Akufo-Addo inaugurates Minerals Investment Fund Board
President Nana Addo Dankwa Akufo-Addo inaugurated a nine-member Minerals Investment Fund Board at the Jubilee House in Accra on Friday.
The board has been tasked to raise $500 million through initial public offering (IPO) on both the Ghana and the London stock exchanges from the monetisation of mineral royalties.
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Administering the oaths of office and secrecy to members of the board, the President expressed the hope that the monetisation of mineral royalties would raise enough funds upfront to support the government in its development agenda and also boost the development of local players in the mining industry.
Board members
The board is chaired by Mr George Mireku Duker. Other members are the Chief Executive Officer of the fund, Mr Yaw Naah; Mrs Felicia Ashley and Dr Maxwell Opoku-Afari.
The rest are Mr A. Owusu-Amoah, Ms Naana Dufie Addo, Mr Kow Essuman and Mrs Antoinette Kwofie.
The ninth person is yet to be nominated.
Minerals Investment Fund
The fund was set up in pursuant to Section 21(1) of the Minerals Income Investment Act, which was passed by Parliament in 2018.
The fund, through its subsidiary entity, will own and manage all existing gold assets in the country and maximise value derived from those assets.
President Akufo-Addo said the fund was also intended to receive and manage royalties from minerals and other related incomes due the country from mining companies.
He said the Minerals Investment Act, Act 978 (2018) created a special purpose vehicle called ‘Asaase Royalties’, which seeks to gather royalties which go to the government to fund ‘Asaase Royalties’.
According to the President, the fund would raise half a billion dollars by selling a 49 per cent stake in ‘Asaase Royalties’ through the IPO, which would be listed on the London Stock Exchange and the Ghana Stock Exchange.
He further explained that the establishment of the fund was part of efforts by the government to diversify the sources of funding for national development.
Concerns
President Akufo-Addo expressed concern over the fact that despite Ghana’s position as the largest gold producer on the African market and a critical player in the global gold industry, the country had not been able to produce a wholly Ghanaian mining giant.
"After a century of mining in Ghana and up till today, there is no significant Ghanaian local domestic player in this industry and that is never good enough. Hopefully, this fund, when properly managed over the period, will erase that image,” he said.
He also expressed the hope that the fund and its managers would provide a new architecture for the mining industry to include significant Ghanaian players.
He said in order to get the fund operational and also have a clear idea of what the IPO would be involved in, its Chief Executive Officer went to London to meet potential investors, saying the prospects were encouraging.
The President said given Ghana’s position as the fastest-growing economy due to the prudent manner in which the government had managed the economy, the purpose for which the fund was established would be achieved.
Appreciation
On behalf of the board, Mr Duker expressed appreciation to the President for the confidence reposed in them.
He gave an assurance that the board would work assiduously to manage the fund effectively.