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Think Tank Warns Ghana Risks ‘Another Colonial Mistake’ Without Full Control of Lithium Deposits

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Ghana’s Institute of Economic Affairs (IEA) is urging government to take a bold, interventionist step in the emerging lithium industry.

IEA wants Ghana to establish a fully state-owned Ghana Lithium Company (GLC) to control mining, processing, refining, and battery production.

The think tank argues that without decisive ownership, Ghana could once again repeat a familiar pattern — extracting minerals cheaply, exporting them raw, and receiving only scraps of the long-term value.

In a detailed communique, the IEA described the discovery of commercially viable lithium deposits, especially the Ewoyaa project in the Central Region, as “one of Ghana’s strongest chances yet” to break its dependence on foreign-controlled extraction models. The organisation warned that Ghana’s long-term economic instability — low revenue, weak industrialisation, and recurring debt crises — is tied directly to “meagre” returns from the extractive sector.

“A continuation of colonial-era agreements”

The IEA sharply criticised the current Revised Lithium Agreement with Barari DV Ghana, describing it as a modern version of old concession models that hand ownership to foreign firms while Ghana settles for royalties and minority shares.

It called on Parliament to halt ratification of the agreement, saying it “fails to comply with international frameworks Ghana has signed” and reinforces a development model that has historically weakened national economic sovereignty.

Massive long-term revenue at stake

Using Barari DV’s own projections, the IEA estimates that the Ewoyaa mine could produce 3.6 million tonnes of spodumene concentrate. If Ghana processes this domestically into lithium carbonate — instead of exporting it raw — national revenue could reach US$172.5 billion over the mine’s lifespan.

The numbers, the IEA says, make the case impossible to ignore:
“Developing the value chain becomes critical.”

It argues that Ghana should control the entire chain — from raw ore to battery manufacturing — and insists that foreign investors themselves often raise capital using Ghana’s natural resources as collateral. To support the point, the IEA highlighted the Minerals Income Investment Fund’s US$33 million investment in Ewoyaa as proof that domestic institutions can fund large-scale mining ventures.

Global lithium prices: a volatile backdrop

The push comes as lithium markets continue a steep correction. After record highs in 2021–2022, battery-grade lithium carbonate fell drastically through 2024–2025 due to oversupply and a slower-than-expected growth in electric vehicle demand.

Yet medium-term forecasts remain optimistic. Analysts expect prices to rebound from 2026 as production cuts take effect and EV demand accelerates, with some projections placing prices back in the US$15,000–US$20,000 per tonne range by decade’s end.

Why the urgency?

For the IEA, the answer is clear: Ghana cannot afford to repeat the story of gold, oil, and bauxite — exporting resources cheaply while importing finished products at high cost.

With global transitions toward renewable energy, digital infrastructure, and electric transportation, lithium is becoming one of the world’s most strategic minerals. The IEA insists this moment must not slip away.

“Lithium remains a critical mineral Ghana must mine for national benefit,” the communique stated.
“We must not give away ownership rights to foreign companies.”

As Parliament debates the revised agreement, the IEA’s warning lands with a single message: Ghana must choose between another century of low-value extraction — or a new era of industrial power built on domestic ownership.

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Ghana Nears Approval of Cannabis Licences as Country Prepares to Launch Regulated Industry

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Accra, Ghana – Ghana’s Narcotics Control Commission (NACOC) is in the final stages of reviewing applications for cannabis licences, with successful applicants expected to receive approval to begin operations soon, marking a significant milestone in the country’s efforts to develop a legal and regulated cannabis sector.

Deputy Director-General for Enforcement, Control, and Elimination, Alexander Twum-Barimah, disclosed this while speaking at the Kwahu Business Forum on Saturday.

He emphasised that the review process has been “thorough and deliberate” to ensure that only applicants who fully meet all legal, regulatory, and security requirements are granted licences. NACOC officials engaged with potential investors at the forum’s exhibition stand, providing details on various licence categories, including cultivation, processing, distribution, and export.

Mr Twum-Barimah stressed that the commission is committed to building a properly regulated industry that creates legitimate economic opportunities while maintaining strict controls to prevent misuse and illegal activities.

“The goal is to strike a balance between enabling economic development and safeguarding public health and security,” he said.

All licence holders will be subject to ongoing monitoring and compliance checks.

The development signals Ghana’s intention to harness the economic potential of cannabis through job creation, investment, and export revenue, while aligning with international best practices in regulation. Further updates on the licensing process are expected in the coming weeks.

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3 Things Ghana is Doing to Reduce Fuel Prices Amid Global Uncertainty

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Accra, Ghana – As global oil prices continue to surge due to the ongoing Middle East conflict, the Ghanaian government has announced immediate and practical measures aimed at cushioning citizens from the impact of rising fuel costs.

Following an emergency Cabinet session chaired by President John Dramani Mahama, the government outlined three key interventions focused on direct price relief, affordable public transportation, and cutting unnecessary government expenditure on fuel.

Here are the 3 major steps Ghana is taking:

1. Suspension of Selected Taxes and Margins on Fuel

Ministers of Finance and Energy have been directed to suspend certain taxes and margins in the next fuel pricing window. This temporary reduction, which will last for four weeks (subject to review based on developments in the Middle East and global crude prices), is expected to ease the burden on consumers and transporters.

2. Massive Expansion of Affordable Metro Mass Transit Buses

The Minister for Transport has been tasked with fast-tracking the deployment of 100 newly acquired Metro Mass Transit buses onto high-traffic routes across the country. These state-owned buses will maintain significantly lower fares compared to private operators, offering citizens a cheaper and more reliable alternative for daily commuting.

3. Strict Enforcement of Ban on Fuel Allocations for Government Officials

All Ministers and senior government appointees have been reminded to strictly comply with President Mahama’s earlier directive cancelling fuel allocations and allowances. This move is aimed at reducing government expenditure on fuel and demonstrating leadership in belt-tightening during these challenging times.

These interventions form part of the government’s broader strategy to protect the economy and citizens from external shocks while hoping for de-escalation in the Middle East conflict.

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Upcoming Super El Niño Threatens to Worsen Global Food Crisis Amid Iran Conflict

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Climate scientists and food security experts are warning that a powerful “super El Niño” expected later in 2026 could significantly intensify global food price pressures already heightened by the ongoing Middle East conflict involving Iran.

According to US meteorologists, there is roughly a one-in-three chance of a strong El Niño forming between October and December, while European models suggest an even higher probability of an exceptionally strong event.

A “super El Niño” occurs when sea surface temperatures in the eastern Pacific rise at least 2°C above normal. This phenomenon typically triggers extreme weather patterns, including severe droughts in key agricultural regions, which can sharply reduce crop yields for commodities such as cocoa, rice, sugar, food oils, coffee, bananas, and soy.

The timing is particularly concerning because the Iran conflict has already disrupted global fertilizer supplies and shipping routes through the Strait of Hormuz, driving up costs for fuel and agricultural inputs. Analysts say the combination of war-induced supply shocks and El Niño-driven weather extremes could create a “double squeeze” on food production and prices. The United Nations World Food Program has cautioned that prolonged conflict and elevated oil prices could push the number of acutely food-insecure people globally significantly higher.

Dawid Heyl of Ninety One noted that while the Russia-Ukraine war affected food markets, the current situation is more worrying due to its direct impact on fertilizer production and availability.

He warned that overlapping negative factors — geopolitical disruption and strong El Niño conditions — could prove especially damaging for vulnerable countries in Africa, India, Australia, Brazil, and Argentina.

Experts state that long-term resilience will require greater investment in climate adaptation, diversified supply chains, and international cooperation to protect global food security as geopolitical and climate risks increasingly intersect.

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