A senior research fellow, Leslie Mensah, has called for a reset in Ghana’s revenue mobilisation strategy, particularly within the extractive sector, stressing that inadequate revenue generation is undermining the government’s development programmes.

Presenting his analysis, Mr. Mensah recommended that Ghana move away from the current concession regime and instead adopt Production Sharing Agreements (PSAs), which, he argued, have proven to generate higher revenues and foreign exchange inflows for resource-rich countries.

“Production sharing agreements have been shown to result in more substantial revenue generation and greater foreign exchange inflows, which can strengthen the economy on a more sustainable basis,” he said.

He added that active state participation in the extractive industry would allow Ghana to exercise greater control over its natural resources, reducing reliance on third-party institutions to manage and market the country’s mineral produce.

Mr. Mensah criticised the government’s Gold for Development programme, arguing that it fails to address Ghana’s fiscal revenue challenges.

According to him, the programme treats gold purely as a business commodity without ensuring majority state ownership or revenue capture for the country.

The research fellow outlined three major steps the government should take:

Switch to Production Sharing Agreements – Transition from concession regimes to PSAs in the extractive sector to increase state revenues and foreign exchange inflows.

Avoid Hasty Return to International Bond Markets – Refrain from rushing back to international borrowing as a short-term fix to fiscal challenges, as this risks deepening debt vulnerabilities and triggering another crisis.

Ensure Transparent Fiscal Reporting – Fully disclose and account for fiscal support provided to the financial sector in national accounts to present a complete picture of Ghana’s fiscal position.

Mr. Mensah stressed that implementing these measures would not only strengthen Ghana’s revenue base but also place the economy on a more sustainable growth path.