Two new private member bills have been submitted to the Clark to Parliament on Wednesday, 29th November, 2023 and currently being processed.
The Bills include Tashreeq (a day after Eid-al-Adha Festival) and Shaqq (a day before the Eid-al-Fitr) as Public Holidays and provide for related matters.
The Bills which seeks to amend the Public Holidays Act 2001, Act 601, forms part of efforts to realize the achievement of a more progressive and productive and inclusive society.
The Public Holidays (Amendment) Bill, 2023 (No.1) has a primary purpose of ensuring effective use of public holidays to ensure productivity seeks to amend the Public Holidays (Amendment) Act, 2001, Act 601, to remove the power of the President to declare additional public holiday, grant authority to the President to merge public holidays, postpone celebration of public holidays on productive days to Friday, remove criminal sanctions for non-observance of public holidays, and provide for related matters.
When passed public holidays that fall on days between Tuesday and Thursday shall be observed on Fridays. A substitute public holiday is an ordinary day that is treated like a public holiday instead of the actual public holiday. The basis for this proposal stems from the fact that productivity may be at its peak in the middle of the working week, say on a Tuesday or Wednesday.
The proposed amendment also gives relevant power and authority to the President to by Executive Instrument merged in a particular calender year the celebration of any two public holidays in the public interest and in the interest of productivity.
Currently, by practice, pubic holidays that fall on weekends are not marked as such, but such public holidays are postponed to Mondays, which fall on a working day, which contributes to loss of revenue by the State. By this amendment such practice would be done away with.
Also, the proposal seeks to abolish the regime of criminalizing conducts associated with public holidays by a repeal of the Offences and penalties provisions under section 5 of Act 601.
“The Public Holidays (Amendment) Bill, 2023 (No.2) seeks to extend the period of public holidays for Muslims from the current one (1) day each to two (2) days for each Islamic festivity”, Hon Francis -Xavier Sosu (ESQ), MP for Madina Constituency said in a statement issued after the submission of the Bills.
“The amendment seeks to include Tashreeq (a day after Eid-al-Adha Festival) and Shaqq (a day before the Eid-al-Fitr) as Public Holidays and provide for related matters.”
The Deputy Ranking Member , Constitutional Legal And Parliamentary Affairs Committee Of Parliament noted that, “the right of every Ghanaian to freedom of religion is a fundamental one. In Article 21(c) every Ghanian has the freedom to practice any religion and to manifest any religion. Being the 2nd dominant religion in Ghana, Ghanaian Muslims must have equal opportunities when it come to celebration of religious festivals. After 40 days of mandatory religious obligation of fasting, practitioners of Islamic Religion deserve an additional day for rest and to prepare for full activities.
“As such, the proposed days are the day before the Eid-al-Fitr which is observed by Muslims as the Shaqq day (a day before the end of the holy month of Ramadan in which Muslims mark the end of the fast), and the Tashreeq day (a day after the Eid-al-Adha in which Muslims remember the unwavering trust by Prophet Ibrahim to offer his son as a sacrifice). The religious significance of these holidays is to afford Muslims the opportunity to fully manifest and observe their faith, and offer gratitude to Allah for all that He has done, granted them, and continues to do; as well as for them to fully place and restore their trust in Allah and His abundant care, Grace and wisdom.”
Article 17(1) of the 1992 Constitution provides that “All persons are equal before the law”, and (2) states that “A person shall not be discriminated against on grounds of gender, race, colour, ethnic origin, religion, creed or social or economic status. Also, Article 26(1) states that “All persons shall have the right to freedom to practice any religion and to manifest such practice.”
Also, Article 2 of the African Charter on Human and Peoples’ Rights provides that “Every individual shall be entitled to the enjoyment of the rights and freedoms recognized and guaranteed in the present Charter without distinction of any kind such as race, ethnic group, colour, sex, language, religion, political or any other opinion, national and social origin, fortune, birth or other status.”
“Under the current regime, it is unfair, discriminatory, and does not allow for the full manifestation of the Islamic faith by Muslims as enshrined and guaranteed by the 1992 Constitution and other international laws and treaties”, the Human Right Activist juxtaposed.
When passed, this Act will go a long way to promote religious tolerance and help realize, promote and guarantee a more open, progressive, inclusive and secure society.
The flag-bearer of the NDC, John Dramani Mahama, has promised to review the laws that govern the extractive industry in next government.
He said, this will help the country to maximize her share and local participation in the exploitation of our natural resources.
Commenting on recently signed lithium mining lease agreement, the NDC holds the view, aside the fundamental issues battling the agreement, there are certain germane issues about the terms of the Ghana-Barari DV lease agreement that are worth highlighting. It has therefore listed a number of concerns in a press statement issued today.
“The NDC wants a deal that provides a clear and unambiguous strategy for maximizing the benefits of lithium mining through value chain participation”, the NDC statement signed by the National Communications Officer, Sammy Gyemfi, stated. “There is therefore the need for mandatory requirements for the local processing of raw lithium before it is exported out of the country and a 100% off-taker for the by-products thereof (i.e Feldspar, Silica, Kaolin etc.) for local industries and manufacturing companies.”
The NDC further believe that, the green minerals of the country, should not be exploited based on the existing mining laws and policies, which are predominantly tailored for gold mining and have not benefited the nation over the years.
“We are of the firm opinion, that it is about time the existing colonial model of mining lease concession agreements, was reviewed.
“New models for the exploitation of our mineral resources such as Joint Ventures and Service Agreements, that provide for equitable benefit sharing, enhanced local participation and value addition, should be considered as part of the review of the laws and policies governing our extractive sector.”
Read Full Press Statement Below:
PRESS STATEMENT
For Immediate Release
13th December, 2023
NDC’S POSITION ON THE GHANA-BARARI DV LITHIUM DEAL
The National Democratic Congress (NDC) has keenly followed public discussions on the controversial Mining Lease Agreement executed between the Government of Ghana and Barari DV Ghana Limited, for the exploitation of Lithium and other associated minerals in the Ewoyaa community of the Mfantseman Municipality of Ghana.
After a meticulous scrutiny of the terms of the Mining Lease Agreement, the NDC has come to the conclusion that the Ghana-Barari Lithium agreement is not in the best interest of Ghana.
1. It is an indisputable fact, that mining hasn’t benefited us as a nation over the years. Hence, there is the need for an urgent review of the country’s existing mining laws and policies, particularly in relation to green minerals.
2. This is why the flag-bearer of the NDC, H.E John Dramani Mahama has promised to review the laws that govern the extractive industry, in order for the country to maximize her share and local participation in the exploitation of our natural resources.
3. The NDC holds the view, that the green minerals of the country, should not be exploited based on the existing mining laws and policies, which are predominantly tailored for gold mining and have not benefited the nation over the years.
4. We are of the firm opinion, that it is about time the existing colonial model of mining lease concession agreements, was reviewed. New models for the exploitation of our mineral resources such as Joint Ventures and Service Agreements, that provide for equitable benefit sharing, enhanced local participation and value addition, should be considered as part of the review of the laws and policies governing our extractive sector.
5. Our beloved country urgently needs a reviewed mining regime, that provides for the sustainable funding and strengthening of the Ghana Geological Survey Authority, to engage in reconnaissance and prospecting, particularly in relation to green minerals. We believe that this, if supported by the Minerals Income and Investment Fund (MIIF) under the right policy framework, will enhance the bargaining power of the state in the exploitation of our mineral resources.
6. It is for these reasons, that the Akufo-Addo/Bawumia/NPP government should have extensively engaged all affected local communities, as well as key stakeholders including CSOs in the extractive sector, before executing the Barari-Lithium agreement. Sadly, there has been very little engagement by government with the affected local communities and key stakeholders in the processes leading to the execution of the controversial lithium deal. The NDC believes that, all stakeholders in the extractive sector must have a say in the kind of law and model, under which our lithium and other green minerals should be exploited for the maximum benefit of the State.
7. Aside the fundamental issues enumerated above, there are certain germane issues about the terms of the Ghana-Barari DV lease agreement that are worth highlighting:
I) First and foremost, the requirement in the mining lease agreement for the establishment of a chemical plant to process our lithium locally, is very weak to say the least.
* We note with concern, that under Schedule Two (2) of the lease agreement, the establishment of a local chemical plant by the company is not mandatory, but contingent on the conduct of a scoping study to determine the economic viability of the processing of lithium in Ghana.
* Even more worrying, is the fact that, paragraphs 1(b)(c) and (d) of schedule two (2) of the lease agreement, envisages the inability of the company (Barari DV) to meet this requirement. This makes nonsense of the claim by government that no raw lithium will be exported from Ghana under the agreement.
II) Secondly, there are no specific provisions in the mining lease that emphasize Ghana’s control over the lithium mining value chain and the benefits thereof.
* In the extractive sector, the ability of a country to optimize gains from the value chain is the surest way of domesticating benefits.
* The NDC wants a deal that provides a clear and unambiguous strategy for maximizing the benefits of lithium mining through value chain participation. There is therefore the need for mandatory requirements for the local processing of raw lithium before it is exported out of the country and a 100% off-taker for the by-products thereof (i.e Feldspar, Silica, Kaolin etc.) for local industries and manufacturing companies.
III) On the claim by government, that Barari DV will be paying corporate tax of 35% under the deal, it is important for government to clarify the status of the company and provide the full facts relative to concessions that have been granted the company.
*What the Mining Lease expressly provides is that, Barari DV shall pay taxes in accordance with the mining laws of Ghana, without more.
* We are however told that the Company is registered under the Ghana Free Zones Authority and is entitled to a 10-year tax holiday, when such tax concessions are ordinarily not granted to mining companies in the country. This if true, will deprive the country of corporate taxes during the first ten years of the Ewoyaa Lithium project. This will effectively limit Ghana’s share to the paltry 10% royalty and marginal benefits from our 13% carried interest and the 6% equity held by the Minerals Income Investment Fund (MIIF).
* It is therefore imperative, for government to clarify the status and tax obligation of Barari DV and its parent company. Ghanaians deserve to know whether or not the company is a free zone company and why a mining company should be accorded free zone status. Ghanaians deserve to know all the concessions government is giving the company (Barari DV/Atlantic Lithium) for a holistic assessment of the benefits of the deal.
* Beyond that, strict provisions on tax compliance and enforcement are required to ensure that the state is not cheated through transfer pricing and creative accounting.
IV) It is important to make the point, that government’s boastful claim about securing a 10% Royalty under the deal, is a celebration of mediocrity.
* It is worthy of note, that the prevailing royalty rate of 5% was based on section 25 of the Minerals and Mining Act, 2007 (ACT 703), which provides for a royalty rate of not less than 3% and not more than 6%. This law was amended by the erstwhile NDC/Mahama government, as far back as 2015 by ACT 900, which has made the Royalty rate open-ended and subject to negotiations.
* Also, the prevailing industry royalty rate of 5% relates to the country’s traditional minerals such as gold, bauxite etc. The Barari-Lithium agreement is the first deal for the exploitation of a Green Mineral in Ghana. Therefore, comparing the prevailing royalty rate of 5% to a 10% royalty rate for a Green Mineral like lithium, is an exercise in mediocrity.
* More importantly, we think that government should have opted for a flexible range of royalty rate, which takes into account windfall profit of the company. This royalty arrangement has been adopted by Chile, which currently has a royalty rate range of 8% to 21% depending on certain variables. In similar vein, the 10% royalty rate secured by government could have been the baseline rate, subject to upward adjustment in cases of windfall revenue or profit by the company, if government had negotiated properly.
V) Also, the requirement in the mining lease agreement for Barari DV or its parent company, Atlantic Lithium, to list on the Ghana Stock Exchange, is problematic for several reasons, including the following;
● No specific time-frame has been provided in the mining lease agreement for such listing.
● Listing on the Ghana Stock Exchange (GSE) may not necessarily benefit Ghanaians as foreigners can invest on the GSE and/or hide behind Ghanaian fronts to buy shares.
● Over the years, similar arrangements have largely benefited a few rich and powerful Ghanaians and not the ordinary Ghanaian.
● Ghana’s own previous experience with the listing of Anglogold Ashanti shares on the Ghana Stock Exchange, where Ghanaians who purchased shares completely lost out, should awaken us to the fact that, listing on the Ghana Stock Exchange can go wrong.
Suggestions for the Minerals Income and Investment Fund (MIIF) to acquire the said 11% Equity in the Ghana operations of the Barari DV, for and on behalf of the people of Ghana, is therefore worth considering.
VI) These facts completely belie the claim by government, that Ghanaian participation in the Ewoyaa Lithium project will be 30%. Beyond Ghana’s Free Carried Interest of 13% and the wholly inadequate 6% Equity acquired by MIIF, there are no specific provisions in the lease agreement that provide with certainty, a Ghanaian participation rate of 30% in the foreseeable future.
VII) Again, it is interesting to note, that under the shareholding structure of the company, there is a 4.4% Equity in the name of “Previous Land Owners”. In the spirit of transparency, the NDC demands a full disclosure of the identities of the Beneficial Owners of that 4.4% Equity and how that was arrived at. Ghanaians deserve to know who these “previous land owners” are.
8. In the face of all these pertinent issues, particularly, the non-existence of a feasibility report and a mandatory requirement for the local processing of our lithium resources, the NDC is of the view, that the Ghana-Barari Lithium deal is not in the best interest of Ghana. Thus, the ratification of the Mining Lease agreement executed by the Akufo-Addo/Bawumia NPP Government, should not even arise at this stage. It is our considered position, that Parliament should not consider the ratification of the Lease Agreement until all these pertinent issues are satisfactorily addressed in the best interest of Ghanaians.
Ghana seek investment to its Energy Transition and Investment Plan (ETIP) of about US$550 billion to scale up renewable energy and introduce nuclear energy in the country’s energy mix and for the deployment of clean cooking solutions and low-carbon solutions such as Carbon Capture Utilisation and Storage.
Energy Minister, Matthew Opoku Prempeh, revealed this when he addressed investors during Ghana’s Energy Day at the Ghana Pavilion at the Conference of Parties (COP28) currently underway in Dubai, UAE.
The Energy Transition Investment Plan (ETIP), he said, anticipates that the majority of the funding for the projects will come from private sector capital and de-risking instruments.
The Government of Ghana, according to the minister, will pursue policy reforms and provide a suitable environment for the execution of the energy transition projects.
“Investments are also needed for the deployment of electric vehicles to replace Internal Combustion Engines, the construction of electric and hydrogen fuel cell charging stations, the production of biofuels, the replacement of biomass industrial boilers with electric boilers and the provision of energy-efficient electrical appliances for the residential and service sectors among others,” he said.
He continued, “The realisation of the requisite capital will culminate in universal access to affordable and reliable power by 2024, economy-wide decarbonisation, socio-economic development, about 400,000 new jobs, and above all net-zero emissions in the country by 2060.”
The Manhyia South lawmaker used the opportunity to invite all investors to partner with the Government of Ghana to undertake the projects in our Energy Transition Framework to drive industrialisation and achieve our net-zero targets.
“As I said earlier, our doors are always open and I look forward to several partnerships,” he concluded.
All efforts and resources spent to promote global green economy seems to have been a waste as opposors mount a strong defense at a global event.
The president of COP28, Sultan Al Jaber, has claimed there is “no science” indicating that a phase-out of fossil fuels is needed to restrict global heating to 1.5C at the just ended event in Dubai.
According to a publication collaborated by the Guardian and the Centre for Climate Reporting, Al Jaber also said a phase-out of fossil fuels would not allow sustainable development “unless you want to take the world back into caves”.
The comments were “incredibly concerning” and “verging on climate denial”, scientists said, and they were at odds with the position of the UN secretary general, António Guterres.
Al Jaber made the comments in ill-tempered responses to questions from Mary Robinson, the chair of the Elders group and a former UN special envoy for climate change, during a live online event on 21 November. As well as running COP28 in Dubai, Al Jaber is also the chief executive of the United Arab Emirates’ state oil company, Adnoc, which many observers see as a serious conflict of interest.
More than 100 countries already support a phase-out of fossil fuels and whether the final Cop28 agreement calls for this or uses weaker language such as “phase-down” is one of the most fiercely fought issues at the summit and may be the key determinant of its success. Deep and rapid cuts are needed to bring fossil fuel emissions to zero and limit fast-worsening climate impacts.
Al Jaber spoke with Robinson at a She Changes Climate event. Robinson said: “We’re in an absolute crisis that is hurting women and children more than anyone … and it’s because we have not yet committed to phasing out fossil fuel. That is the one decision that Cop28 can take and in many ways, because you’re head of Adnoc, you could actually take it with more credibility.”
Al Jaber said: “I accepted to come to this meeting to have a sober and mature conversation. I’m not in any way signing up to any discussion that is alarmist. There is no science out there, or no scenario out there, that says that the phase-out of fossil fuel is what’s going to achieve 1.5C.”
Robinson challenged him further, saying: “I read that your company is investing in a lot more fossil fuel in the future.” Al Jaber responded: “You’re reading your own media, which is biased and wrong. I am telling you I am the man in charge.”
Al Jaber then said: “Please help me, show me the roadmap for a phase-out of fossil fuel that will allow for sustainable socioeconomic development, unless you want to take the world back into caves.”
“I don’t think [you] will be able to help solve the climate problem by pointing fingers or contributing to the polarisation and the divide that is already happening in the world. Show me the solutions. Stop the pointing of fingers. Stop it,” Al Jaber said.
Guterres told Cop28 delegates on Friday: “The science is clear: The 1.5C limit is only possible if we ultimately stop burning all fossil fuels. Not reduce, not abate. Phase out, with a clear timeframe.”
Bill Hare, the chief executive of Climate Analytics, said: “This is an extraordinary, revealing, worrying and belligerent exchange. ‘Sending us back to caves’ is the oldest of fossil fuel industry tropes: it’s verging on climate denial.”
“Al Jaber is asking for a 1.5C roadmap – anyone who cares can find that in the International Energy Agency’s latest net zero emissions scenario, which says there cannot be any new fossil fuel development. The science is absolutely clear [and] that absolutely means a phase-out by mid-century, which will enhance the lives of all of humanity.”
Prof Sir David King, the chair of the Climate Crisis Advisory Group and a former UK chief scientific adviser, said: “It is incredibly concerning and surprising to hear the Cop28 president defend the use of fossil fuels. It is undeniable that to limit global warming to 1.5C we must all rapidly reduce carbon emissions and phase-out the use of fossil fuels by 2035 at the latest. The alternative is an unmanageable future for humanity.”
Dr Friederike Otto, of Imperial College London, UK, said: “The science of climate change has been clear for decades: we need to stop burning fossil fuels. A failure to phase out fossil fuels at Cop28 will put several millions more vulnerable people in the firing line of climate change. This would be a terrible legacy for Cop28.”
Otto also rejected the claim that fossil fuels were necessary for development in poorer countries, saying that the latest report from the Intergovernmental Panel on Climate Change “shows that the UN’s sustainable development goals are not achievable by continuing the current fossil-driven high emission economies. [There are] massive co-benefits that come with changing to a fossil-free world”.
A spokesperson for Cop28 said: “The IEA and IPCC 1.5C scenarios clearly state that fossil fuels will have to play a role in the future energy system, albeit a smaller one. The Cop president was quoting the science, and leading climate experts.
“He has clearly said that the oil and gas industry must tackle scope 1 and 2 emissions [from their operations], must invest in clean energy and clean technologies to address scope 3 emissions [from burning fuels], and that all industry must align around keeping the north star of 1.5C within reach.
“Once again, this is clearly part of a continued effort to undermine the Cop presidency’s tangible achievements and a misrepresentation of our position and successes to date.”
The spokesperson said the presidency had operationalised the loss and damage fund with more than $700m, launched a $30bn private market climate vehicle, and brought 51 oil companies to agree decarbonisation targets and 119 countries to sign a pledge to triple renewable energy. “This is just the beginning,” the spokesperson said.
Al Jaber is also head of Masdar, the UAE’s renewable energy company, but his appointment as Cop28 president has been controversial. Shortly before the summit, leaked documents showed that the UAE had planned to use climate meetings with governments to promote oil and gas deals. Al Jaber denied having seen or used the talking points in the documents. Adnoc also has the largest net-zero-busting expansion plans for oil and gas, according to independent analysis.
The issue of a phase-out or phase-down is complicated by the terms not having agreed definitions and by the highly uncertain role of technologies to “abate” emissions, such as carbon capture and storage. “Keeping the Paris agreement targets alive will require a full fossil fuel phase-out, not a vague phase-down relying on unproven technologies,” said Otto.
More than 100 African, European, Pacific and Caribbean countries back a phase-out of unabated fossil fuels. The US, the world’s biggest oil and gas producer, also backs a phase-out. Others, such as Russia, Saudi Arabia and China, reject the call. Both options are on the table at Cop28, as well as proposals to only mention coal, or to not say anything at all about fossil fuels.
Cop26 in Glasgow in 2021 agreed for the first time to “phase down” coal use, but this had been watered down from “phase out” at the last minute, bringing the Cop26 president, Alok Sharma, to tears.
In his conversation with Robinson, Al Jaber also said: “A phase-down and a phase-out of fossil fuel in my view is inevitable. That is essential. But we need to be real serious and pragmatic about it.”
“Hold on. Let me just explain,” he said. “The world will continue to need energy sources. We [UAE] are the only ones in the world today that have been decarbonising the oil and gas resources. We have the lowest carbon intensity.”
This refers to the emissions from the energy used to extract fossil fuels, not the far larger emissions from burning the fuels. “There is no such thing as ‘low carbon’ or ‘lower carbon’ oil and gas,” said Otto.
Numerous commentators have said that negative or embarrassing revelations about Al Jaber and Adnoc increase the pressure on him to deliver a strong Cop28 deal. The Guardian reported recently that state-run UAE oil and gas fields had been flaring gas almost daily despite having committed 20 years ago to a policy of zero routine flaring.
The Guardian previously reported that Adnoc had been able to read emails to and from the Cop28 office until the Guardian raised the issue in June and that the UAE had also failed to report its oil industry’s emissions of the powerful greenhouse gas methane.
Harjeet Singh, at Climate Action Network, said: “Cop28 must deliver a decision on phasing out fossil fuels in a just and equitable manner, without any loopholes or escape routes for the industry to continue expanding and exacerbating the climate crisis.”
The Minister for Lands and Natural Resources, Samuel Abu Jinapor, has revealed that the mining lease agreement between Ghana and Barari DV Ghana Limited for lithium extraction will be presented to Parliament for ratification early next year.
This announcement was made during a press briefing last week, where the minister addressed concerns over the lithium mining lease signed on October 20, 2023.
According to the Damongo legislator, the mining lease mandates ratification by Parliament, and failure to undergo this process would result in the annulment of the lease.
“There has been an issue of ratification of the lease. It has been raised by several people. This has never been lost on us as this is expressly provided for the mining lease granted to Barari DV Ghana Limited. Specifically, Clause 1E of the lease states ‘the mining lease is subject to ratification by Parliament in accordance with Article 2681 of the constitution and section 54 of Act 703’. ‘Upon execution of this mining lease, the Minister shall cause the mining lease to be laid in Parliament for ratification’.”
“By the very term of the lease, therefore, ratification by Parliament is a condition precedent, he said, “as an unratified mining lease confers no enforceable right, and the government has always been mindful of this decision.”
“The mining lease in question will be laid before Parliament for ratification,” he added.
For instance, a former Chief Justice of Ghana, Sophia Akuffo, has expressed the view that the recently signed lithium lease by the government lacks completeness without parliamentary ratification.
According to her legal analysis, this particular transaction should have undergone the process of submission to Parliament for approval.
“My legal view is that it is a transaction that requires ratification, it is not complete. This is a document, it is signed and sealed and delivered but it is a deal that has to be ratified by a named authority, that is the Parliament of the Republic of Ghana,” she said while speaking as a Distinguished Scholar of the Institute of Economic Affairs (IEA) in Accra on Tuesday, November 28.
Meanwhile, the Minerals Commission responded to criticism from certain individuals regarding the lithium deal between the government of Ghana and Barari DV Ghana Limited.
In a press statement issued on Monday, December 4, the Minerals Commission pointed out that the critical statements made by some individuals stem from a lack of thorough reading of the agreement.
The statement emphasized that many concerns are based on inaccurate assumptions and unsupported assertions.
The Minerals Commission reiterated that the lithium deal is in the best interest of the nation.
The mining lease, granted for 15 years to Barari, a subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange (ASX) and the Alternative Investment Market (AIM) of the London Stock Exchange, covers an area of 42.63 km² in and around Ewoyaa in the Mfantseman Municipality of the Central Region.
The $250-million project, located in Ewoyaa, Mfantseman Municipality in the Central Region, is set to commence production by 2025.
The deal includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.
Barari DV Ghana Limited is also required to contribute 1% of its revenue to a community development fund for the upliftment of the mining area.
Dr Ernest Addison, Ken Ofori-Atta and IMF Official
Adnan Adams Mohammed
Data from the International Monetary Fund (IMF) indicates that, Ghana’s debt with the Fund hovers around US$1.644 billion as at December 7, 2023.
This positions Ghana as the seventh most-indebted African nation to the Fund.
On the continent; Egypt ranks first with US$11.968 billion debt, Angola follows with US$3.153 billion and South Africa places third with US$2.669 billion. In the West Africa sub-region, Cote D’Ivoire places first owing US$2.117 billion, Nigeria comes second with US$1,840 billion followed by Ghana on the third spot.
On the global space; Argentina owes US$31.100 billion making the southern American nation the highest indebted to IMF followed by Egypt which owes US$11.968 billion.
IMF is a key player in global finance, offering monetary assistance to governments suffering economic difficulties. However, these loans from the IMF can have deep and varied effects on each country’s economy. These effects are felt in some parts of Africa, particularly in regions where the debt is unsustainable.
In times of economic crisis, most countries run to the IMF for relief to stabilize their financial systems. These loans help cushion the economic adversities that countries may be going through.
Currently, Ghana is in a Balance of Payment relief program with the IMF which was approved in May this year. The first tranche of the $3 billion extended credit facility hit Ghana’s account on Friday, 19 May 2023.
The Finance Minister, Ken Ofori-Atta, at the press conference noted that, the executive board approval given to the bailout, has already started impacting Ghana’s economy positively.
“We are already seeing relative stability in the currency and inflation and revitalising our economy. Government with support from the IMF and collective effort with Ghanaians will work through our current challenges and emerge stronger.”
Loans from global financier can also help buff the country’s finances until they can come up with a more sustainable solution to their economic problems. And, additionally, a loan from the IMF can boost a country’s credibility in the eyes of foreign investors. This rise in trust may result in higher foreign direct investment and better access to global capital markets.
However, these loans if not managed or utilized properly could hurt an economy. Aside from the fact that debts owed in general can cause financial stress in any economy, as it represents an expense that the country must take responsibility for, IMF loans often come with stringent conditions, including austerity measures such as reducing public spending, cutting subsidies, and implementing tax increases.
While these measures are intended to address fiscal imbalances, they can lead to social unrest and adversely affect vulnerable populations. These complications can also seep into the country’s exchange rate, making local currencies weaker than they should be.
I am pleased to have a second opportunity to join you at your annual end-of-year cocktail. This networking event provides an excellent opportunity to share new ideas, knowledge, wisdom, and experiences.
And I mean experiences from Ghana that defy all the models and theories taught in Business Schools – because if you have survived this economy since 2018, then you are a successful global case study.
Like my first participation, I have enjoyed your warm friendship and insightful conversations and shared great ideas with many of you here tonight. Of course, my determination to transform Ghana’s economy into a 24-hour working economy featured prominently in the conversations.
But I cannot help but repeat the point made by one of the CEOs, with deep regret written on his face, that “we want to pay every legitimate tax, BUT the needless harassment from GRA must stop. Back-dated tax audits, re-audits and assessments based on the whims of the taxman are killing businesses”, he lamented.
Ladies and gentlemen, many businesses still bear the brunt of the economic meltdown. This is because, contrary to the Finance Minister’s assertion, we have not turned any corner, and 2024 will be a very challenging year. Many have shut down their businesses, and hundreds of thousands of laid-off workers are still at home.
Businesses that moved headquarters from Ghana to our neighbouring countries have yet to return. The poorly thought-through banking sector clean-up has left thousands of skilled financial sector workers, jobless and impoverished.
As I speak, the second tranche of the IMF’s Extended Credit Facility, due on the first of November, has still not been received because of a delay by our external creditors to sign off on our debt restructuring programme.
Of course, the consequences of our debt default have also started manifesting. For the first time in thirty years, Ghana struggled to assemble a cocoa-syndicated loan, which had almost become routine on our financial calendar. Major infrastructure projects have stopped because lenders have cut funding as a direct fallout from our debt default.
Independent Power Producers continue to threaten power cuts due to mounting debts affecting their operations. A few days ago, one of the producers threatened to take out 560 MW of power before a promise to pay was made. Ghanaians face grave uncertainty if more of them follow suit.
As a proud Ghanaian and a political leader, it is disheartening that the government has severely damaged our country’s reputation on the global stage.
Recent data from available research shows that the cost of living in Ghana is very high, and people are struggling to make ends meet due to the economic downturn. This includes pensioners who invested their savings in government bonds, hoping to enjoy a better retirement.
Business confidence remains low, with private sector credit declining in real terms. As of October 2023, credit to the private sector had decreased significantly by 31.6%. This is because of the government’s excessive borrowing over the last seven years and reliance on the short-term treasury market.
Lending rates increased to over 32% in October 2023 due to the Bank of Ghana’s tight monetary policy, high treasury bill rates, and rising non-performing loans.
The immutable reality is that the first three quarters of the year (2023) have also been a tragic period for Ghana’s industries, causing a setback for the country’s economic transformation. While the mining and quarry sector is still holding out, most sub-sectors, such as construction, electricity, water supply, sewerage, and waste management, have experienced a decline.
These are clear signs of an ailing economy— an economy whose industrial base is failing and businesses collapsing with growing unemployment and its associated poverty and misery. Unemployment remains high, with the latest data indicating about 14%.
Meanwhile, the 2024 budget and financial estimates of the government presented to parliament have introduced, yet again, a raft of taxes that will only add to a list of already burdensome taxes. These taxes, combined with very high-interest rates, will further whittle away the capital of Ghanaian businesses and hinder their competitiveness.
The economic crisis has ravaged all of us, but as business leaders, you have a deeper appreciation of the current situation. Paraphrasing Bob Marley and the Wailers, “who feels it, knows it.”
Undoubtedly, the economic catastrophe we face is self-inflicted and caused by this government! However, for the sake of Ghanaians and the future of our dear country, we cannot allow the status quo to continue.
As flagbearer of the National Democratic Congress, I have put forth several proposals to ensure that the economy is returned to a stable footing and that economic activity is expanded for job creation and growth.
I have committed the future NDC government to stringent enforcement of prudence and fiscal discipline in public financial management. Government expenditure will be cut and streamlined by significantly reducing the number of overlapping agencies and amorphous creations of this NPP administration.
As I noted at last year’s event, we cannot fail to learn from the present economic catastrophe. This crisis shows there is no substitute for prudent financial management.
Ladies and gentlemen, we are faced with a triple helix problem that threatens the stability of our democracy, namely, a financial crisis, severe unemployment, and unprecedented levels of corruption. Without an economic revamp, we cannot hope to make any mark in our massive unemployment crisis, which is leading many of our young people down the road of despair.
Research shows that unemployment, unavailability of jobs, poverty, high cost and poor living conditions are issues of grave concern to many Ghanaians.
Chief Executives, business owners, ladies and gentlemen, we cannot continue the business-asusual way of doing things. We must think outside the box. We must enhance efficiency by optimising available resources, including infrastructure and human resources.
Ghana must work efficiently!
The restless quest for efficiency to solve our financial and unemployment problems is why I have
emphasised that more than the traditional and regular methods of economic activity would be
needed to revitalise our economy.
My next administration will pursue projects and programmes to transform Ghana into a fullyfledged 24-hour economy by optimising available resources.
I acknowledge the massive support for the idea of a 24-hour economy by the Trades Union Congress, Civil Society Organizations, Journalists, Lecturers, Labour Consultants, CEOs and Captains of industry, personnel from the creative arts industry, drivers, traders, and the teeming unemployed youth of Ghana.
God willing, from January 7, 2025, we shall implement a series of TRANSITION MEASURES to address the economic decline and set Ghana on the path to recovery.
The proposed 24-hour economy forms part of the NDC’s vision to build the Ghana We Want. Let me reiterate that our quest to build the Ghana we want together with you will be premised on:
Building an industrialised, inclusive, and resilient economy that creates well-paying jobs,
Creating an equitable, healthy, and prosperous nation,
Developing well-planned, safe communities while protecting the natural environment,
Building effective, efficient, and dynamic institutions for national development; and
Strengthening Ghana’s role in African and international affairs.
Ladies and gentlemen, the 24-hour economy may have finally resonated with Ghanaians. It may be classified as an idea whose time has come due to Ghana’s self-inflicted economic crisis today because the 24-hour economy initiative was well-thought-through and captured on page 105 of the NDC’s 2020 People’s Manifesto.
Indeed, its roots emanate from the 40-year National Development Plan the National Development Planning Commission (NDPC) put together when I was President. Unfortunately, the present government discarded the 40-year plan and replaced it with a Ghana Beyond Aid plan that has turned Ghana into a beggar nation.
Stripped to the essentials, ladies and gentlemen, the 24-hour policy will be anchored as an economy that runs around the clock with a three-shift work schedule in many sectors. The intent is to transform Ghana into, first, a self-sufficient and then an export-led economy.
To be clear, we are not creating a command economy with centralised planning. That would be at variance with the Social Democratic ideology of the NDC.
Specifically:
We will combine government support and private sector involvement to realise the 24-hour economy.
We will establish a comprehensive policy framework that supports the growth of a 24-hour economy.
Legislation will be introduced to support businesses operating 24/7, including labour laws, tax incentives, and regulations that ensure workers’ rights and protection.
Favourable tax policies will be adopted so that businesses can reduce their operational cost and stay competitive.
Companies that sign up for the 24-hour economy policy will enjoy smart metering calibrated to charge a lesser tariff (per KW/h) for power consumed during off-peak hours at night based on a Time of Use (ToU) tariff system.
Financing support will be provided for certain strategic agro-processing firms and manufacturing companies to boost production for value addition, self-sufficiency, and increased exports.
Knowing that the government is the biggest spender in the economy, we shall boost demand by ensuring that all government ministries, agencies, assemblies, and stateowned enterprises buy made-in-Ghana goods and procure the services of Ghana-based firms where available.
We will address safety and security measures to ensure smooth operations across all sectors during extended hours.
We will see the availability of the necessary infrastructure, such as transportation networks, public amenities, and security systems, including a well-regulated and monitored private security architecture to facilitate round-the-clock activities.
Technology and digital infrastructure investment would also be prioritised to enable automation and seamless operations.
We cannot have a successful 24-hour economy without an aggressive expansion in our exports.
I will, therefore, personally chair an Accelerated Exports Development Council (AEDC), which will meet quarterly to review initiatives for expanding Ghana’s exports under the 24-hour economy.
ECOWAS Trade Liberalization Scheme (ETLS) and the African Continental Free Trade Agreement (AfCFTA).
There will be extensive consultation and collaboration with various stakeholders, including CEOs, businesses and workers’ unions.
Businesses will be encouraged to empower the workforce with the necessary skills and training to thrive in a 24-hour economy, focusing on the most impacted sectors.
Sanitation, cleaning services, garbage collection and environmental protection will also form a significant part of the 24-hour economy.
Financial services at the port, shipping agents, and customs will be enabled to work additional shifts at night and at weekends to allow for the 24/7 clearing of goods at our ports. This will help reduce demurrage charges on importers and reduce congestion at our
ports.
My brothers and sisters, there will be no limit to the sectors the 24-hour economy initiative will
target. And the benefits will be enormous. Through the 24-hour economy, we will create new,
decent, and well-paying jobs for the youth, reduce unemployment, which is a significant challenge,
and improve the living standards of Ghanaians.
Also, the expanded range of operating or working hours will increase productivity and fully utilise
all resources, including infrastructure. The 24-hour economy will provide greater flexibility and
convenience for workers and allow citizens to access goods and services anytime.
We will improve infrastructure, lighting, and security at entertainment districts such as the Osu Oxford Street, Abeka LaPaz, East Legon Lagos Avenue, etc., to allow operations throughout the night – Consider hospitality, transportation, and security, including a well-regulated and monitored private security establishment. These will enhance the consumer experience and create a thriving and dynamic economy.
Let me add that the 24-hour economy will also attract foreign direct investment to stimulate the local economy and create more employment opportunities for Ghanaians.
We would wage a strong fight against corruption to reduce waste and save money for reinvestment in the economy. The sword of the fight against corruption will cut both ways – against past government officials, officials of the incumbent administration, civil and public servants, businesses, government suppliers, etc.— if they fall foul of the law.
We would review our laws governing the extractive industry so that Ghana can increase its share and local participation in exploiting our natural resources.
I believe that with improved revenues from the savings made from a reduced size of government, the anti-corruption fight, fast-tracked operationalisation of new oil and gas wells, increased investment in the mining sector and a revamped cocoa sector, we can ease the heavy burden of tax that has been placed on Ghanaian households and businesses.
Ladies and gentlemen, we in the NDC have never claimed to be repositories of all knowledge, and so we look forward to the mutual sharing of ideas and insights with you as we have done here tonight. We need to network more, and I look forward to another opportunity where I can sit and interact, take your questions, share more thoughts, and imbibe your suggestions to tackle our collective problems.
When entrusted with the governance of this country and the management of the economy, I pledge on behalf of the NDC to stay the course of prudence to maintain stability and predictability in the economy.
Incidentally, today is December 7, and a year today, we would have begun counting and tallying the results of the Presidential and Parliamentary elections. By this time, Ghana will be preparing for the results of a decisive election for CHANGE. We are confident that the survival of businesses like yours depends on a stable macroeconomic environment. It will also depend on the need for change next year.
I remain optimistic about the Mahama 24-hour economy initiative.
In a rapidly advancing global economy, in which countries worldwide are gradually drifting and adopting 24-hour economies to remain competitive and attract investments – Ghana cannot be left out.
With increasing urbanisation, where many previously rural communities are becoming urbanised with its associated higher demand for goods, including food, beverages, and services around the clock – Ghana cannot be left out.
With an expanding services sector in which healthcare, tourism, entertainment, Business Processing Outsourcing and Call Centres have the potential to operate optimally and continuously – Ghana cannot be left out.
With technological advancements enabling communication, coordination, and transactions at any time, making it easier for businesses to operate 24 hours, seven days a week – Ghana cannot be left out.
Finally, my dear CEOs, let me assure you that we shall pursue initiatives that allow the private sector to flourish consistently and visibly and in a way that improves upward socio-economic mobility and social justice.
My commitment is to stop the excessive and direct competition between the government, its agencies, and cronies with private businesses through dubious restriction mechanisms and aggressive business regulation.
The 24-hour economy is a game-changer for the Ghanaian economy. It will benefit your businesses, employment and the enjoyment of the youth who are seeking jobs.
We shall vigorously pursue the 24-hour economy, amongst many other initiatives, as part of our broader vision and determination to increase economic growth, create jobs, and improve the quality of life of Ghanaians.
We shall work with you to build the Ghana we want together.
MOMENT OF TRUTH PRESS CONFERENCE ON THE PROPOSED “RESTRICTIONS ON THE IMPORTATION OF SELECTED STRATEGIC PRODUCTS REGULATIONS”, HELD ON 6TH DECEMBER, 2023 AND ADDRESSED BY DR. CASSIEL ATO FORSON, LEADER OF THE NDC MINORITY CAUCUS IN PARLIAMENT
1. Friends from the media, I would like to extend our warm compliments to all of you, for your presence here this afternoon.
2. This engagement has been necessitated by discussions surrounding a Legislative Instrument (LI) that the Akufo-Addo/Bawumia NPP government is desperately attempting to introduce in Parliament, which has very far-reaching implications for Ghanaians.
3. The said LI, the Export and Import (Restrictions on Imposition of Selected Strategic Products) Regulations, 2023, seeks to give the Minister of Trade and Industry, the sole prerogative and unfettered power to grant licenses to any person desirous of importing into the country, some essential items numbering twenty-two (22). These items are:
• Rice
• Guts, bladders, stomach and intestines of animals
• Poultry
• Frozen cuts and offal of fowl
• Animal, vegetable, coconut and palm oil
• Margarine
• Fruit juices
• Soft drinks
• Mineral water
• Ceramic tiles
• Corrugated paper and paper board
• Mosquito coil and insecticides
• Soaps and detergents
• Motor cars
• Iron and steel
• Diaper
• Polymers (plastic and plastic products)
• Fish
• Sugar
• Clothing and apparel
• Biscuits
• Canned tomatoes
• Aluminium products.
4. As expected, these ill-conceived regulations have faced stiff resistance from the NDC Minority in Parliament. Indeed, we have not been alone in this endeavour, as the business community and other well-meaning Ghanaians have joined us in opposing these restrictions which clearly do not bode well for our country.
5. Indeed, the Joint Business Consultative Forum, comprising reputable associations such as:
• the Ghana Union of Traders’ Associations (GUTA),
• Food and Beverages Association of Ghana (FABAG),
• Importers and Exporters Association of Ghana,
• Ghana Institute of Freight Forwarders (GIFF),
• Chamber of Automobile Dealership Ghana (CADEG), and
• Ghana National Chamber of Commerce and Industry (GNCCI)
argue that the LI if enacted, would have serious detrimental effects on their businesses.
6. Let me make it clear, that in principle, the NDC is not against any legal regime or policy that seeks to protect indigenous businesses by regulating imports. What we are vehemently against, is a law that confers unfettered discretionary power on a single individual, in this case a Minister of Trade, to issue import licenses and to restrict the quantity of certain imports into the country, without any checks and balances.
7. Such laws often breed corruption and cronyism, and can easily be abused to create a monopoly for some few individuals. As it is often said, power corrupts, but absolute power corrupts absolutely.
8. Simply put, the proposed Import Restrictions Regulations of the failed Akufo-Addo/Bawumia NPP government, seeks to grant unchecked discretionary power to the Minister for Trade, to solely determine whether or not, to issue an import license to a person and to restrict the quantity of certain imports into the country, as he deems fit.
9. The regulatory framework proposed by the LI is not only opaque, but can lend itself to arbitrariness and abuse. This clearly, is going to be an avenue for extortion and corruption if allowed to stand.
10. Also, the proposed Regulations seek to impose both an application fee and a license renewal fee on prospective importers. This will in no doubt, impose an additional burden on businesses which are already wobbling under so much pressure from the several draconian tax measures and bad policies of the insensitive Akufo-Addo/Bawumia government.
11. Even after one has fulfilled these requirements and paid the necessary application or renewal fees, the decision to issue or renew an import license, rests solely with the Minister of Trade, who can potentially use such unfettered powers to frustrate businesses of perceived political opponents.
12. Additionally, under the proposed regulations, a Minister of Trade and Industry will constitute himself into a judge in his own cause, in the sense that the same Minister who seized with the power to grant, renew or cancel an import license, is equally clothed with the power to unilaterally determine a review application against his own decisions. This arrangement is clearly against natural justice.
13. It is instructive to note that, currently, Ghana does not have any significant local capacity to produce some of the “strategic products” listed under the First Schedule of the proposed LI such as sugar, among others. Neither has the government outlined any specific interventions or incentives to promote the local production of such products. This completely belies the government’s claim that the proposed regulations are intended to promote local production of the affected products and conserve foreign exchange.
14. More importantly, the proposed Regulations gravely offend some international trade treaties and protocols that Ghana is a party to. For instance, the regulations in their current form, contravene the World Trade Organisation (WTO) trade facilitation agreement, particularly on quantitative restrictions. This could lead to serious retaliatory action by our trade partners and eventually, affect exports from Ghana.
15. It should be obvious to any discerning mind, that the excessive discretionary powers that the law grants a Minister for Trade, will afford him the opportunity to subject the issuance and renewal of import permits to crony or state capture. If this law is allowed to pass, a Minister of Trade will be handed a blank cheque to deny those who are not in his good books, licenses and create powerful trade cartels who will monopolise the importation of these essential commodities. This has the potential to create supply disruptions and shortages of certain goods in the economy with its concomitant effects on inflation.
16. The NDC holds the view that the right to import essential commodities into the country cannot be limited to the whims and caprices of a Minister of Trade and Industry, his deputy or a certain Import Permit Committee, which will be constituted by the Minister under Regulation (2) of the proposed regulations.
17. The alternative view of the NDC on this matter is that:
• Where credible data exists to show that Ghana has adequate domestic capacity to produce a particular product, or where the consumption of a product has been proven to be injurious to public health or safety, government can simply place a ban on the importation of such products into the country.
• However, where a particular product has not been proven to be harmful to public health or safety, and there is no credible data to show that adequate domestic capacity exists to fully meet the demand for that product, government can regulate the importation of that product in two main ways:
I. One of the ways is to introduce a transparent quota system for the importation of certain products, as was done by the erstwhile NDC/Mahama administration in the poultry sector.
A quota system requires a prospective importer of a particular product to first show proof of utilizing existing local capacity by procuring a certain percentage of his intended import volume, locally.
When the erstwhile NDC/Mahama government realized that the local poultry industry had capacity to meet about 20% of total domestic consumption, the government introduced the 40% rule in the year 2014, which required poultry importers to purchase at least, 40% of their total stock from local poultry farmers.
This policy was implemented alongside the Ghana Broiler Project and the provision of incentives for local poultry farmers, aimed at enhancing the domestic production of poultry.
II. Another mechanism that can be used to regulate imports with the aim of protecting indigenous industries, is the imposition of tariff and non-tariff measures on certain products to encourage the patronage and consumption of locally-produced commodities.
18. It is a known fact that trade volumes at our ports have dropped drastically under the failed Akufo-Addo/Bawumia NPP government due to high duties and taxes. Similarly, smuggling of goods out of Ghana to other neighbouring countries has intensified due to the porous nature of our borders. This obnoxious Legislative Instrument will exacerbate these problems and negatively impact livelihoods and the economy as a whole.
19. As you may be aware, the insensitive Akufo-Addo/Bawumia NPP government is also seeking to introduce a new raft of draconian tax measures on the already-impoverished Ghanaian public, on the back of the 2024 budget which is yet to be approved.
20. These tax measures which are currently before Parliament include;
i. Imposition of VAT on non-life insurance such as:
• Motor or car insurance
• Marine insurance
• Fire insurance
• Building insurance
• Goods-in-transit, etc.
ii. Imposition of 5% VAT flat rate on residential and commercial real estate. Ghanaians should get ready to pay 5% VAT anytime you buy a house from an individual or a real estate company.
iii. Imposition of VAT on:
• Textbooks,
• Exercise books,
• Newspapers,
• Publications,
• Architectural plans,
• Scientific and technical works,
• Magazines,
• Periodicals,
• Calendars,
• Trade catalogue,
• Price list,
• Diaries,
• Stationery etc.
iv. Imposition of VAT on domestic air travels.
v. Imposition of VAT on the domestic transportation of passengers by road, rail and water.
vi. Increase of stamp duty rates across board.
vii. A new Excise Duty Amendment Bill, which seeks to increase the excise duty on Cider beer from 20% to 47.5% of ex factory price.
The bill also seeks to introduce excise duty of GHS100 per annum for all petrol and diesel vehicles i.e internal combustion engines. This new tax applies to;
• Private cars,
• Trotro,
• Uber,
• Taxis,
• Motorcycles,
• Aboboyaa
• Pragyia
• Okada
• “Mahama can do”, etc.
This particular tax is regressive since all vehicles will pay the same amount of GHS100 per year whether you are using V8, articulator or an uber car.
Further more, the bill seeks to introduce excise duty of GHS100 per tonne of carbon dioxide emissions by industries.
Also contained in the bill, is a 20% excise duty on Akpeteshie.
21. It is the considered view of the NDC, that the proposed import restriction regulations are regressive, counter-productive and have the potential to breed corruption just like the days of “essential commodities” and “price control”. The law is completely unwarranted and unwelcome.
22. Already, importers and the business community have amply demonstrated how these regulations lack broad consultation and consensus. We therefore call on government to withdraw these regulations immediately and broaden its engagement with all key stakeholders.
23. We also call on the Trades Union Congress (TUC) , Civil Society Organisations (CSOs), traditional authorities, the clergy and all progressive forces to speak up and join us to reject these obnoxious import restriction regulations, in the supreme interest of Ghana.
SIGNED.
HON. DR. CASSIEL ATO FORSON
(Member of Parliament for Ajumako Enyan Essiam and Leader of the NDC Minority Caucus of Parliament)
The Institute of Economic Affairs (IEA) has cautioned the Government of Ghana on the lithium mining agreement it signed with Barari DV Ghana Limited.
The Institute has indicated that, the agreement requires ratification by parliament as per Article 268 of the 1992 Constitution in order to be legally effective.
A swathe of land was leased to the Barari DV Ghana at Ewoyaa in the Mfantsiman Municipality in the Central region and granted rights to mine lithium and ‘other associated minerals’, for a term of 15 years from the date of the agreement. Already, the Minority in Parliament has called on the government and the beneficiary company to present the agreement for ratification before it is executed.
“The IEA firmly believes that the terms of the agreement, which the Minister of Lands and Natural Resources and the Chief Executive Officer of the Minerals Commission, have touted as favourable to Ghana and surpassing those of other lithium leases around the world, is not different in principle and substance from any Ghana’s previous colonial-type agreements, which over the years, have yielded very little to the overall benefit of the average Ghanaian”, it said in a statement released last week.
The Institute said “in modern best-practice, the exploitation or extraction of mineral resources is covered by either a joint-venture agreement – whereby the host country takes an agreed ownership in the mining company – or a service contract – whereby the host country contracts the mining company, selected through a transparent and competitive bidding process, to mine the mineral and be reimbursed for its cost of production plus a profit margin”.
It urged parliament to exercise caution and patience to secure a modern, best practice-based arrangement that will guarantee maximum benefit for the people of the Republic Ghana, “instead of the usual colonial-type lease that benefits foreign companies’, masquerading as investors, and their local cohorts”.
“The IEA recognises Ghana’s natural resources as the low-hanging fruits that can be leveraged to accelerate the development of the country and eradicate poverty within a generation. It is inexcusable that we continue to sell our birthright cheaply only to descend on Western capitals to seek reparation for the slave trade or beg for aid. President Paul Kagame could not have put it more eloquently when he said: If the Owners of Natural Resources Go around Begging, Then You Should Know There’s Something Wrong with Their Minds.”
“Yes, Ghana is rich, let us finally take full and meaningful control of the management of our wealth”, it added.
Ghana government granted Atlantic Lithium’s (ASX: A11) local subsidiary a mining permit for its flagship Ewoyaa project, which will be the West African country’s first lithium operation.
The 15-year permit allows the Australian miner’s unit Barari DV Ghana Limited to start building a lithium mine in the country’s Cape Coast region, around 100 km southwest of capital city Accra.
The decision comes after Atlantic Lithum’s almost six years of exploration and is part of Ghana’s strategy to tap into the global move towards electric vehicles and renewables.
The Ministry of Lands and Natural Resources has increased the royalty rate to 10% from the standard 5% and the state’s interest in the project to 13% from 10%, it said in a statement.
As part of the deal, Ghana’s sovereign wealth fund, the Minerals Income Investment Fund (MIIF), will acquire 6% in Ewoyaa and 3.06% in Atlantic Lithium, which will be required to list on the Ghana Stock Exchange.
The company will also work on developing a lithium processing plant to maximize the economic benefit of a mineral it has often shipped to China for processing, the ministry added.
“The Mining Lease is a major endorsement of the viability of the project and a landmark de-risking milestone in its advancement towards production,” Atlantic Lithium chairman, Neil Herbert, said in a statement.
“The Government of Ghana, which is eager to build upon its mining history that spans back over a century and diversify away from its long-standing gold production, has remained incredibly cooperative throughout our application process and we wholeheartedly welcome their support,” Herbert said.
Half of the lithium produced at Ewoyaa will be sent to a refinery of US-based Piedmont Lithium (NASDAQ, ASX: PLL), which is the Australian firm’s second-largest shareholder and has agreed to provide most of the funds for building the mine.
Atlantic Lithium aims to produce a total of 3.6 million tonnes of spodumene concentrate, or 350,000 tonnes annually, over 12 years from the site. That would make it the world’s 10th-biggest project, according to the company.
The Export and Import (Restrictions on Importation of Selected Strategic Product) Regulations, 2023, which seeks to limit the importation of 22 strategic goods into Ghana is facing stiff opposition.
In this regard, Parliament of Ghana has on three consecutive times aborted the introduction of the Legislative Instrument by the Trade and Industry Ministry.
The bill, if passed, will restrict the importation of 22 products into the country. These include; rice, guts, bladders, and stomachs of animals (offals), poultry, animal and vegetable oil; margarine, fruit juices, soft drink, mineral water, noodles and pasta. The other products to be affected include ceramic tiles, corrugated paper and paper board; mosquito coil and insecticides; soaps and detergents; motor cars, iron and steel; cement, polymers (plastics and plastic products), fish, sugar; clothing and apparel, biscuits and canned tomatoes.
The Minority’s strong opposition to the Bill in its current form is based on the concerns raised by various business groups which demands broader consultation by the government to reshape the Bill to avert any adverse effects on the country’s businesses.
To appreciate the contending adverse effects, a former Minister of Trade fears that other countries to be affected by the import restrictions may also ban major export commodities from Ghana.
“Mr. Speaker, my final caution as former minister of trade and industry, is you may, by this legislation, be inviting retaliatory measures from other countries”, the Member of Parliament for Tamale South constituency, Haruna Iddrisu said in his contribution in parliament last week. “Other countries may decide that you have said okay I am restricting the import of rice and sugar so we will restrict the import of your processed okro into our trade regime. That will have consequences on the very balance of payment and export regime you want to regulate. Particularly, the euro.”
The President of the Ghana Union of Traders Association, Dr. Joseph Obeng, says government must provide details and timelines for the implementation of the bill.
“What we are expecting is that we have aims and objectives for this policy, and it is not spelt out for even journalists to propagate it well. What is it that we are using the LI to achieve? We want to enhance local productivity. We want to attain self-sufficiency for a period of time. And what are the timelines for this? It doesn’t spell out the timelines. We are not doing this policy in the abstract. All that we are saying is that we should know the timeline so that when we are going to be restricted, we can hold on to something,” he said in an interview.
To this, CUTS International believes the government’s decision to restrict the importation of 22 products in the country was rushed, citing other countries where years of planning go into such policies before implementation.
“It appears someone woke up one morning, went to the office, and said, ‘Let’s do this.’ In most countries, literature tells us that about 45 years of planning go into such measures. They identify the products they want to restrict, the measures needed to improve local capacity, and the constraints of local production”, West Africa Director, Appiah Adomako Kusi, contributing to the ensuing debate about the L.I. in an interview said.
“Once you address all of these things, then you give the market, consumers, and businesses a bit of notice, saying, ‘From 2026, there won’t be imports into the country because we have an excess of rice, wheat, or sorghum in the country.
“Here is the case we don’t have these commodities in excess and whenever you want to do this, the problem is that it’s going to shoot up prices and then consumers are going to be worse off. You will see politicians trying to capitalise on it to make money. I think that we will need to go back to the drawing board. At least we are supposed to have seen all these measures in the 2024 budget. What are the specific measures the budget is addressing on this?” he asked.
Already, six business associations that will be affected by the import restrictions bill have submitted a petition to Parliament in opposition to the proposed legislative instrument.
The groups under the umbrella name, Joint Business Consultative Forum, include the Ghana Union of Traders’ Associations (GUTA), Food and Beverages Association of Ghana (FABAG), Importers and Exporters Association of Ghana, Ghana Institute of Freight Forwarders (GIFF), Chamber of Automobile Dealership Ghana (CADEG), and Ghana National Chamber of Commerce and Industry (GNCCI).
Apparently, the Association of Ghana Industries (AGI) has declared support to the bill.
Speaking at the opening ceremony of the 6th Volta Trade and Investment Fair in Ho, the National President of AGI, Dr Humphrey Ayim-Darkey, said “a recent legislative instrument that has been tabled by the Minister of Trade is facing significant opposition, but the Association of Ghana Industries believes that is the way to bring competitiveness to our country and therefore we have pledged our support to the Minister of Trade and the L.I that has been tabled as much as the principle is correct.”
“We believe issues regarding implementation can still be deliberated on where the committee and the chair of the committee and the reporting procedures regarding tabling of applications, the processes, and the role of the Minster of Trade and Industry to accept or deny applications for restricted products can be further discussed and brought to bear on our economy”, he said.
