Ghana’s Salt Wars: How a Mining Giant’s Monopoly Sparked Community Crisis in West Africa’s Largest Salt Basin
A gradual but heated debate seems to be ongoing in Ghana over what some call the controversial Electrochem Project at the Ada Songor Lagoon, the largest salt-producing potential in West Africa. Third World Network-Africa (TWN-Africa) has presented a damning report to Parliament, alleging irregularities, social upheaval, and environmental risks tied to the project.
The Songor Lagoon, central to the livelihoods of the Ada communities for centuries, has seen decades of contestation between traditional leaders, local communities, and large-scale commercial interests. In 1992, PNDC Law 287 aimed to resolve these tensions by creating an inclusive framework for salt production through a Master Plan. The plan sought to balance industrial and small-scale salt production while preserving local livelihoods and restoring the lagoon’s ecological health.
However, TWN-Africa claims the government veered sharply away from this vision. The organization’s submission to Parliament alleges that the decision to grant Electrochem a monopoly over 158.4 square kilometers of the lagoon was not only legally questionable but also counterproductive to the objectives of PNDC Law 287.
In the shimmering heat of Ghana’s coastal region, the vast expanse of the Ada Songor Lagoon stretches toward the horizon – a crystalline testament to West Africa’s largest salt potential. But beneath its glittering surface lies a story of corporate ambition, community resistance, and a battle over natural resources that has turned increasingly violent.
Since November 2020, when Electrochem Ghana Limited secured an unprecedented monopoly over 158.4 square kilometers of the lagoon, this traditionally communal resource has become the epicentre of a conflict that raises fundamental questions about resource management in Africa’s emerging economies.
Electrochem, majority-owned by Ghanaian businessman Mr. Daniel McKorley’s McDan Group, promises to revolutionize Ghana’s salt industry. The company’s ambitious plans project a dramatic production increase from the current 60,000 tons to 3 million tons annually within five years, positioning Ghana as a major player in the regional salt market.
“This project represents a strategic investment in Ghana’s industrial future,” the Company Executive has said, pointing to potential downstream benefits for the country’s nascent chemical industry. The company has pledged an initial investment of $75 million, with 70% coming from shareholders and the remainder from commercial loans.
Legal Quicksand
However, the comprehensive report submitted to Parliament by Third World Network-Africa (TWN-Africa) in December 2023 which NorvanReports has sighted reveals troubling irregularities in how this corporate giant secured its position. The organization argues that the very foundation of Electrochem’s monopoly contradicts PNDC Law 287 of 1992 – legislation specifically designed to ensure inclusive development of the salt industry.
“The President’s abuse of powers under PNDC Law 287 betrayed a development compact that was meant to guarantee sustainable livelihoods for local communities,” says TWN-Africa. The report details questionable processes in both the lease ratification and the divestiture of the state-owned Songor Salt Project (SSP) to Electrochem.
Particularly concerning is the revelation that Electrochem missed crucial payment deadlines in the SSP acquisition process without facing consequences. The company was required to pay a 10% commitment fee by August 31, 2021, but only made the payment on September 8, 2021. Despite this breach, the sale proceeded without explanation the document presented to parliament stated.
The report also criticizes Parliament and regulatory bodies such as the Minerals Commission for failing to ensure oversight and due diligence during the approval process.
Community And Environmental Concerns
The human impact of this corporate takeover has been severe. On November 6, 2023, tensions reached a tragic climax when Korletey Agormeda Wormenor, an unarmed salt winner, was fatally shot during a confrontation with security forces at Bonikope, one of the many villages along the lagoon.
“Salt winning has been our way of life for over 400 years,” says Local Community Leader. “Now we are treated as criminals on our own ancestral lands.” The company’s business plan, reviewed by TWN-Africa, explicitly aims to “get the artisanal salt producers out of the way,” describing their traditional practices as “uneconomic.”
Environmental experts have raised alarms about the project’s ecological implications. Environmental risks feature prominently in the TWN-Africa critique. The Electrochem project plans to produce up to three million tons of salt annually, a scale that generates significant byproducts known as bitterns. While bitterns can be processed into valuable chemicals, Electrochem’s current approach involves dumping them into the sea, raising concerns over marine pollution and ecological damage.
The report compares this practice unfavorably with the Master Plan, which called for public investment in infrastructure to restore the lagoon’s natural salinity and flow regimes, disrupted by the construction of the Akosombo and Kpong dams.
Social Fallout
The fallout from the project has led to violent confrontations between Electrochem security personnel, aided by police, and the local communities. The death of a community member, Korletey Agormeda Wormenor, in 2023 during clashes highlights the escalating tensions. TWN-Africa notes that the exclusion of local salt producers and inadequate community engagement has worsened the situation.
The report further accuses Electrochem of favoring traditional leaders and elites over broader community representation, a strategy that has deepened divisions within Ada.
Alternative Vision
The conflict at Songor represents more than a local dispute; it exemplifies the broader challenges facing African nations as they balance industrial development with community rights and environmental protection.
The TWN-Africa report points to an alternative path forward through the implementation of the original 1991 Master Plan for the lagoon. This framework envisioned a mixed-use approach, accommodating both industrial-scale operations and traditional salt winners while promoting sustainable development of the Ada region.
“The Master Plan provides a framework for multiple partnerships – between public and private investment, between large and small-scale salt producers,” explains Development Expert. “This inclusive approach could drive industrialization while preserving community livelihoods.”
Corporate Response and Government Silence
Electrochem has attempted to address community concerns by establishing some community salt pans and proposing to buy salt from local producers. However, critics argue these measures are insufficient and fail to address the fundamental issue of resource control.
The government’s response to the mounting crisis has largely been silence, even as police and military presence in the area intensifies. Regular raids on communities and allegations of human rights violations have become commonplace, according to local reports.
Looking Forward
As Parliament reviews the TWN-Africa report, the stakes could not be higher. The outcome could set precedents for how Ghana, and perhaps other African nations, manage the delicate balance between attracting large-scale investment and protecting community rights in natural resource exploitation.
The report recommends revoking Electrochem’s leases, investigating the divestiture process, and implementing the original Master Plan. It also calls for an immediate end to the militarization of the conflict and an independent probe into policing practices around the lagoon.
Meanwhile, in the villages along the Songor Lagoon, traditional salt winners continue their precarious work, their future hanging in the balance as Ghana grapples with questions of development, justice, and the true cost of progress.
The Songor Lagoon controversy underscores broader challenges in Ghana’s natural resource management. While large-scale investments can spur economic growth, they often come at the expense of local communities and environmental health. As Ghana positions itself as a hub for industrialization, finding a balance between corporate interests, community needs, and sustainable practices will remain a pressing concern.
For now, the fate of the Songor Lagoon remains uncertain, as Parliament grapples with TWN-Africa’s findings. The Electrochem project, once heralded as a catalyst for economic transformation, risks becoming a flashpoint for conflict and environmental degradation.
The Songor Saga in Numbers:
- Project area: 158.4 square kilometers
- Planned production: 3 million tons annually by year 5
- Current production: 60,000 tons
- Affected communities: Over 70 towns and villages
- Initial investment promised: $75 million
- Waste production at full capacity: 9 million tons of bitterns annually
- Traditional livelihood history: Over 400 years
The necessity of commercial salt mining should not be compromised. The artisans community salt wining should be integrated into the current commercial mining. The potential forex to be derived from the commercial exploitation of the salt resource should be our paramount goal as a nation.. We as a country should ensure that the local folks who subsist on salt winning are not impoverished. During the PNDC/NDC era, the Songor Lagoon , was given to GNPC to develop. Let’s look at the master plan proposed by GNPC and see how the communities and towns in the catchment of Songor Lagoon were to be incorporated into the commercial exploitation of the resource but they failed deliver.. let’s find an inclusive development of the Ada Songor Lagoon.