Dr Johnson Asiama
Dr Johnson Asiama, Second Deputy Governor of the Bank of Ghana (BoG), has called for the abolition of stability agreements in the mining sector.
This, according to him, will ensure full repatriation of the export earnings in the mining sector.
Dr. Asiama, who was speaking at the Ghana Mining Industry Awards in Accra said, “Despite our aversion to the existing stability agreements, the mining sector continues to repatriate significant amounts of its export earnings.”
He said, “From 2010 to date, the sector has repatriated about 64 percent of its total export earnings made up of 17.0 percent mandatory repatriation and 47 percent voluntary repatriation.
“I am looking forward anxiously to the day we will do away with stability agreements and obtain 100 percent repatriation, even though the current level of repatriation is commendable.”
Dr. Asiama said despite the discovery of crude oil, the minerals sector’s contribution to total exports continue to rise, averaging about 37.5 percent during the period (gold – 36.4 percent).
He said the projected revenue from gold for the year 2016 of US$3,328.0 million was exceeded in the middle of September 2016 and we are expecting export revenues of over US$4.5 billion by the end of the year.
“It is not only in the external sector that the managers of the economy feel the impact of the mining sector. The sector is also the leading taxpayer to the fiscal authorities, contributing over one billion Ghana cedis each year in corporate taxes, royalties, PAYE, VAT and dividends. The contribution in 2015 was GH?1.56 billion”.
Notwithstanding these achievements, the Deputy Governor said, “I believe that as a country we should be taking value addition in the industry more seriously.
“It is expected that the mining sector’s contribution to the economy of Ghana will increase with the establishment of auxiliary industries, especially gold refineries, diamond cutting and polishing firms and alumina plants, among others.”
By Cephas Larbi
cephrok@yahoo.com