Accra — Ghana’s extractive sector is undergoing significant transformations, with the handover of the Damang Mine to a wholly Ghanaian-owned firm marking a milestone in local ownership, even as gold exports surge to record levels. However, the oil sector tells a different story: crude production has fallen for the sixth consecutive year, forcing government intervention to shield consumers from rising fuel prices.
The developments reflect the diverging fortunes of Ghana’s two major commodity sectors. Gold is powering an economic recovery, bolstering foreign exchange reserves and supporting the cedi. Oil, by contrast, is in structural decline, with production volumes halving since 2019 and petroleum revenues dropping sharply.
Here is your complete Accra Street Journals” roundup of the key gold and oil sector developments.
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Gold Sector: National Ownership and Record Growth
Damang Mine Takeover: Gold Fields Hands Over to Engineers and Planners
Mining giant Gold Fields officially handed over control of the Damang Mine to the Ghanaian government on April 18, 2026, after the expiration of its mining lease . The government immediately transferred operational control to Engineers and Planners Limited (E&P), a wholly Ghanaian-owned firm led by businessman Ibrahim Mahama.
The handover ceremony was held at the mine site in the Western Region, where the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, performed the formal transfer . Speaking after the ceremony, Ibrahim Mahama pledged his commitment to demonstrating that Ghanaians are capable of investing in themselves.
“I would say that, look, if we all put our minds together, this is a success story. And the plan I have for Damang Mine is not a joke. I just want to prove that we can invest in ourselves in this country,” he said .
The Path to Takeover
Discussions about the transition began about a year ago when Gold Fields’ mining lease, under which it had operated for about two decades, expired . The government, as part of its commitment to boosting local participation, declined to renew the lease and ordered the start of a competitive tender process.
About four companies submitted bids before the March 31 deadline, which were reviewed by the Minerals Commission under the Minerals and Mining (Licensing) Regulations, 2012 (LI 2176) . Bidders were required to demonstrate strong financial capacity, including access to at least $500 million in funding, as well as technical expertise and operational readiness.
Engineers and Planners met these requirements and secured the highest evaluation score, emerging as the winning bidder .
Infrastructure Ambitions
Mahama outlined ambitious infrastructure plans for the mine and surrounding communities, including the construction of a concrete road linking Damang to Cape Coast within two years and the development of an airport within six months .
“We’ve applied for that mine to have an airport. And that mine, within six months, will have an airport such that we can fly to Accra easily from there,” he said .
He also disclosed that Engineers and Planners had secured significant financing for the operation, including commitments from international and local banks. “One has given us 650 million, another 600 million,” he noted, referring to financing facilities .
Mahama further pledged that revenues from the mine would be reinvested locally to support social and economic development, including the construction of hospitals and sports infrastructure .
Export Strength: Gold Surges to $4.3 Billion in February 2026
Ghana’s gold exports reached $4.3 billion in February 2026, nearly doubling from $2.3 billion in the same period last year, according to Standard Bank Research .
The surge has been credited to the Bank of Ghana’s domestic gold purchase programme, which has bolstered foreign exchange reserves to approximately $12.5 billion, equivalent to more than five months of import cover .
Gold has become an important stabilising force for Ghana’s economy,” said Jibran Qureishi, Head of Africa Research at Stanbic Bank. “It is helping offset pressures from oil imports while sustaining a strong current account position under challenging global conditions” .
The foreign exchange reserves improvement has supported relative stability in the cedi and strengthened investor confidence despite global market volatility.
Government Targets $20 Billion Annually from Gold Reforms
Finance Minister Cassiel Ato Baah Forson announced in February 2026 that the government is implementing new policy measures aimed at boosting gold reserves and increasing foreign exchange inflows .
Under the new arrangement, the government will invoke its legal right to purchase at least 20 per cent of gold output from large-scale mining firms. This is expected to translate into a minimum of 0.57 tonnes of gold per week .
The gold acquired will be in doré form and processed locally to promote value addition. Payments will be made in cedis at the prevailing interbank exchange rate, with discounts based on volume .
Artisanal Reforms: Government Targets 127 Tonnes Annually
The government is implementing sweeping reforms to channel artisanal gold into official trade and combat smuggling losses. The Ghana Gold Board (GoldBod) will implement measures to purchase a minimum of 2.45 tonnes of gold weekly from small-scale miners through official channels .
Over the next three years, the board aims to buy about 127 tonnes of ASM gold annually. At current global prices, this is expected to generate more than $20 billion in foreign exchange each year .
Effective March 2026, GoldBod assumed full responsibility for signing off-take agreements and managing the sale of all ASM gold it procures, positioning the Board as the central trading authority for small-scale gold .
To discourage smuggling, the Board may introduce price incentives, including purchases at spot world market prices and performance-based bonuses for licensed miners .
Chamber of Mines Rejects “46.2% Retention” Claim
On April 22, 2026, the Ghana Chamber of Mines publicly rejected claims that the mining sector retains less than half of its export value domestically, calling the widely cited 46.2 per cent retention figure “methodologically flawed .
Addressing participants at the Mining for Development Forum in Goaso, CEO Dr. Kenneth Ashigbey explained that the 46.2 per cent ratio compares in-country expenditure of US$5.5 billion—covering only large-scale mining companies that are members of the Chamber—against total mineral export earnings of US$11.9 billion which include output from all producers, particularly small-scale miners .
“This is a classic scope mismatch: a partial measure placed over a total, producing a figure that systematically understates the sector’s domestic contribution,” he said .
Dr. Ashigbey noted that the small-scale mining segment, which industry data suggest accounted for about 40 per cent of the country’s gold exports in 2024, is excluded from the expenditure side of the calculation while being included in the export denominator .
Data presented at the forum showed that between 2014 and 2024, the sector generated more than US$51.15 billion in mineral revenues, of which about US$37.6 billion—representing 73.6 per cent—was returned to the country .
Oil Sector: Declining Production and Price Relief
Production Decline: Sixth Consecutive Year of Falling Output
The Public Interest and Accountability Committee (PIAC) reported on April 20, 2026, that crude oil production fell to 37.3 million barrels in 2025, a significant drop from 48.24 million barrels in 2024 .
This marks the sixth consecutive year of decline, with production falling from a peak of 71.4 million barrels to 37.3 million barrels in 2025, representing a compounded annual average decline of 9 per cent .
Presenting highlights of the report, PIAC Chairman Richard Ellimah called on the government to deepen collaboration with the Petroleum Commission to attract investment into the petroleum sector and reverse the production downturn.
“We recommend that the government, through the Petroleum Commission, develop a framework to improve investment in existing producing fields, particularly the TEN field, where production has underperformed,” he said .
Total petroleum revenue declined significantly from $1.3 billion in 2024 to $770 million in 2025, a drop of 43 per cent .
Fuel Price Intervention: Government Absorbs GH¢2.00 Per Litre on Diesel
As of April 16, 2026, the government is absorbing GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol to cushion consumers against global price surges .
The cabinet-approved measure was introduced in response to rising international petroleum prices, which had significantly driven up ex-pump prices in Ghana . The temporary intervention will remain in effect for one month, during which government will continue to monitor global oil market trends and assess the need for further policy adjustments.
Commercial drivers in Koforidua expressed mixed reactions to the reduction. Mr George Bekoe, First Trustee of the Koforidua–Akim Oda Branch of the GPRTU, commended government for the prompt intervention, noting that stabilising fuel prices would help manage fare expectations .
However, a commercial driver who spoke on condition of anonymity expressed dissatisfaction with the scale of the reduction. He said poor road conditions, particularly potholes, increased drag and fuel consumption, making the reduction inadequate. “I expected at least a GH¢3 reduction,” he said .
Licensing Overhaul: COMAC Calls for Scrapping of Inactive Licenses
On April 22, 2026, the Chamber of Oil Marketing Companies (COMAC) called for the immediate scrapping of inactive licenses to stabilise the downstream sector following a period of over-licensing and “price wars” .
Ghana currently has over 200 licensed oil marketing and LPG companies, yet at least 53 of them are inactive or inconsistent in lifting products . These dormant licences distort competition and undermine regulatory discipline.
COMAC estimates that about 15 per cent of petroleum volumes are handled by operators who do not fully comply with regulatory requirements, creating unfair competition and reducing confidence in enforcement .
The Institute for Energy Security (IES) has warned that without stronger enforcement and compliance monitoring, the sector risks a “race to the bottom,” where non-compliance, revenue leakages, and consumer harm proliferate .
Gas Operations: Ghana Gas Announces Full Resumption
The Ghana National Gas Company announced the full resumption of operations on April 21, 2026, following a temporary emergency shutdown on April 15 .
Management explained that the shutdown was triggered by a fault in the software controlling the fuel gas supply and burner management system, adding that such technical issues are not uncommon in complex industrial operations and are typically resolved through established engineering protocols .
The company disclosed that it is currently processing about 120 million standard cubic feet of raw gas per day, ensuring continued support for the country’s energy supply needs .
The swift resolution of the fault, according to management, highlights the competence and resilience of its technical and engineering teams .
Outlook From ASJ
The diverging trajectories of Ghana’s gold and oil sectors present both opportunities and challenges.
Gold as an economic stabiliser: With exports surging to $4.3 billion and reserves at $12.5 billion, gold is providing a crucial buffer against external shocks. The Damang takeover represents a test of Ghanaian capacity to operate large-scale mines.
Oil in structural decline: Six consecutive years of falling production have reduced petroleum revenues by 43 per cent. Attracting investment to reverse this trend is an urgent priority.
Consumer relief: The fuel price intervention provides temporary relief, but unsustainable subsidies cannot be maintained indefinitely. Structural reforms in the downstream sector are needed.
For policymakers, the message is clear: gold is rising, but oil is falling. Managing the transition will require strategic investment, regulatory discipline, and careful fiscal planning.
Frequently Asked Questions (FAQs)
1. Who now operates the Damang Mine following the Gold Fields handover?
Gold Fields officially handed over control of the Damang Mine to the Ghanaian government on April 18, 2026. The government immediately transferred operational control to Engineers and Planners Limited (E&P), a wholly Ghanaian-owned firm led by businessman Ibrahim Mahama .
2. How much did Ghana’s gold exports reach in February 2026?
Gold exports reached $4.3 billion in February 2026, nearly doubling from $2.3 billion in the same period last year. The surge is credited to the Bank of Ghana’s domestic gold purchase programme, which has bolstered foreign exchange reserves to approximately $12.5 billion .
3. What is the government’s target for artisanal gold purchases?
The Ghana Gold Board aims to purchase a minimum of 2.45 tonnes of gold weekly from small-scale miners, targeting about 127 tonnes of ASM gold annually. At current global prices, this is expected to generate more than $20 billion in foreign exchange each year .
4. Why did the Chamber of Mines reject the 46.2% retention claim?
The Chamber of Mines called the 46.2 per cent retention figure “methodologically flawed,” arguing it compares in-country expenditure of large-scale miners (US$5.5 billion) against total mineral export earnings including small-scale output (US$11.9 billion). The Chamber says the appropriate retention rate is over 70 per cent .
5. How much did Ghana’s crude oil production fall in 2025?
Crude oil production fell to 37.3 million barrels in 2025, down from 48.24 million barrels in 2024. This marks the sixth consecutive year of decline, with petroleum revenue dropping 43 per cent to $770 million .
6. What fuel price intervention has the government introduced?
The government is absorbing GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol to cushion consumers against global price surges. The temporary intervention will remain in effect for one month
Source: ASJ’S Commodities Live Data
Last Updated on April 22, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
