Posted on February 20, 2025
Ghana, once celebrated as the “Black Star” of Africa, has faced significant economic challenges in recent years. In 2023, the nation’s GDP growth was a modest 2.9%, reflecting the lingering effects of macroeconomic imbalances from the previous year (World Bank, 2024). Inflation, which peaked at 54.1% in December 2022, declined to 23.2% by December 2023, yet remained elevated, affecting the purchasing power of citizens (World Bank, 2024). The overreliance on exporting raw materials, such as gold and cocoa, without significant value addition has limited economic diversification. In 2022, gold exports accounted for approximately 12.3% of Ghana’s GDP (World Bank, 2024). However, the benefits have not been equitably distributed, and industrial growth remains sluggish. Unemployment rates have been a concern, with the total unemployment rate at 3.6% in 2023 (World Bank, 2024). Despite these challenges, Ghana’s abundant natural resources and strategic geographic location present significant opportunities for economic revitalisation. The nation’s youthful population, with a median age of approximately 21.5 years, is poised to drive innovation and growth, provided there is a strategic vision to harness these assets effectively (World Bank, 2024).
Volta Lake, the largest artificial reservoir in the world by surface area, covering approximately 8,502 square kilometres, is a significant yet underutilised asset in Ghana’s economic development agenda (Wikipedia, 2024). While it currently serves critical functions such as hydroelectric power generation and inland transportation, its true economic potential remains largely untapped. Geological studies have confirmed that the Volta Basin contains rich deposits of minerals, including gold, diamonds, copper, lead, iron ore, and oil. Additionally, it is estimated that approximately 146,000 tons of mineral matter, including gold, are deposited annually into the lake from rivers such as the Black Volta. The strategic and sustainable extraction of these resources presents a transformative opportunity for Ghana’s economic growth. In establishing processing facilities for extracted minerals, the country can promote industrialization, create employment opportunities, and drive technological advancements in mining and mineral refining. Moreover, Ghana’s export revenues could significantly increase, given the rising global demand for strategic minerals and natural gas, positioning the country as a key supplier in international markets. Beyond economic gains, dredging activities will play a crucial role in improving infrastructure, enhancing inland water transportation, mitigating flooding risks, and supporting agricultural irrigation systems, which are essential for ensuring national food security. Additionally, a well-structured approach to mineral extraction can attract both domestic and foreign investors, fostering sustained economic development. With a comprehensive and transparent investment framework, Ghana can maximize the potential of Volta Lake’s mineral wealth while maintaining environmental and social sustainability.
Realizing the full potential of Volta Lake requires a fundamental shift in governance, economic planning, and national development priorities. The transformation of this vital resource into an economic engine demands visionary leadership that prioritizes long-term national prosperity over short-term political interests. Policymakers must adopt a strategic approach to resource management, ensuring that the benefits of mineral extraction are equitably distributed among all Ghanaians rather than serving the interests of a select few.
