Ken Ofori-Atta
Government has cleared the air on the controversy surrounding the Agyapa Mineral Royalty Limited deal.
The state is of the firm belief that the Agyapa deal will inure greatly to the benefit of the country, expressing excitement about the listing of Agyapa Mineral Royalty Limited on the London Stock Exchange as well as the local bourse, the Ghana Stock Exchange.
This is despite criticisms from a section of Ghanaians including civil society organizations and the opposition National Democratic Congress (NDC).
Speaking to the media on Thursday, August 27, 2020, Finance Minister Ken Ofori-Attta, says it was sad that since Independence from colonial rule, Ghana had not been able to have a listed company on the international stock exchange for its mineral resources.
He said the country has to maximize the value of income that it is due.
According to him, it is for that reason that Minerals Income Investment Fund (MIIF) was brought into force to ensure Ghana derive the best from its mineral resources.
He stated that gold companies, oil companies, that are in most cases ready to pay premium for Ghana’s resources, exist beyond Ghana.
He called for Ghanaians to be creative to expand the country’s sources for income generation, if they want to expand their share of the international pie.
For centuries, Africans have been getting far less than they deserve for their mineral resources, he said.
This is due to the fact that the resources leave the shores of Africa without value addition.
President Nana Akufo-Addo is clear in his mind that to move Ghana Beyond Aid we must add value to our resources, he said.
Deputy Minister of Finance, Charles Adu Boahen, making a presentation on the Agyapa Mineral Royalty Limited, said Agyapa will be the first royalty company coming from Africa.
He says there are other royalty companies that Africa oriented but based outside Africa.
According to him, the four key areas for the Agyapa Mineral Royalty are: education, health, infrastructure, housing.
He expressed the belief that Agyapa Mineral Royalty Limited will attract investment into the Ghanaian mining sector, create jobs and wealth for the country
Why London
Mr Adu Boahen says the listing of Agyapa Mineral Royalty Limited on the London Stock Exchange “will provide transparency and high international standards of corporate governance.”
He stated that “London is one of the major stock markets for listing mining companies.
According to him, “in order to realize maximum value for the shares that are being sold, London is the ideal way to ensure this.”
He added that “given the amount of funds the government of Ghana wants to raise, these amounts cannot be raised only on the Ghanaian stock market.”
Background
It would be recalled that
Parliament on August 14th approved the controversial Agyapa Mineral Royalty Limited agreement with the government of Ghana despite a walkout by the Minority.
About two years ago, Parliament passed the Minerals Income Investment Fund Act 2018 which establishes the Fund to manage the equity interests of Ghana in mining companies, and receive royalties on behalf of government.
The fund is supposed to manage and invest these royalties and revenue from equities for higher returns for the benefit of the country.
The law allows the fund to establish Special Purpose Vehicles (SPVs) to use for the appropriate investments. Last month, government introduced an amendment to the act to ensure that the SPVs have unfettered independence.
However, there have been concerns about the deal by many including the Minority in Parliament who have questioned the credibility of the agreement.
They have also called for a withdrawal of the deal.
Also, 15 Civil Society Organisations on Tuesday held a press conference to kick against the deal.
At the conference, the CSOs made an emphatic demand for a suspension of the deal until all documents relating to the beneficial owners of the deal are disclosed.
But Mr. Adu Boahen stated that the confusion over Agyapa Mineral Royalty Limited is because it is quite novel in this part of the world.
He said it was unfortunate that the MIIF is something that “we hastily put together.”
He said the Ministry of Finance worked with five institutions including Ghana Revenue Authority, Ministry of Lands and Natural Resources, Ministry of Justice, etc.
He said there were engagements with mining companies.
According to him, Agyapa Mineral Royalty Limited is 100 percent Government owned.
No Hidden Beneficiaries
Information Minister, Kojo Oppong Nkrumah, says suggestions that the Agyapa Mineral Royalty Limited deal was opaque are “thrash.”
He said “there has been full transparency.”
Mr Ofori-Atta said there were “no hidden beneficiaries” to the Agyapa deal.
He said it is 100 percent owned by the Government of Ghana and that the transaction has gone through Parliament and Cabinet.
According to the Finance Minister, Agyapa is going to be listed both in London and Ghana.
He said Agyapa is going to be the biggest company in Africa in the mineral space if it is well managed.
The MIIF, he said, is not hasty, it’s not new, saying people may be politicizing it because of elections.
Mr Adu Boahen said there are 16 mining companies under Agyapa.
Kofi Osafo-Mafo is the consultant on the Agyapa Mineral Limited agreement bringing his vast experience from similar projects on board.
By Melvin Tarlue