. He explained that a weakened currency would fuel inflation, raise the cost of imports, and strain the economy even further.

Balanced approach needed

He acknowledged the need to combat illegal mining, or “galamsey,” He called for a more nuanced approach to small-scale mining regulation. “We need to distinguish between illegal mining and legitimate small-scale mining operations that comply with environmental and regulatory standards,” he said.

A blanket ban, he argued, would punish law-abiding operators and stifle an industry that has been a major pillar of Ghana’s economic growth. He urged policymakers to consider the broader economic implications of banning small-scale mining and to focus on solutions that would preserve the sector’s contributions while addressing illegal activities.
“It does not make economic sense to ban small-scale mining. The livelihoods of millions of Ghanaians, the stability of our economy, and the strength of our currency depend on this sector’s survival.”

Story by Bright Philip Donkor

Dr. Frank Bannor, Development Economist and Head of Research at the Danquah Institute, has called for greater responsibility and introspection in addressing the destructive rise of illegal mining, popularly known as galamsey.

Speaking during an interview on Peace FM’s Kokokrokoo Show on Tuesday, October 8, 2024, he explained the stark contrast between traditional mining practices and the current galamsey crisis. Dr. Bannor emphasized that greed and irresponsibility have become the primary drivers of illegal mining in Ghana.

“What has changed in how people mine, compared to history, is greed and irresponsibility on our part. This is what has led to the rise of galamsey, which is now a serious threat to our environment, economy, and future,” he indicated.

Dr. Bannor, who hails from the mining town of Obuasi, recounted his personal connection to Ghana’s mining industry. According to him, his father, uncle, and grandfather were all miners. However, he said his father’s traumatic accident underground, a direct result of the hazardous conditions in the mining sector, discouraged him from pursuing a career in mining. “The experience and trauma of my father having an accident underground due to mining demotivated me from engaging in mining directly,” he revealed.

Historical roots

Reflecting on the historical roots of mining in Ghana, Dr. Bannor explained the origin of galamsey, tracing it back to the traditional practice known as “gather and sell.”

“If my history serves me right, galamsey is the corrupted version of ‘gather and sell.’ When you look at the history of mining communities, before they all became multinational mining companies, it was ‘gather and sell,’ which is now galamsey. So, when you talk about the history of the Asante, especially the Adansi enclave, they were all engaged in ‘gather and sell,’” Dr. Bannor explained.

He further elaborated on how the practice was once a legitimate means for local miners to extract and sell gold, contributing to the livelihoods of individuals and families across mining regions. However, he stated that the shift from this traditional artisanal practice to the dangerous and illegal methods used today, under the influence of greed, had dramatically altered the mining landscape.

He said the devastation brought by modern galamsey practices has left environmental damage, poisoned water bodies, and eroded farmlands, making it one of the most pressing issues facing Ghana.

Collective efforts

Dr. Bannor emphasized the need for a collective effort to address the galamsey menace, stressing that the solution requires accountability from both individuals and communities, as well as stricter enforcement of regulations by the government. He also pointed out that education on responsible mining practices and sustainable livelihoods was critical to curbing the rise of illegal mining.

He reiterated that while mining has historically provided jobs and opportunities, the current trajectory of illegal mining threatens to undo much of Ghana’s progress. “Greed and irresponsibility are the real culprits behind the illegal mining epidemic. If we don’t change our approach, the future of mining in this country will remain in jeopardy,” Dr. Bannor warned.

By Bright Philip Donkor

Dr. Frank Bannor, a Development Economist and Head of Research at the Danquah Institute, has called on labour unions to pursue dialogue with the government rather than resorting to drastic actions such as nationwide strikes in the fight against illegal mining (galamsey).

In an interview on ADOM TV BADWAM Show on Wednesday, October 9, 2024, Dr. Bannor emphasised that while the issue of galamsey remains critical, Organized Labour must prioritize collaborative discussions to address challenges instead of taking extreme measures that could destabilize the economy.
He stressed the importance of engaging in meaningful dialogue to ensure sustainable solutions are reached without undermining the nation’s economic stability.

Labour Unions & the Mining Sector

Dr. Bannor urged labour unions to approach the government for dialogue, warning that escalating tensions or strikes would be counterproductive during such a critical political period.

“Given the upcoming elections, it’s important that labour unions engage in dialogue with the government to resolve their concerns rather than take drastic actions that may destabilize the economy,” Dr. Bannor said.

He referenced past experiences when the issue of illegal mining was at its worst under the previous National Democratic Congress (NDC) government, stating that Organized Labour remained largely silent despite the magnitude of the problem.

“During the NDC/Mahama administration, illegal mining was widespread, and the government’s response was so ineffective that a Minister of State at the time, Hon. Mahama Ayariga, even suggested regularizing illegal mining because he believed there was no way to win the fight. Yet, we didn’t hear a word from organized labour.”

Small-scale mining is an economic lifeline

Dr. Bannor criticized calls for a blanket ban on small-scale mining, describing such moves as economically unwise. “It doesn’t make any economic sense to ban small-scale mining,” he argued.

He highlighted that small-scale mining provides livelihoods for millions of Ghanaians and contributes significantly to the country’s gold production. Dr. Bannor emphasized the need for targeted interventions to curb illegal mining, rather than halting small-scale mining altogether.

He commended the government’s recent decision to collaborate with the Small-Scale Miners Association of Ghana as part of the renewed efforts to combat galamsey. According to him, involving small-scale miners in the fight is a positive step.
“The organized small-scale mining association has artisanal knowledge of where illegal mining activities are happening, and their collaboration with the government is crucial for success.”

Addressing the land tenure system

Dr. Bannor also identified the land tenure system in Ghana as a fundamental issue that contributes to the persistence of illegal mining. He explained that traditional rulers, who control around 80% of the country’s customary land, play a crucial role in land allocation for mining projects. While the Minerals and Mining Act of 2006 grants ownership of all minerals to the state, the involvement of traditional authorities complicates the government’s ability to manage mining operations effectively.

“Traditional rulers have a significant say in the negotiation and allocation of land for development purposes, including mining concessions,” Dr. Bannor added. “Even if a mining license is granted, no operations can begin without securing local approval, and this can slow down the process.”

He cautioned that political repercussions could arise when the government attempts to address land management issues, particularly during election periods. “Any government must be cautious when dealing with land issues, as traditional rulers hold substantial influence over their communities,” he said, adding that this makes the fight against galamsey more politically sensitive.

Political dimensions of galamsey

Dr. Bannor also discussed the broader political implications of illegal mining, recalling President Nana Akufo-Addo’s 2020 declaration that he had placed his presidency on the line to fight galamsey. While the government has introduced several measures to tackle the issue, political opposition has complicated these efforts, according to Dr. Bannor.

He accused the opposition NDC of undermining the government’s initiatives by encouraging illegal miners during the same period. “The NDC made promises to illegal miners, and to offer them equipment to continue their operations, which only worsened the problem,” he alleged.

Dr. Bannor called for constructive engagement between labour unions and the government and urged caution in addressing the complex issue of illegal mining. He emphasised the importance of preserving small-scale mining as a critical economic lifeline for millions of Ghanaians.

Story by Bright Philip Donkor

PRESS STATEMENT

Organised Labour’s Position Aligns with NDC’s Election Strategy, Leaked Confidential Document Reveals

We wish to bring to the attention of the Ghanaian public that we are fully aware that the recent calls by Organised Labour and their motives are aligned with the NDC’s political strategy for the 2024 elections. A confidential document titled “Winning 2024 And Beyond”, prepared by the National Democratic Congress (NDC) in 2021, was leaked into the public domain and came to our attention in December 2022. This document outlines the NDC’s strategy for the 2024 elections, and it is becoming increasingly evident that Organised Labour is following this politically motivated plan.

Over the past weeks, we have seen Organised Labour embark on a number of actions including threatening a national strike and vocalising strong opinions on the issue of illegal small-scale mining (galamsey). Interestingly, this newfound activism comes on issues they have largely been silent on for years. It is highly questionable that they have only found their voice with two months to go before the election, especially on an issue as critical as galamsey.

It must be stated that the government has made considerable efforts over the last seven years to tackle illegal mining, taking decisive actions to safeguard our environment and the future of our natural resources. These actions including passing legislation with stiffer punishments, prosecuting offenders including the famous galamsey queen, Aisha Huang, who committed crimes during Mahama’s administration and was never arrested, using the military to seize and destroy property used for galamsey, etc. Through all these efforts, Organised Labour was silent.

Moreover, Organised Labour has conveniently ignored the significant concessions made by the government during its recent meeting with the President, which were aimed at resolving these concerns. Despite these efforts, it is evident that Organised Labour’s current actions are politically charged, aimed at destabilising the government, and fuelled by the NDC’s strategy as outlined in the leaked document.

We call on all well-meaning Ghanaians and members of the various unions under Organised Labour to reject any attempt to politicise the fight against galamsey. This is a national issue that transcends party politics. The future of our environment, livelihoods, and communities depends on us coming together to fight illegal mining as one united front. All hands must be on deck to combat this menace and ensure the sustainable use of our natural resources.

Let us put the interests of Ghana first and stop using galamsey as a political tool.

Signed,

Salam Mustapha

National Youth Organizer

New Patriotic Party