The Ghana Mine Workers Union is calling for the investment of pension funds in the mining sector to help boost the sector and increase local returns.

Citing some developed countries as examples, the Union argues that this would provide the needed resource to enable local businesses to venture into the mining sector.

Speaking to Citi Business News, the General Secretary of the Ghana Mine Workers Union, Abdul-Moomin Gbana believes the proposed alternative creates the opportunity for the long-term capital required to turn the fortunes of the country’s mining sector while increasing local participation.

“The Pension Fund is a huge opportunity, and it is not just an opportunity in Ghana. It is an opportunity across the globe. In other jurisdictions, particularly in the developed world, you go to Japan, most of Japan’s development has been leveraged on their pensions. Once you have the pension funds available, those pension funds could be put to productive use and that productive use definitely will lead to economic growth and by extension, economic development.”

“Mining is capital intensive and raising the needed capital within Ghana, particularly for indigenous private persons within the economy can be very tough, so we need to begin to look at long-term financing and one area we can rely on is our pensions,” he added.