Economic Intelligence
How COCOBOD’s Financial Troubles Led to Government Intervention and the Bank of Ghana’s GH¢4.71 Billion Impairment Loss
The financial turmoil faced by Ghana Cocoa Board (COCOBOD) has reached a critical point, compelling the government to step in with a restructuring plan that underscores the deep-seated issues within the organization. By December 2022, COCOBOD’s consistent loan defaults (Cocoa bills) had escalated to an alarming GH¢8.24 billion in overdrafts, principal only. The gravity of the situation left the government with little choice but to intervene, proposing a restructuring that involved a 50% haircut on the outstanding balances and an exchange for new bonds maturing in 2038. This drastic measure resulted in a significant impairment loss of GH¢4.71 billion for the Bank of Ghana.
The financial crisis at COCOBOD, however, is not merely a result of mismanagement within the organization but also reflects the broader failures of leadership at the highest levels of government. Both the President and the Minister of Finance have failed the country by prioritizing political expediency over sound economic management. Instead of implementing necessary reforms to prevent such a crisis, they have allowed COCOBOD’s financial troubles to fester, leading to a situation where the consequences are now being felt across the nation’s economy. This failure of leadership has not only undermined confidence in COCOBOD but has also placed an additional burden on the already struggling national economy, further eroding public trust in the government’s ability to manage the country’s financial affairs responsibly.
COCOBOD’s Financial Deterioration
The recent audited financial statements for the two years ending 30 September 2023 revealed a dramatic turnaround in COCOBOD’s financial performance. From a staggering loss of GH¢4.2 billion in 2022, the Board managed to post a profit of GH¢2.3 billion in 2023, marking an improvement of 154.8%. On the surface, this might appear as a positive development. However, a closer examination of the details uncovers a more complex and troubling picture.
COCOBOD’s revenue increased by 41.7% in 2023, driven primarily by higher sales of cocoa beans. This boost in revenue was complemented by a substantial net foreign exchange gain of GH¢1.7 billion. Yet, these gains were insufficient to mask the underlying issues: escalating direct costs, soaring administrative expenses, and rising finance costs. The Board’s administrative expenses alone surged by 28.8% to GH¢3.4 billion, reflecting potential inefficiencies and mismanagement within the organization.
Government Intervention and the Impact on the Bank of Ghana
The severity of COCOBOD’s financial woes became undeniable when it consistently defaulted on its loans, accumulating an overdraft of GH¢8.24 billion by the end of 2022. These defaults, if left unaddressed, threatened to destabilize the broader financial system. Recognizing the risk, the Minister of Finance proposed a restructuring plan that sought to mitigate the damage.
The restructuring involved a 50% haircut on COCOBOD’s outstanding loan balances and an exchange of the remaining debt for new bonds set to mature in 2038. While this move was necessary to prevent further defaults and to stabilize COCOBOD’s financial position, it came at a significant cost to the Bank of Ghana. The restructuring led to an impairment loss of GH¢4.71 billion for the central bank, reflecting the financial strain caused by COCOBOD’s mismanagement.
The Root Causes of COCOBOD’s Crisis
The crisis at COCOBOD can be traced back to several key factors:
1. Mismanagement and Inefficiency: The significant increase in administrative expenses and direct costs points to inefficiencies within COCOBOD’s operations. The Board’s failure to control costs, particularly in its supply chain and administrative functions, exacerbated its financial troubles.
2. Reliance on Debt Financing: COCOBOD’s heavy reliance on debt financing, as evidenced by its escalating finance costs, placed the organization in a precarious position. The accumulation of debt without corresponding revenue growth or cost management led to an unsustainable financial structure.
3. Liquidity Challenges: The decrease in COCOBOD’s current ratio to 1.0:1 by the end of 2023 highlighted its liquidity challenges. The organization’s inability to manage its short-term obligations effectively contributed to its loan defaults and the subsequent need for government intervention.
Corruption and the Diversion of Resources
The rot within COCOBOD has been most evident in the pervasive corruption that has infiltrated its operations. Contracts for the procurement of goods and services, which should have been awarded through transparent and competitive processes, have often been handed out to cronies and politically connected individuals. These contracts are frequently overpriced, with the surplus funds lining the pockets of a few rather than being reinvested in the cocoa sector.
Moreover, the allocation of resources meant for critical operations such as fertilizer distribution, pest control, and farm support programs has been riddled with inefficiencies and graft. Reports have surfaced of ghost farmers receiving supplies, inflated project costs, and kickbacks being paid to secure contracts. As a result, the intended beneficiaries—the cocoa farmers—have been shortchanged, receiving substandard services or, in some cases, nothing at all. This diversion of resources has not only undermined the productivity and profitability of the sector but has also damaged the trust that farmers and the public once had in COCOBOD.
Cronyism and the Flow of Wealth to the Few
The mismanagement at COCOBOD has also been characterized by a pattern of cronyism, where key positions within the organization have been filled based on political loyalty rather than competence. This has led to a decline in the quality of leadership and decision-making within COCOBOD, further exacerbating its financial and operational woes. Individuals who should have been stewards of the institution’s resources have instead exploited their positions to siphon wealth into their private coffers.
This cronyism has created a culture of impunity within COCOBOD, where accountability is lacking, and those responsible for mismanagement are rarely held to account. This has emboldened corrupt practices, leading to the unchecked flow of value from the institution to the personal accounts of a select few. As a result, COCOBOD’s financial resources, which should have been used to stabilize the cocoa industry, improve over 800,000 farmer livelihoods, and contribute to national development, have instead enriched a small group of insiders.
The Decline in Institutional Integrity and Public Trust
The cumulative effect of corruption and mismanagement has been the significant loss of value of COCOBOD as an institution. Once regarded as the backbone of Ghana’s economy, COCOBOD has seen its reputation tarnished, both domestically and internationally. The consistent loan defaults, the need for government intervention, and the resultant impairment losses borne by the Bank of Ghana are all symptoms of the deeper malaise that has plagued the institution.
This decline in institutional integrity has not only affected COCOBOD’s financial performance but has also eroded public trust. Cocoa farmers, who rely on COCOBOD for fair pricing and essential support, have been the most affected by this decline. The loss of value within COCOBOD has translated directly into a loss of income and security for these farmers, many of whom now face uncertainty in their livelihoods.
Lessons and the Way Forward
The restructuring of COCOBOD’s debt serves as a stark reminder of the consequences of financial mismanagement. The GH¢4.71 billion impairment loss borne by the Bank of Ghana underscores the far-reaching impact of COCOBOD’s defaults, not just on the organization itself but on the country’s financial stability as a whole.
Moving forward, it is imperative that COCOBOD addresses the root causes of its financial difficulties. This includes implementing rigorous cost-control measures, reducing its reliance on debt financing, and improving its liquidity management. Additionally, the Board must ensure that its revenue growth is sustainable and not overly dependent on volatile factors such as foreign exchange gains.
For the government and the Bank of Ghana, this episode highlights the importance of early intervention and oversight in preventing financial crises within key state-owned enterprises. While the restructuring plan has provided COCOBOD with a lifeline, it is now up to the Board to ensure that it does not squander this opportunity for recovery.
In conclusion, the financial struggles of COCOBOD and the subsequent government intervention have exposed significant flaws in the management of one of Ghana’s most important institutions. The lessons learned from this crisis should serve as a lesson for reform, ensuring that COCOBOD can regain its footing and contribute positively to the nation’s economy without placing undue strain on the country’s financial system.
Business
Advancing Ghana’s Economy with a 24-Hour Services Sector
As Ghana approaches the 2024 elections, it’s crucial that we rethink our approach to economic growth and job creation. A visionary strategy for achieving these goals is the development of a 24-hour economy within the services sector. This proposal, championed by the NDC’s presidential candidate John Mahama, outlines a comprehensive plan to extend service availability, boost economic activity, create jobs, and improve public convenience. By adopting a 24-hour operational model in key service sectors such as finance, retail, healthcare, and public services, Ghana can unlock significant economic potential and reduce disparities across the country.
Objectives
The primary objectives of the 24-hour economy in the services sector include enhancing service availability, boosting economic productivity, generating employment, improving public convenience, and reducing economic inequality. By extending the operational hours of essential services, citizens and businesses will have uninterrupted access to critical resources, leading to an overall increase in economic activity and improved quality of life.
Key Components
Financial Services
Financial institutions play a pivotal role in any economy. Under the 24-hour economy plan, banks will extend their hours of operation, while online and mobile banking services will be available around the clock. This ensures that individuals and businesses can carry out financial transactions at any time, fostering greater economic activity. Moreover, Automated Teller Machines (ATMs) will be operational 24/7, providing consistent access to cash in both urban and rural areas. Customer support services will also be available round-the-clock to address any financial inquiries and transactions.
Retail and Hospitality
Retail and hospitality services are at the heart of a thriving economy. Encouraging supermarkets, convenience stores, hotels, and restaurants to operate 24 hours will not only boost economic activity but also enhance consumer convenience. This shift will be supported by promoting 24/7 online shopping platforms, equipped with efficient logistics and delivery systems. By making goods and services available at all hours, businesses can cater to a broader customer base, including tourists, which will ultimately boost the local economy.
Healthcare Services
Healthcare is a critical sector that requires continuous operation to ensure public health and safety. The proposal includes ensuring that clinics, pharmacies, and emergency medical services are operational 24/7. Expanding telemedicine services will provide round-the-clock access to medical consultations, particularly benefiting those in remote areas. Strengthening emergency response systems will ensure that life-saving services are available at all times, improving public health outcomes.
Utilities and Public Services
The continuous operation of utilities such as electricity, water, and gas are essential for a 24-hour economy. Ensuring the availability of these services will support both businesses and households, reducing downtime and improving productivity. Public services such as registration offices and government service centres will extend their operating hours, reducing wait times and improving service delivery for citizens. Additionally, waste management systems will be upgraded to operate round-the-clock, ensuring a cleaner and healthier environment.
Education and Training
A well-educated and skilled workforce is crucial for the success of a 24-hour economy. Promoting 24/7 access to online educational resources and e-learning platforms will enable continuous learning and skill development. Vocational training and skill development programs will be available around the clock, ensuring that workers are prepared for the demands of a modern economy. Libraries and study centres will also operate 24/7, supporting students and researchers in their educational pursuits.
Security and Safety
Maintaining public safety is paramount in a 24-hour economy. Law enforcement agencies will operate continuously to ensure that citizens and businesses are safe at all times. Fire and rescue services will also be strengthened to respond effectively to emergencies. Advanced surveillance systems will be implemented to monitor public spaces and deter crime, thereby improving public confidence and safety.
Job Creation
The implementation of a 24-hour economy in Ghana’s services sector is poised to be a significant catalyst for job creation across various industries. By extending service hours and ensuring continuous operations, the demand for a larger workforce will naturally increase, leading to the creation of numerous job opportunities. In the financial services sector, for instance, extended banking hours will require additional staff for customer service and technical support. Similarly, the retail and hospitality industries will need more employees to manage the night shifts in supermarkets, hotels, and restaurants. The healthcare sector will also see an uptick in the demand for emergency responders, caregivers, and telemedicine professionals to ensure round-the-clock care. Additionally, the continuous operation of utilities and public services will necessitate more personnel for maintenance, administration, and management roles. By facilitating job creation in these key areas, the 24-hour economy will not only reduce unemployment rates but also contribute to economic growth and improve the livelihoods of many Ghanaians.
Implementation Plan
The successful implementation of a 24-hour economy in the services sector requires a robust infrastructure and technology foundation. Digital platforms will be developed and enhanced to support 24-hour service delivery, while smart systems will enable real-time monitoring and management. Facility upgrades will ensure that physical infrastructure can support extended operating hours.
Workforce management is also a critical component of the implementation plan. Shift work schedules will be introduced to ensure continuous service delivery, with training programs provided to help employees adapt to the new operational model. Incentives will be offered to those working night shifts and extended hours, ensuring that they are adequately compensated for their efforts.
Linking to Relevant Sectors
A 24-hour services sector will have far-reaching impacts across multiple sectors. In the financial sector, continuous service availability will support business operations and economic transactions, particularly for SMEs that require flexible access to capital. The retail and hospitality sectors will see increased economic activity, especially in tourism, while healthcare services will experience improved public health outcomes due to round-the-clock access to medical care.
Utilities and public services will benefit from operational efficiency, reducing downtime and improving service delivery. In education and training, 24-hour access will enable continuous skill development, preparing the workforce for future demands. Finally, enhanced security and safety measures will ensure that public spaces remain safe, deterring crime and improving overall public confidence.
Conclusion
A 24-hour economy in the services sector is a visionary approach to enhancing Ghana’s economic growth and improving the quality of life for its citizens. By extending service availability, boosting economic activity, and creating jobs, this proposal has the potential to transform Ghana’s economy and position it as a leader in the region. Through collaboration with stakeholders, investment in infrastructure and technology, and the implementation of supportive policies, a 24-hour services sector will drive economic growth, reduce inequality, and ensure that essential services are available to all Ghanaians, at all times.
24-Hour Economy in the Agriculture, Agro-Processing, and Agribusiness Sector
As Ghana seeks to bolster its agricultural output and drive economic growth, the concept of a 24-hour economy, as proposed by John Dramani Mahama, the NDC’s flagbearer for the 2024 general election, in the agriculture, agro-processing, and agribusiness sectors, is emerging as a transformative approach. By ensuring continuous operations across the agricultural value chain, the nation stands to achieve multiple critical objectives: increasing productivity, creating jobs, reducing post-harvest losses, enhancing market access, stimulating economic growth, and combating food inflation, which reached a staggering 69% in 2022.
This article aims to evaluate how the implementation of this 24-hour economy policy could significantly benefit the agricultural sector and, by extension, the entire nation. The policy’s potential to revolutionize the agricultural landscape in Ghana cannot be overstated. By shifting towards continuous operations, the agricultural sector can optimize resource use, enhance productivity, and significantly reduce waste. The introduction of 24-hour irrigation systems and round-the-clock farming activities would ensure that land is utilized more effectively, leading to higher crop yields. Mechanization and continuous agricultural extension services would further support this growth, providing farmers with the necessary tools and knowledge to operate efficiently around the clock.
Objectives
Increase Productivity: Continuous operations in agriculture can dramatically increase productivity by optimizing land use and crop yields through modern irrigation systems and mechanized farming. This round-the-clock activity ensures that no time is wasted, and every opportunity for growth is maximized.
Job Creation: The implementation of a 24-hour economy will generate substantial employment opportunities in agriculture, processing, logistics, and agribusiness management, offering a new lifeline to both rural and urban economies.
Reduction in Post-Harvest Losses: A significant portion of Ghana’s agricultural produce is lost due to inadequate storage and processing facilities. By establishing 24-hour processing plants and cold storage facilities, post-harvest losses can be drastically reduced, ensuring that more produce reaches the market in optimal condition.
Market Access: Continuous market operations allow farmers and agribusinesses to access buyers at all hours, enhancing their ability to sell produce and receive timely payments. This round-the-clock access is crucial for maintaining a steady supply of goods and ensuring food security.
Economic Growth: The ripple effect of a 24-hour economy will stimulate economic activities in both rural and urban areas, driving income generation and contributing to overall economic growth.
Reduce Food Inflation: With a continuous supply of agricultural products, the market will be less susceptible to shortages, thereby stabilizing prices and reducing food inflation, which has had a crippling effect on household incomes.
Key Components
Agricultural Production: The backbone of this 24-hour economy lies in agricultural production. By implementing modern irrigation systems that operate continuously, crops can be cultivated throughout the year, even in dry seasons. Mechanization of farming activities, from planting to harvesting, further supports these operations, ensuring efficiency and higher yields. Additionally, round-the-clock agricultural extension services will be essential to provide farmers with the necessary technical support and innovations needed to maximize productivity.
Agro-Processing: Establishing 24-hour agro-processing facilities is crucial to managing the increased agricultural output. These plants will process raw agricultural products into finished goods, reducing the risk of spoilage and adding value to the produce. Cold storage facilities will play a pivotal role in preserving perishable items, ensuring they remain fresh until they reach consumers. An efficient logistics network is also necessary to support the continuous movement of goods from farms to processing plants and markets.
Agribusiness: To ensure the success of a 24-hour economy, market access for farmers and agribusinesses must be seamless. This involves creating markets and trading hubs that operate round the clock, allowing for continuous buying and selling of agricultural products. Financial institutions must also provide 24-hour banking and financial services to support transactions. Technology will be a key enabler, with digital platforms providing real-time market information, facilitating transactions, and managing the supply chain.
Implementation Plan
Infrastructure Development: Investment in infrastructure is paramount to the success of a 24-hour agricultural economy. This includes the development of modern irrigation systems, the construction of processing plants capable of continuous operation, and the establishment of cold storage and warehouse facilities. These investments will ensure that the agricultural value chain is robust and capable of supporting round-the-clock activities.
Capacity Building: Equally important is building the capacity of the workforce. Farmers, processors, and agribusiness owners need training in best practices for 24-hour operations. Extension services should be expanded to provide continuous support, while technological adoption should be promoted to enhance efficiency across the value chain.
Policy and Regulatory Framework: A supportive policy environment is essential for encouraging continuous operations in agriculture and agribusiness. This includes developing policies that incentivize 24-hour operations through tax breaks, subsidies, and grants. Regulatory oversight must also be strengthened to ensure quality standards are maintained and fair practices are observed.
Stakeholder Engagement: The success of this initiative will depend on strong collaboration between the government, private sector, and development partners. Public-private partnerships should be fostered to drive infrastructure development and capacity building. Local communities must be involved in the planning and implementation process to ensure their needs are addressed, while industry associations can play a key role in promoting best practices and advocating for supportive policies.
Benefits
The benefits of a 24-hour economy in the agriculture, agro-processing, and agribusiness sectors are far-reaching. Increased Employment: Thousands of jobs will be created, particularly for qualified agricultural professionals and skilled labourers. Enhanced Productivity: Agricultural output will rise significantly due to continuous farming and processing activities. Reduced Losses: The efficient processing and storage of agricultural products will lead to a significant reduction in post-harvest losses. Economic Growth: Both rural and urban areas will experience a boost in economic activities and income generation. Market Stability: A steady supply of agricultural products will stabilize prices and improve food security. Reduced Food Inflation: With a consistent supply of goods, food inflation will be curbed, easing the financial burden on consumers. Skill Retention: The expansion of local opportunities in the agricultural sector will reduce brain drain, keeping skilled individuals within the country.
Agriculture, Agro-Processing, and Agribusiness Sector Job Creation
Estimated Jobs Created from 24-Hour Operations:
- Farm Workers: Planting and harvesting staff, irrigation and maintenance workers.
- Processing Plant Workers: Machine operators, quality control staff, packaging, and distribution personnel.
- Logistics and Supply Chain: Transport drivers, warehouse operators, inventory managers.
Jobs Created from Economic Growth:
- Agribusiness Management: Agronomists, farm managers, supply chain managers.
- Research and Development: Agricultural scientists, food technologists, soil scientists.
- Support Services: Financial analysts specializing in agribusiness, marketing and sales professionals, agricultural extension officers.
In conclusion, transitioning to a 24-hour economy in the agriculture, agro-processing, and agribusiness sectors presents a unique opportunity for Ghana to boost productivity, create jobs, reduce post-harvest losses, and stabilize food prices. With the right infrastructure, policies, and stakeholder engagement, this initiative can transform the agricultural landscape, ensuring food security and driving economic growth across the nation.
Business
Galamsey: A Menace that Won’t Stop Under the Current NPP Government
Ghana’s illegal mining crisis, commonly known as “galamsey,” continues to devastate the country’s environment, particularly its forests and water bodies. Despite bold promises and high-level interventions, the fight against galamsey under the Nana Addo-led New Patriotic Party (NPP) government has proven ineffective. Worse still, the involvement of government officials, party members, and influential people within the ruling administration has contributed to the persistence of this environmental and economic crisis. The only way to halt this menace is by voting out the current NPP government, and a vote for Dr. Mahamudu Bawumia will only reinforce the ongoing degradation.
Nana Addo’s Failed Pledge to Fight Galamsey
In 2017, President Nana Addo Dankwa Akufo-Addo famously declared that he had placed his presidency on the line to stop galamsey. This strong rhetoric was supposed to signal his administration’s unwavering commitment to ending illegal mining. To demonstrate seriousness, the government established an inter-ministerial committee to tackle the issue, and security contingents, including the military and police, were deployed to assist in enforcing the law.
However, despite these measures, galamsey is still rampant across the country. Water bodies like the Pra, Ankobra, and Offin Rivers are polluted beyond recognition, and Ghana’s once-thriving forests are rapidly being depleted. The government’s failure to curb this environmental catastrophe is not just an issue of inefficiency; it is a reflection of deep-rooted corruption and underhand dealing within the ranks of the ruling party.
A Flawed and Politicized Security Structure
The anti-galamsey initiative has been heavily reliant on security councils such as the Regional Security Council (REGSEC) and District Security Council (DISEC), which are tasked with managing security issues, including illegal mining. These councils are chaired by political appointees, such as regional ministers and district chief executives, who are themselves affiliated with the ruling NPP. Their membership includes officers from the police, military, customs, and intelligence agencies, supposedly ensuring a holistic approach to fighting crime. Yet, these same institutions have failed to bring an end to galamsey.
One of the key reasons for this failure is the involvement of party officials and government appointees in illegal mining activities. According to Prof. Kwabena Frimpong-Boateng, former chairman of the Inter-Ministerial Committee on Illegal Mining (IMCIM), “many party officials from the national to the unit committee level had their friends, PAs, agents, relatives, financiers, or relatives engaged in illegal mining.” His revelations are shocking and confirm the suspicions that powerful forces within the NPP are benefiting from galamsey, either directly or indirectly.
How can a government be expected to solve a problem when its own members are complicit in perpetuating it?
Party Officials and Galamsey: A Deep-Seated Conflict of Interest
The real issue behind the NPP government’s inability to fight galamsey is that those who should be leading the fight are instead profiting from the crime. Prof. Frimpong-Boateng further alleged that appointees in the Jubilee House and relations of the president at the seat of government, are involved in illegal mining or are interfering with efforts to combat the menace. Such claims demonstrate a dangerous conflict of interest and corruption, where the very people mandated to protect Ghana’s natural resources are instead enabling their destruction.
Moreover, the involvement of Chinese nationals in illegal mining operations, often facilitated by local party actors, adds an international dimension to the crisis. The exportation of Ghana’s gold by foreign miners, with the backing of local influencers, not only devastates the environment but also drains valuable resources from the nation’s economy.
Prof. Frimpong-Boateng’s damning accusations that an NPP Member of Parliament in the Ashanti Region was selling illegally acquired concessions for personal profit illustrate the rot within the system. When government officials are profiting from galamsey, it is clear that the NPP under the leadership of President Nana Addo and Dr Bawumia is not truly committed to stopping it.
Galamsey Endemic Areas Are NPP Strongholds
What makes the situation even more troubling is that many of the regions hardest hit by galamsey activities are strongholds of the New Patriotic Party (NPP), with sitting Members of Parliament (MPs) who wield significant influence. The presence of these MPs, along with local government officials tied to the ruling party, raises serious concerns about the government’s commitment to combating this destructive practice.
1. Ashanti Region: A Hotbed of Galamsey Activity
The Ashanti Region, the traditional stronghold of the NPP, has some of the most widespread illegal mining activities in the country. Areas like Obuasi, Amansie Central, and Bekwai are plagued by galamsey, with water bodies like the Offin and Oda Rivers heavily polluted.
• Obuasi: Known for its rich gold deposits, Obuasi is also home to rampant illegal mining. The sitting NPP MP for the area, Kweku Kwarteng, has faced challenges in addressing the galamsey problem, despite the government’s purported efforts to crack down on illegal mining.
• Amansie Central: This district has been ravaged by illegal mining, particularly in towns like Jacobu and Adubia. These areas are also represented by NPP MPs who have struggled to curb the galamsey menace, despite the region’s importance to the party.
• Bekwai: Another mining area within the Ashanti Region, Bekwai has seen widespread environmental destruction due to galamsey. The sitting NPP MP, Joseph Osei-Owusu, is part of the leadership of the party, making it difficult for local authorities to tackle illegal miners linked to political figures.
The Ashanti Region is not only a stronghold of the NPP but also home to some of the wealthiest and most powerful individuals in the party like the Ashanti regional chairman. Allegations of illegal mining activities involving these influential figures, as exposed by Prof. Frimpong-Boateng, raise serious concerns about the government’s willingness to stop galamsey when party members are implicated.
2. Eastern Region: Ground Zero for Galamsey
The Eastern Region, another key NPP stronghold, is ground zero for illegal mining in Ghana. Towns like Kyebi, Atiwa, and Akim Oda are heavily affected by galamsey, leading to the destruction of forest reserves and contamination of rivers like the Birim.
• Kyebi: The hometown of President Nana Addo Dankwa Akufo-Addo, Kyebi has become a symbol of the galamsey menace. Despite the president’s pledge to stop illegal mining, Kyebi remains a hotspot for galamsey. The sitting NPP MP for Abuakwa South, Samuel Atta Akyea, has been unable to significantly mitigate the impact of illegal mining in the area.
• Atiwa: This district is home to the Atiwa Forest, one of Ghana’s most significant ecological sites. Despite its environmental importance, illegal mining continues unabated. The sitting NPP MPs for Atiwa East and Atiwa West have not been able to control the situation, even though these areas are crucial for the party’s electoral success.
• Akim Oda: Another major area affected by illegal mining in the Eastern Region, Akim Oda has seen severe environmental degradation. NPP MP Alexander Akwasi Acquah faces immense pressure to deal with the issue, but his efforts have been overshadowed by the political dynamics at play.
The Eastern Region’s status as an NPP bastion complicates the fight against galamsey, as local party figures often have vested interests in the mining sector. With party officials and MPs deeply entrenched in these areas, it is no surprise that efforts to stop illegal mining have failed.
3. Western Region: A Strategic but Endangered Stronghold
The Western Region, rich in mineral resources, has become another area where galamsey is rampant. Districts like Tarkwa-Nsuaem, Prestea-Huni Valley, and Wassa Amenfi are particularly affected.
• Tarkwa-Nsuaem: Known for its long history of gold mining, Tarkwa has been overrun by illegal miners. The sitting NPP MP, George Mireku Duker, has come under fire for his perceived lack of action in combating galamsey. The area’s economic reliance on mining makes the situation even more complicated, with local miners often protected by political figures.
• Prestea-Huni Valley: This constituency, which also has an NPP MP, Robert Wisdom Cudjoe, has seen an escalation of illegal mining activities. The destruction of rivers and forests in this region is a direct result of unchecked galamsey operations, which continue despite government interventions.
• Wassa Amenfi: With its vast mineral resources, Wassa Amenfi has become a target for illegal miners. NPP MPs for the area face difficulties in stopping the destruction of natural resources, with party members accused of either engaging in or supporting illegal mining.
The Western Region is a strategic stronghold for the NPP due to its mineral wealth, but the rampant galamsey in the area puts both the environment and the party’s credibility at risk.
4. Central Region: Galamsey in Cape Coast and Beyond
The Central Region is another area deeply affected by galamsey, particularly in districts like Upper Denkyira and Cape Coast.
• Upper Denkyira: This district has been severely affected by illegal mining, with rivers and forests suffering from pollution and deforestation. The sitting NPP MP, Samuel Nsowah-Djan, has been criticized for not doing enough to stop galamsey in his constituency.
• Cape Coast: Even though Cape Coast is more urbanized, illegal mining operations in nearby areas have resulted in environmental degradation. The region’s NPP MPs face immense pressure from local communities to address the situation, but little has changed.
The NPP’s Involvement in Galamsey
The galamsey crisis in Ghana has been exacerbated by the deep entanglement of the New Patriotic Party (NPP) in illegal mining activities, particularly in its strongholds like the Ashanti, Eastern, and Western Regions. High-profile figures, including NPP Women’s Organiser Kate Gyamfua, whose excavators were destroyed by a task force, and Ashanti Regional Chairman Bernard Antwi-Boasiako (Chairman Wontumi), whose Akonta Mining Company was caught engaging in galamsey despite a ban, highlight the party’s involvement. Even District Chief Executives like the one in Bosome Freho, caught red-handed in illegal mining, were let off the hook by President Akufo-Addo. Meanwhile, Speaker of Parliament Alban Bagbin warned MPs against accepting money from illegal miners for campaign funds, and Asantehene Otumfuo Osei Tutu II has taken action by destooling chiefs involved in galamsey, though the government has yet to arrest or prosecute them. As Prof. Kwabena Frimpong-Boateng revealed, many NPP officials at all levels are implicated in galamsey, using their political influence to avoid accountability. This pervasive corruption explains why the government’s efforts to stop illegal mining have failed, despite President Akufo-Addo’s pledge to put his presidency on the line. The ongoing crisis makes clear that the NPP’s leadership is unable or unwilling to truly combat galamsey, and Ghanaians must demand change by rejecting the party’s approach to this issue.
Environmental and Economic Disaster
Ghana is at a critical juncture. The ongoing galamsey activities are wreaking havoc on the country’s environment. Rivers that were once a source of drinking water for many communities have turned brown with toxic chemicals, while acres of forest land have been ravaged. These environmental consequences have a direct impact on public health and Ghana’s ability to sustain its agricultural sector, especially for cocoa production.
The economic consequences are equally dire. Illegal mining operations siphon millions of dollars from the country, money that could be invested in public services like healthcare, education, and infrastructure. Instead, it ends up in the pockets of a few individuals, both in Ghana and abroad, while the majority of Ghanaians suffer from the fallout of environmental degradation and economic instability.
Why Voting Out the NPP is the Only Solution
The evidence is clear: the NPP government has failed to stop galamsey because it has been compromised at the highest levels. A vote for Dr. Mahamudu Bawumia, the current Vice President and NPP presidential candidate, would only reinforce the status quo. Dr. Bawumia has been an integral part of the current administration, which has presided over the worsening galamsey situation. His election would mean more of the same – continued environmental destruction, economic exploitation, and a deepening of the current crisis.
Voting out the NPP government is the only way to send a clear message that Ghanaians will no longer tolerate the looting of their natural resources by a privileged few. A new government with fresh leadership and a genuine commitment to fighting illegal mining is the only path forward for the country.
Conclusion
The continued prevalence of galamsey in NPP strongholds highlights a troubling conflict of interest within the ruling party. With sitting MPs and party officials deeply involved in illegal mining, it is clear that the NPP lacks the political will to end the crisis. A vote for Dr. Mahamudu Bawumia in the upcoming elections would only reinforce the status quo, perpetuating the environmental degradation and economic losses caused by galamsey.
To truly protect Ghana’s forests, water bodies, and future, Ghanaians must vote out the NPP. Only with new leadership untainted by the interests of illegal miners can the country hope to end the galamsey menace and restore its natural resources.
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