The Executive Director of the Africa Center for Energy Policy (ACEP), Ben Boakye has actually supplied reasons President John Dramani Mahama need to not dissatisfy on the Mineral Income Investment Fund (MIIF).
He discussed that the MIIF was produced to promote the Agyapa Royalty Investments– an idea masterminded by previous Finance Minister Ken Ofori-Atta and his Deputy Charles Adu Boahen to market Ghana’s gold nobilities on the London Stock Exchange.
At the moment the MIIF Act was passed, he stated, Parliament was not aware of real objectives behind it– the Agyapa purchase.
However, the enrollers and their many allies, consisting of attorneys and economic designers, understood specifically what they were doing: valuing Ghana’s nobilities from the 48 most encouraging mining giving ins at $1 billion and unloading 51% of that worth on the securities market for around $500 million.
“We wrote a paper to highlight the distinctiveness of state royalties, arguing that it was unconscionable to treat them like any royalty streaming business. We also pointed out the flaws in assuming definite numbers for mineral deposits, including those still under exploration—the fact that the investor position and the state position are different in natural resource valuation; Investors have time limits to mineral deposits and states maintain perpetual ownership,” he stated.
Ben Boakye even more mentioned thatMr Ofori-Atta minimized any type of argument to ideological resistance, revealing his decision to press the strategy ahead despite the arguments.
“Thankfully, Ghanaians unified to withstand the application of the Agyapa purchase– possibly conserved by the political election bells in 2020. Since the program was aborted, Ghana has actually gotten $1.08 billion in nobilities, of which 80% ($ 865.5 million) would certainly have been bound in the Agyapa sell simply 4 years et cetera of Ghana’s gold nobilities . This starkly highlights the bad judgment that entered into the choice to market Ghana’s gold nobilities.
With Agyapa aborted, MIIF, the papa of Agyapa, kept control over the sources for its financial investment instead of straight growth expense of that vital share of Ghana’s gold sources, he stated.
“The royalties paid by gold-producing companies are now declared as revenue for MIIF—no effort required. MIIF’s executives are free to hold press conferences to tout their “stellar” efficiency when the straight initiatives of gold manufacturers produce the nobilities. While the federal government annihilated the financial investments of people and outside financial institutions with hairstyles, MIIF continues to be a well-off entity with billions of cedis in money books. It funds institution get-togethers, political occasions, the building and construction of astroturfs, politically attached small mining procedures, and numerous other financial investments, besides the big management expenses.
“Civil culture companies (CSOs) that combated versus the Agyapa offer anticipate that the John Dramani Mahama (JDM) federal government will certainly reverse this unfavorable circumstance and maximize money for growth. Prior to current consultations at MIIF, some concessions were recommended by leading numbers in the judgment federal government: one, a merging of MIIF and the Ghana Infrastructure Investment Fund (GIIF) to improve the funds and develop an extra deliberate growth fund; and 2, topping the complete allotment to MIIF/GIIF at an optimum quantity (e.g., $5 billion), after which all nobilities would certainly change to the nationwide spending plan. In significance, to deal with allotment to the funds as equity of the state. The present circumstance– where inadequate funds draw away sources from the nationwide allocate optional misuse by companies– lodges inequality and disregards the basic difficulties encountering the nation: bad water system, insufficient institutions, a having a hard time medical care system, while MIIF continues to be abundant and negligent.
“As we examine the books of MIIF, the nation would be left wondering if this was/is a sovereign wealth fund or financial banditry with zero risk appetite hitherto possible in sci-fi movies. The blessings of natural resources must be spent to improve lives — love your people.”
Why President Mahama Should Not Disappoint on MIIF
1.The Mineral Income Investment Fund (MIIF) was produced to promote the Agyapa Royalty Investments– an idea masterminded by Ken Ofori-Atta and Adu Boahen to market Ghana’s gold nobilities on the London Stock Exchange …
— Benjamin Boakye (@benboakye) January 22, 2025
