The Minerals Agreement between Ghana and the United States

Isreal

……. A New Vision for Economic Independence and Accelerated Development in Africa

Opinion: By Shmuel Shay, Entrepreneur and Economic Advisor for the Abraham Accords

In the past decade, Ghana has stood at a crucial economic crossroads. The nation is blessed with vast natural resources  gold, manganese, bauxite, lithium, and other rare metals  yet a large part of its population continues to suffer from poverty, poor infrastructure, and an underutilized agricultural system. President Donald Trump’s new initiative for economic partnerships with African nations presents an innovative model: “Minerals for Development.”
Within this framework, the Government of Ghana can leverage its natural wealth to finance, without borrowing, large – scale projects in infrastructure, education, healthcare, and advanced agriculture.
This article examines in depth whether such an approach is suitable for Ghana, what conditions are necessary for its success, and how the minerals agreement could become a foundation for true economic independence and sustainable growth that reshapes the nation’s future.

The proposed framework envisions Ghana allocating a fixed percentage of its natural resource revenues toward a national portfolio of infrastructure, healthcare, education, and smart agriculture projects. Funding and implementation would be led by the U.S. administration and its commercial partners, while payments would be made through tradable mineral and metal commodities produced in Ghana. The model could accelerate growth, generate quality employment, enhance agricultural productivity, and strengthen economic sovereignty. However, it requires mechanisms for transparency, fair pricing, risk management for commodity fluctuations, environmental safeguards, and strict adherence to measurable outcomes. The overarching recommendation is “yes, under conditions” supported by a comprehensive protection framework and phased implementation roadmap as outlined below.

Why “Minerals for Development”?

1. Immediate value vs. deferred cash. Critical projects receive funding and execution now, while payments are spread over time based on existing assets.
2. Accelerating growth – driving projects. Roads, electricity, water, communications, healthcare, and education all raise productivity across sectors.
3. Preserving sovereignty. Ghana pays from its own resources under a mutually agreed and protected formula, avoiding dependence on costly loans or politically conditioned aid.
4. Transfer of knowledge and technology. Agreement terms would mandate local content, training, and the creation of domestic value chains in agriculture and industry.

Scope and Proposed Project Portfolio

Core Infrastructure

• Reliable electricity for impoverished and agro – industrial areas.
• Water, sewage, and wastewater recycling for agriculture.
• Agricultural roads, cold – chain logistics, and sorting centers.
• Digitization: broadband internet, regional data centers, GovTech services.

Social Services

• Construction and upgrading of hospitals and community clinics.
• Building and renovation of schools, teacher training, and STEM laboratories.

Agriculture and Food Production

• Focused projects in cocoa, mango, avocado, cashew, moringa, and sugarcane.
• Vertical agriculture complexes integrating fish, poultry, goats, sheep, and cattle farms.
• Local processing plants: premium cocoa, seed oils, leaf powders, juices, animal premixes, ethanol from sugarcane.
• Cold chains, smart logistics, and digital trading platforms for farmers.

“Rapid – to – Build” Principle

• A portfolio of small, modular projects deliverable within 6–18 months per region.
• Supported by regional anchor projects to stabilize energy, logistics, and healthcare networks.

Payment Structure and Financial Safeguards

1. Mineral basket instead of a single resource. A mix of gold, bauxite, manganese, lithium, and others according to real output diversifying risk.
2. Transparent pricing formula. Monthly price averages based on global indices, with floor and ceiling rates protecting both sides.
3. National SPV. A dedicated Ghana–U.S. joint entity managing cash flow, contractual extraction, and contractor payments by milestones.
4. Escrow accounts. Payments released only upon verified quality certification, network connection, measured output, and engineering audit.
5. Hedging volatility. Use of simple derivatives and a stabilization fund to smooth temporary price drops.
6. Implicit debt ceiling. Annual and cumulative caps on resource – based payments to protect future national budgets.

Governance, Transparency, and Performance Metrics

• Joint Steering Committee comprising Ghanaian cabinet members and a U.S. project division. Public minutes, schedules, and quarterly progress reports.
• Independent engineering audit office to ensure quality, safety, and compliance with standards.
• Mandatory success indicators: electricity connections, kilometers of paved roads, hospital beds, school retention rates, yield per hectare, export income, job creation.
• Local content target: 40–60% local procurement and services within five years, supported by training programs.
• Open data policy: price dashboards, non – sensitive commercial agreements, and real – time performance on a public portal.

Practical Agricultural Planning by Sector

1. Cocoa: Genetic upgrade, smart irrigation, controlled shading, biological pest control, regional fermentation and roasting hubs, certification for direct trade.
2. Mango and Avocado: Intensive orchards, disease monitoring, optimal sorting, exports for fresh and processed markets.
3. Cashew and Moringa: Shelling plants, oil and powder processing for food and supplement industries.
4. Sugarcane: Ethanol, cogeneration power, brown sugar, and high – value derivatives.
5. Vertical Farming: Modular urban and peri – urban units for fast – growing vegetables, water recycling, and automated monitoring.
6. Livestock and Fisheries: Hatcheries, optimized feed, preventive veterinary care, water – quality control, and ecological aquaculture.

Key Risks and Mitigation

1. Commodity price volatility: Managed through diversified mineral basket, price bands, derivatives, and a stabilization fund.
2. Hidden debt: Fixed percentage ceilings, multi – year phasing, mandatory parliamentary oversight, and public reporting.
3. Overcommitment of resources: Annual stress tests and formula adjustments for production shortfalls.
4. Environmental and community risks: Early environmental licensing, community hearings, land restoration, open monitoring.
5. Corruption or underperformance: Escrow – based payments, milestone verification, third – party auditing, penalties for delays.
6. Geopolitical exposure: Retain right to diversify commercial partners and regional cooperation to balance dependencies.

Recommended Legal Framework (Summary)

• State – level treaty ratified by Ghana’s Parliament.
• Project agreements (EPC + O&M) with performance targets, warranties, performance bonds, and insurance.
• Mineral supply contracts with pre – agreed volumes and quarterly adjustment mechanisms.
• Dispute resolution: neutral international arbitration alongside Ghanaian jurisdiction for local matters.
• Proactive transparency: publication of non – commercial summaries of subcontracts and operational reports.

Expected Public Benefits

• Broader access to electricity, water, healthcare, and education within a few years.
• Sharp rise in agricultural productivity and farmers’ income through local processing and cold chains.
• Expansion of skilled employment, vocational training, and rural–urban entrepreneurship.
• Strengthening economic sovereignty Ghana funds its future from its own resources, not foreign aid.

Policy Verdict

It is in Ghana’s best interest to move forward with a Minerals – for – Development Agreement with the United States, provided that the deal is built on transparency, diversified mineral baskets, fair pricing, environmental safeguards, and strict performance metrics. Emphasis should be placed on small, fast – track projects alongside regional anchor initiatives, with high local content and structured knowledge transfer.

By doing so, Ghana can finance its development from its own resources, reinforce its independence, and deliver tangible results to its citizens within a short time.