One of the most popular things that is gaining attention during Prime Minister Narendra Modi’s recent Ghana trip is the African country’s vast gold reserves and its role as Africa’s top gold producer.
Historically as the “Gold Coast,” Ghana produces about 140.6 tonnes of gold every year and earns about $11-12 billion annually from gold exports. For those unversed, Ghana is Africa’s largest gold producing country and it is at the sixth place in terms of gold production in the whole world.
Details on Ghana’s gold sector
The recent Ghana visit of PM Modi highlights India’s interest in deepening trade ties with resource-rich African nations. However, readers should note that Ghana’s gold sector is facing challenges like illegal mining, environmental damage, and regulatory gaps. The government is working on reforms, including restricting foreign involvement in artisanal mining and setting up a national refinery to boost domestic value addition-areas where India may offer cooperation or investment.
Secrets behind Ghana’s gold reserves
Ghana’s rich gold reserves originate from ancient volcanic activity in the Birmian Greenstone Belt, with gold deposited in rocks and riverbeds over billions of years.
India, Ghana elevate ties to comprehensive partnership
India and Ghana have elevated their ties to the level of comprehensive partnership, with Prime Minister Narendra Modi and Ghanaian President John Dramani Mahama resolving to expand the bilateral ties in a range of areas, including defence, food security and pharmaceuticals.
In his media statement shortly after the talks with Mahama on Wednesday, Prime Minister Modi said both sides have set a target of doubling the two-way trade in the next five years and that India is not just a partner but a co-traveller in Ghana’s development journey.
The delegation-level meeting between the two leaders took place hours after Modi arrived in this capital city of the West African country on the first leg of his five-nation tour. India is among the top trading partners of Ghana and is the largest destination for Ghanaian exports, driven largely by India’s import of gold.
Ghana is undergoing a major economic restructuring and PM Modi assured the country of all possible assistance in this regard.