News Guide Africa

Tag: Economic Development

  • Legal framework for Gold Board ready for Parliamentary consideration

    Ghana’s Parliament Building , where the Gold Board Bill 2025 was recently introduced

    By Toma Imirhe

    Amid calls for clarity on the structure, purposes and activities of the Gold Board  (referred to simply as Goldbod), being established by the President John Dramani Mahama administration, legislative proposals have now been drawn up for consideration by Parliament who will be required to turn them into law. However it is still unclear what the timelines for this process are since the bill has not yet been formally presented to Parliament.

    With gold prices having passed US3,000 per ounce last week for the first time, Ghana is looking up to gold industry revenues to make up for the ongoing slump in cocoa revenues and stagnant oil revenues. Indeed, the ongoing surge on gold prices was the primary driver of Ghana’s record high trade surplus of over US$4 billion achieved in 2024.

    The draft Act itself is: “To establish the Ghana Gold Board , regulate the purchase, trading and export of gold, promote value addition for the country’s gold resources and provide for related matters”

    The Board will be a corporate body operating as a commercial venture, with the objectives to regulate, oversee, monitor and undertake the purchase, trading, assay, refining, export and other related activities, concerning gold and other precious minerals of Ghana.

    To this end the Board will, among other things : promote the marketing of the country’s gold resources; institute policies and programmes to enhance local gold production and maximize the national benefit across the entire value chain of the gold resources of Ghana; provide support to small scale miners and mining communities; support environmentally sustainable  and responsible mining practices; serve as the national authority with the exclusive power to grade, assay, and value gold produced or brought into Ghana and ensure the most favourable arrangement for their commercialization;  serve as the national authority with the exclusive power to purchase, sell and export gold from the mining and marketing industry; set standards on the quality purity and weight of gold sold or exported from Ghana ; determine the pricing of gold on the local market; institute policies to promote vale addition to Ghana’s gold resources; combat gold smuggling; formalize the small scale mining industry;  promote supply chain sustainability from environmental, legal and ethical perspectives; and grant operating licenses and maintain a register licensed operators.  

    Goldbod’s governing body will be a Board of Directors comprising a Chairperson and a CEO, both nominated by the President; one representative each from large scale mining firms, small scale miners and gold service providers; one representative each from the Ministry of Lands and Natural Resources, the Bank of Ghana and the Ministry of Finance; and three other persons  with specialized knowledge and experience in matters relevant to the to the functions of the Board. Directors will hold office for a maximum of two four year terms.

    The Ghana Goldbod will be funded by monies approved by Parliament ( the 2025 budget proposes US$279 million for starts) ; fees payable by gold service providers and licensees; revenues accruable to the Board from its activities; administrative penalties; loans and investments; donations and grants; and any other  monies as approved by the Finance Minister.

    Central to Goldbod’s activities will be the operation of a Goldbod Fund, which primarily will provide concessional funding for licensed small scale miners, provide them with the right environmentally friendly equipment, train them, facilitate precious minerals processing and refining, and support alternative livelihood programmes for mining communities .

    The Fund will be financed from Goldbod’s own resources as approved by its Board of Directors, donations and grants, levies imposed by Parliament on gold mining products and services, and any monies as approved by Parliament.  

     

     

  • $335m tax waivers: minority fears of ‘organised crime traps’.

     

     

    Adnan Adams Mohammed

    The Minority Caucus in Ghana’s Parliament is alarmed with the value of tax waivers government is set to request on behalf of the companies under the One District One Factory (1D1F).

    The tax waivers amounting to over $335 million meant for 42 companies are awaiting parliamentary approval. Among the beneficiaries is the newly established Sentuo Oil Refinery Limited, set to receive the largest exemption of $164.6 million.

    Ghanaian Parliament

    In 2021, the Ministry of Finance initiated efforts to secure approximately $335 million in tax exemptions for these companies, part of the 1D1F initiative.These exemptions fall under the Exemptions Act, 2022 (Act 1083), presented to Parliament by former Finance Minister Ken Ofori-Atta. Yet, the obvious politicisation of such critical issue that needs patriotic scrutiny have started.

    “It is the considered view of the Minority that these requests for tax exemptions running into several billions of cedis, are unconscionable, inordinate and bear all the trappings of organised crime”, Minority Leader, Dr Cassiel Ato Forson criticised the exemptions.

    “..We in the Minority are serving notice that we shall resist these tax waiver applications fiercely! In their current forms, we shall resist each and every one of the tax waiver applications with all the tools and strategies at our disposal.”

    Hon Ato Forson, a prominent figure in the Minority, has strongly opposed advancing the entire exemptions list from the committee stage, citing irregularities with some listed companies and their respective requested amounts in tax exemptions.

    “The phenomenon of tax exemption as an avenue for corruption is a frightening development that threatens the domestic revenue reforms that the state is currently undertaking … The effect of these new taxes will result in the poor becoming poorer, suffocating industries and businesses and further increasing the hardships Ghanaians are already experiencing. This government is simply robbing Peter to pay Paul by exacting taxes from Ghanaians, only to dole out huge tax exemptions to their cronies for kickbacks. It is for this reason that we call on all Ghanaians to join us in this fight.”

    Meanwhile, the Majority Leader, Mr Alexander Afenyo-Markin, has also criticized the delays in the approval of the waivers as a deliberate move by the Minority to hinder the government’s efforts to attract investment into the country.

    Hon Afenyo-Markin accused that, the process has been impeded by extensive parliamentary delays, particularly due to demands for further deliberation and scrutiny by members of the Minority caucus.

    “The Minority also rejected a proposal to present 15 companies, deemed free of irregularities, to the floor of Parliament, leaving the Majority Leader visibly frustrated. While some arguments against presenting the list may have merit, the prolonged delay—now in its fourth year—raises concerns about an intentional effort to obstruct the government’s agenda.”

    The 1D1F initiative aims to transform Ghana’s economy from one reliant on raw material imports and exports to a manufacturing and value-added export economy.

    This private sector-led initiative involves government support to enable businesses to secure funding and additional assistance from government agencies to establish factories.

    This initiative aimed to signal to the international investor community that Ghana is a favourable environment for business, thus boosting economic contributions.

    These exemptions are designed to reduce operational costs, making it more attractive for businesses to establish and expand their operations.

    Without these incentives, affected companies may scale back their plans, leading to slower industrialization and fewer job opportunities, thereby undermining the 1D1F programme’s objectives.

    Moreover, the ongoing impasse could negatively affect investor confidence in Ghana.

    The perception of political gridlock and uncertainty surrounding the tax exemption process may deter potential investors, who fear similar bureaucratic hurdles and a lack of policy consistency in the future.

    It is imperative for Parliament to leverage its unique numerical composition to foster strong bipartisan relations for the benefit of Ghana.

    Healthy bipartisan collaborations invariably create more stable environments that favour businesses, irrespective of the government in power.

    Ensuring the timely approval of these tax exemptions could enhance Ghana’s industrialization efforts and signal to the global investor community that the country is committed to creating a conducive business environment.

    As the situation unfolds, the focus remains on whether Parliament can resolve these delays and move forward with the necessary approvals to support the 1D1F programme and the broader economic goals of the nation.