Tag: Dr. Ing. Kenneth Ashigbey

  • New MinCom CEO outlines his vision

    New MinCom CEO outlines his vision

    From Acting Mining Manager at Goldfields Ghana to an industry regulator role as the new Chief Executive Officer of the Minerals Commission, Isaac Andrews Tandoh, has laid his vision to transform Ghana’s mining industry.

    His leadership is expected to be anchored on the solid foundations laid by his predecessor, with a focus on balancing government policy direction and industry productivity.

    “A lot of good things have happened at the Minerals Commission. My predecessor built a lot of good things, capacity, building, infrastructure, and I believe these are fundamentals that we can stand on to drive the strategic direction of the government policy that we want to do,” Mr. Tandoh said on Joy News’ PM Business Edition on September 4.

    Drawing on over two decades of industry experience, he stressed that his professional background uniquely positions him to align national priorities with corporate realities.

    “If you ask what I bring to the table, at least, I have over 20 years of mining experience, so I’ve been on the other side and implemented policies, and I would know what will be beneficial to the company as well as the government,” he explained.

    For him, the role is not only about oversight but also about ensuring a fair balance between government interests and operational efficiency for mining companies.

    “So at least I should be the guy to be able to strike a balance between government policies and what actually drives productivity or efficiency for the companies on the other side,” Mr. Tandoh emphasised.

    Confident in his ability to guide the Commission’s mandate, he concluded: “So if you ask me, I think I mean the right position to actually advise the government on some of the things it wants to do based on the experiences and where I am coming from.”

    Mining Lease review

    The Acting Chief Executive has maintained that the planned review of Ghana’s mining and minerals laws are in line with current global practice and development.

    “What Ghana is doing now is not out of place, as most ‘gold rich’ countries are all reviewing their laws and regulations.”

    “We have engaged them, but have not finalized things, but the government is committed to ensure that all their issues are addressed,” he added.

    Isaac Andrews Tandoh also announced that the stakeholder engagement is about 99 percent complete, “however there are several things that we need to do, before the document is finally sent to parliament.”

    He also defended the government’s decision to review the development agreement for mining firms in the country.

    “Current development has shown that we don’t need stability or development agreements now. However this will affect fresh agreements and not the ones that already have a deal with the government,” he stated.

    Chamber of Mines concerns

    Already, the Ghana Chamber of Mines has strongly cautioned the government against proposals to cut the tenure of mining leases from 30 years to 15 years, warning that such a move could jeopardize investment flows, reduce long-term community benefits, and erode Ghana’s competitiveness in the global mining sector.

    Delivering its position paper on proposed amendments to the Minerals and Mining Act (Act 703) at a press briefing, last week, the Chief Executive Officer (CEO) of the Chamber, Ing. Dr. Kenneth Ashigbey, argued that mining projects are long-term, capital-intensive ventures that often require more than a decade of preparatory work before production begins.

    A shorter lease, he noted, would leave companies with little time to recover costs and generate fair returns

    “Reducing the tenure of mining leases to 15 years will curtail the available time for recouping investments, lower a project’s net present value, and compromise the viability of deep-seated or marginal ore bodies,” the CEO of the Chamber stated.

    Dr. Ashigbey also warned that a shortened lease period would discourage near-mine exploration, encourage “high-grading” of deposits, sterilize marginal ore bodies, and limit long-term corporate social investments in host communities.

    In comparative terms, he noted that Ghana would become less attractive to investors than peer jurisdictions such as Côte d’Ivoire, Burkina Faso, and Nigeria, where mining leases are tied to project economics rather than capped at a shorter term.

    Instead, he urged policymakers to maintain the current 30-year tenure provided under Act 703, alongside flexible renewal arrangements. This, he argued, is crucial for sustaining investor confidence, ensuring stable revenue for government, and supporting long-term socio-economic development in mining communities.

    “Mining is inherently high-risk and long-term. Any legal framework that shortens the investment horizon will only elevate Ghana’s tax burden relative to peers and deter new investments,” the CEO of the Chamber cautioned.

    The Chamber’s call comes amid a broader review of Ghana’s mining legislation, which also includes proposals to reduce stability agreements from 15 to 5 years, abolish development agreements for large-scale projects, and shorten prospecting license durations.

    While the industry body welcomed aspects of the review such as the creation of a medium-scale mining tier, it emphasized that lease tenure and stability agreements remain the bedrock of mining investment decisions.

    Background

    Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah at a recent Government Accountability series announced that the Government is currently working to review the country’s mining laws.

    He added that this will affect the Minerals and Mining Act, 2006 (Act 703), and the 2014 Minerals and Mining Policy,

    Armah-Kofi Buah described the mining sector as “the lifeline for millions of Ghanaians,” noting that the country’s rich deposits of gold, diamonds, bauxite, iron, salt, and other minerals must be managed to benefit all citizens, especially communities that directly experience the impact of mining activities.

    The Government, through the Minerals Commission, is introducing several sweeping changes aimed at correcting long-standing imbalances and promoting responsible mining practices. Some of the key reforms include:

    Time-bound Prospecting Licenses: Reducing the duration for which prospecting licenses are held, moving away from indefinite tenure to a clearly defined time-frame.

    Limiting Mining Lease Periods: The maximum duration for mining leases will be cut from 30 years to a shorter, agreed-upon period.

    Abolishing Development Agreements: In their place, Community Development Agreements (CDAs) will become mandatory, compelling mining companies to allocate a fixed percentage of their gross revenue to fund development projects in host communities.

    Introduction of Medium-Scale Licenses: A new three-tier mineral rights regime will include a specific category for medium-scale operations to ensure more tailored and inclusive licensing.

     

     

     

  • Reducing rate of E-levy to expand the economy.. stakeholders share ideas

    Reducing rate of E-levy to expand the economy.. stakeholders share ideas

    Adnan Adams Mohammed

    Many stakeholders  have called on the government to reduce drastically the rate of the Electionic Transactions Levy (E-Levy).

    The newest voice is the Chief Executive Officer of the Ghana Telecommunications Chamber who wants the rate to be reduced from 1.5% to 0.1%.

    Many economists and tech industry players see the introduction of the e-levy at 1.5% as counterproductive to both the government and the development of Ghana’s digital economy. The E-Levy, introduced in the 2022 Budget has performed poorly, raking in just about 10% of the expected revenue three months after its implementation. The levy, which was originally pegged at 1.75% was reduced to 1.5 percent after public agitations against the policy, stakeholders wants the rate reduced further.

    “Calling for a total scrap of the tax measure would be insensitive considering the government’s dire need for money amidst an economic turmoil, reducing it to 0.1% would revamp the digital economy thus generating more revenue for government”, Dr. Ken Ashigbey shared during a TV interview last week.

    “Our proposition is the fact that, you know, they should scrap it. But we need to be real, government needs money at this particular stage. The deficit position is not good for industry, it affects industry, it’s one of the things that would account for the depreciation of the cedi. The macros would be destabilized.

    “So we think that the best thing to do is to reduce the level. Some in the industry have talked about 0.5, but I have said that the best thing to do is to do 0.1.”

    Sharing his expectations, the Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana advised government to use the 2023 Budget as a big opportunity to correct the policy by reducing the rate significantly to encourage the public to pay the tax.

    He maintained that the budget gives government a unique chance to rebuild confidence in Ghanaians, by listening to the public through a reduction in the e-levy.

    “E-levy can be made better. It can be made more efficient. Let us reduce the rate to 0.5% and I am sure we can raise a lot of revenue,” Prof. Peter Quartey has said in Accra, last week, during a pre-budget discussion.

    Also, the President of the Association of Ghana Industries (AGI), Dr. Humphrey Ayim-Darke also called for a reduction of E-levy to cushion the operations of businesses.

    He stated that the levy in its current state imposes extra burden on businesses, already struggling with the current economic conditions in the country.

    “The E-levy must be reduced”, he said, explaining that businesses and consumers will always find legal means to avoid taxes if it increases their economic hardship.

    “We think one place that can be improved is the VAT system. We must block the loopholes in our VAT system and not introduce new taxes like e-levy that is not working” he said.

    Dr. Ayim-Darke also called on the Finance Minister to reduce taxes on raw materials for industry.

    He stated that such a policy will strengthen the operations of local industries to be globally competitive.

    Dr. Ken Ashigbey added that, while the government reduces the rate, they should also place a cap on it.

    He explained that, transactions that are 5,000 cedis and above should only attract a fixed e-levy rate to attract more large transactions on mobile money platforms.

    According to him, the current cap-less system makes it most undesirable to transact business with large sums of money via digital platforms.

    “You know, push the level down to 0.1 and then put a cap on it. Say 5,000 cedis. At 5,000 cedis the levy is fixed so that if anybody wants to send 10,000 cedis, you know, that will happen,” he said.

    “Take out the discrimination between the 20,000 that you give to the banks and then you give to mobile money so that the discrimination is not based on that,” he added

    On the other hand, Dr. Ashigbey is calling on the government to place a cap on the amount of cash that can be used in a transaction.

    According to him, when physical transactions are capped at 2,000 cedis for instance, people will be forced to transact business via mobile money platforms for large transactions.

    “Another innovative thing that we would say is that put a cap on any transaction that can be done by cash, so let’s say 2,000 cedis. If you want to do any transaction above 2,000 cedis use a digital means for mobile money, for the banks and all of that.

    “What will happen is that a lot of the things that happen underground… a lot of that you’ll be able to take them off and then you’ll be able to see a lot of movement in terms of cash and that also will help,” he said.

    “And then in terms of government payments, make sure that all government payments mandatorily are made simple and let people be able to pay so that tolls that people pay in the market and all that will use these digital means. And if you’re going to do that make sure that it is seamless, it’s not difficult to do,” he added.         

    Giving some more recommendations, Prof. Quartey stated that government can improve tax collection by bringing back road toll to improve revenue mobilisation.

    He pointed out that road toll is one of the most effective ways to collect and account for taxes.

    “I think that we can properly digitise road tolls through public-private partnership to make the collection of taxes effective. I think government must consider bringing the road tolls back”, he said.

  • 91% Ghanaians lack confident in judicious use of E-Levy funds – report

    91% Ghanaians lack confident in judicious use of E-Levy funds – report

    Adnan Adams Mohammed

    Ghanaians have registered their lack of trust in the government and fears the 1.5 per cent currently being charged on Electronic transactions (E-levy) will be used to fund development projects across the country an Afrobarometer Report has revealed.

    The survey report released by CDD-Ghana shows, out of the total sample size, only 9 percent of Ghanaians are confident that the government will use revenue from the E-levy to fund development. This means, about 91% Ghanaians have no confident in the government when it comes to judicious utilisation of tax monies.

    Amidst the high lack of no confident and on the issue of transparency, key stakeholders in the telecommunication space have advocated the rollout of measures and strategies that will inform people of how their taxes are being used.

    “I think it is fair to ask that if we’ve decided that we are taking this tax for a particular purpose, we are able to go back and see if it is being used for that particular purpose. For me, as a corporate governance student, I think that transparency and providing information, by the people who are in positions of responsibility is important”, Chief Executive Officer of the Ghana Chamber of Telecommunications, Dr. Ing. Kenneth Ashigbey, noted in a radio discussion last week.

    “And I don’t think we do enough of that. It is something we need to do constantly if we want to take out all the clouds and perceptions of suspicion. If we could even have a website that customers can go to find out with regards to how much is coming in and what the funds are being used for, it will be helpful,” he added.

    According to the Afrobarometer report, 51% of Ghanaians do not think government will invest the proceeds generated from the E-levy into development projects.  The report indicates that 24% of Ghanaians are not very confident that the revenue generated from the E-levy will be used for its intended purpose, while 15 per cent are somewhat confident that government will indeed use the accrued revenue for its purpose.

    Also, 47% of Ghanaians despite the charges on electronic transactions say they will continue to use electronic financial transactions.

    However, the report further indicated that, 49% of Ghanaians have disclosed that the E-levy will make them avoid or stop using electronic financial transactions.