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Finance Minister details use of $500 million dollars from Agyapa Royalties listing

Finance Minister details use of $500 million dollars from Agyapa Royalties listing
Finance Minister details use of $500 million dollars from Agyapa Royalties listing

Last Updated on September 6, 2020 by MyGh.Online

Finance Minister Ken Ofori-Atta presents 2019 Budget
Finance Minister, Ken Ofori-Atta

Finance Minister, Ken Ofori-Atta, has detailed the use of the $500 million to be generated from the listing of the controversial Agyapa Royalties Limited on the London Stock Exchange (LSE).

Speaking on Joy News’ Newsfile, the Finance Minister noted that the capital to be generated from the listing will be used for three main objectives.

According to him, 20 per cent of the $500 million will be used for the acquisition of other mineral royalties as government plans to build the largest royalties company in Africa.

“What we are envisioning is to create the largest royalties company in Africa, so a fifth of the money will be put aside in the quest for the acquisition of other royalties all around (possibly in other African countries),” he stated.

According to the Finance Minister, a $2 million acquisition of other royalties could grow into $38 billion with time (did not disclose the time frame) if managed properly.

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The second objective of government, he disclosed, is to invest in the entire value chain of gold production. The construction of a world-class gold refinery would be built to process and refine gold mine in the country.

“Government wants to invest in the whole value chain of gold production, so for instance we don’t have an international standard gold refinery and that is something worth investing in, to make sure that when Ghana stamps on its bullion, it can be accepted internationally,” he noted.

Government, Mr Ofori-Atta also stated, will use portions of the capital raised to invest in mining communities in the area of tourism, infrastructure and education.  

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“Investments in the area of tourism and education in mining communities have not been properly done and its tragic if you look at Tarkwa and Obuasi, so investment will also be done in those areas,” he intimated.

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Speaking further, the Finance Minister posited that, resources will be dedicated to support Ghanaian miners to own gold mining companies.

“You cannot name two or three Ghanaian millionaires when it comes to gold mining in Ghana and that needs to be reversed, so let’s have dedicated resources to support Ghanaian miners because the difference between us and South Africa is that, the gold companies are owned by them but with us, it’s owned mainly by foreigners. And to do this, it needs deliberateness and the capital raised from Agyapa Royalties will help in doing that,” he stressed.

“Then also is the Ghs 100 billion Obaatanpa programme and the construction of district hospitals as well as the creation of a national mass housing construction plan to solve the anaemic problem of housing deficit,” he added.

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The third objective, he explained, is the creation of a National Development Bank which would serve as a wholesale bank to support the nation’s Venture Capital Trust Fund, Exim Bank and Ghanaian banks.

Source: www.adomonline.com

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