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The Ministry of Finance has held separate virtual meetings with the Social Association Council (SPC) and the leadership of Religious Organizations (FBO) as part of its commitment to engaging and consulting with stakeholders to deepen understanding of the royalty agreement from Agyapa.
The Social Association Council made up of Unions, the Ghana Employers Association and the government, represented by the Ministries of Finance and Employment and Labor Relations.
Religious organizations include the Conference of Catholic Bishops, the Christian Council of Ghana, the Pentecostal and Charismatic Council of Ghana, the National Associations of Charismatic and Christian Churches, and the Conference of Charismatic Bishops of Ghana.
Topics discussed included the nature and benefits of the transaction, ownership, transparency and domain of the registry, initial valuation, future prospects, as well as the need to continue engaging with all stakeholders to gain their buy-in and support. .
In his opening remarks, Finance Minister Ken Ofori-Atta provided the background to the Agyapa Program and the need to take advantage of the current high gold prices despite tighter financing conditions due to the Covid-19 pandemic.
He highlighted weaknesses in the current framework for managing our mineral royalties, which does not allow for the specific use and accounting of mineral royalties.
He also explained that the current framework limits the benefits that Ghana derives from its mineral resources.
Ken Ofori-Atta noted that despite centuries of gold mining and exporting, mining communities have not seen or benefited in any material way, nor has there been any major development in these areas.
The Minister explained that the Minerals Income and Investment Fund (MIIF), which owns Agyapa, is 100% Ghanaian, Agyapa Royalty is a 100% Ghanaian-owned entity until it is listed on the London and Ghana stock exchanges where the government plans to sell to 49 percent of shares through an initial public offering.
The shares will be listed on the London and Ghana stock exchanges.
He explained that registering the entity in Jersey, the Channel Islands, was very well intentioned given that several international companies, including Tullow and Vodafone, which are listed on the London Stock Exchange are all registered in Jersey.
He also went on to say that a listing on the London Stock Exchange will ensure that Agyapa Royalty must meet the highest standards when it comes to corporate governance and reporting requirements, among others.
Deputy Finance Minister Charles Adu Boahen, in a presentation, provided an overview of the Agyapa Royalty transaction and how Ghana would benefit from the transaction and guided attendees through the process and work that went into structuring the transaction from the beginning of 2018 to date.
Participants in the virtual meeting were satisfied with the explanation of the transaction and urged the government to ensure that the initiative benefits all Ghanaians, especially those in mining communities.
After the presentation, the participants also decided that the transaction was good and beneficial for the people of Ghana.
Council members and religious organizations also advised the government to expand the commitments and perhaps consider offering the presentation in local languages so that more Ghanaians can understand.
