News Guide Africa

Tag: Parliament

  • From Scourge to Sustainability: How Ghana is rewriting the rules of Its extractive sector

    From Scourge to Sustainability: How Ghana is rewriting the rules of Its extractive sector

    By Adnan Adams Mohammed, Financial and Economic Journalist and Mining Advocate

     

    Ghana’s extractive sector is undergoing its most radical transformation in decades, driven by a dual strategy of aggressive environmental enforcement and sweeping legislative reforms.

    For years, the narrative surrounding the country’s mineral wealth was dominated by the destructive footprint of illegal mining locally known as galamsey.

    However, recent milestones announced at the Government Accountability Series on July 15, 2026, by the Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, signal a structural shift. The state is transitioning from reactive policing to a comprehensive blueprint aimed at institutionalizing local community gains and pioneering multi-billion-dollar downstream industrialization.

    Dismantling the ‘Galamsey’ Empire and Erasing Red Zones

    The frontline battle against illegal mining has yielded historic tactical victories over the first half of 2026. In a series of highly coordinated operations involving the Forestry Commission and state military forces, enforcement teams arrested 258 suspects and systematically demobilized the heavy machinery fueling environmental degradation.

    The operations resulted in the destruction of 6 heavy-duty excavators, 765 changfan water-dredging machines, and 430 illegal structures erected inside protected ecosystems. Crucially, the government announced the complete eradication of “red zones” areas inside forest reserves previously overtaken by armed mining syndicates and rendered completely inaccessible to forestry officials.

    Speaking decisively on the enforcement surge, Minister Armah-Kofi Buah framed the crackdown as a non-negotiable defense of sovereign resources:

    “The fight against illegal mining is a defining environmental battle that our generation must fight. Our rivers are not for sale, our forests are not expendable, and our mineral wealth is a sacred national inheritance that we have a duty to protect. Let me be clear, the era of impunity is over.”

     

    Mandating Development: Schools, Water, and Clinics for Host Communities

    While security forces clear the forests, Cabinet has moved to fundamentally re-engineer the legal architecture governing legitimate mining. The executive has endorsed an overhaul of the 20-year-old Minerals and Mining Act, 2006 (Act 703), forwarding a revised bill to Parliament that dramatically shifts power back to local communities.

    The headline reform is the introduction of mandatory Community Development Agreements (CDAs). Under the previous framework, mining conglomerates could unilaterally dictate corporate social responsibility budgets, often leaving local populations without basic necessities. The new legislation legally caps mining leases at a maximum of 20 years (down from 30) and mandates that no lease will be operationalized without an independently negotiated agreement detailing infrastructure deliverables like clean water systems, schools, and health clinics.

    The Minister explained that the era of corporate hand-outs is being replaced by enforceable local rights:

    “There are always communities that complain about development. It is no longer going to be the choice of a mining company to decide, ‘I will give them some water.’ The community will negotiate its critical development needs with the mining company, and both parties will agree on those priorities.”

     

    Additionally, the revised law indigenizes the sector by introducing district mining committees as the preliminary gatekeeper for mineral licensing, effectively legalizing a new “medium-scale” mining tier designed exclusively for Ghanaian ownership and participation.

    Beyond Raw Exports: Aluminium and Steel Drive Industrialization

    The final pillar of Ghana’s extractive evolution aims to break the colonial-era cycle of exporting raw ore. The government is aggressively positioning the state as a processing hub by targeting integrated aluminium and steel manufacturing to anchor national industrial growth.

    Through the Ghana Integrated Aluminium Development Corporation (GIADEC), the state is actively engaging global financiers to construct a two-million-metric-tonne-per-year aluminium refinery. Co-located within a newly mapped Tema Industrial Park, the project aims to establish downstream facilities including a massive €300 million aluminium foil plant to eliminate Ghana’s hefty metal import bill and feed regional markets via the African Continental Free Trade Area (AfCFTA). Parallel progress is being recorded by the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), which has finalized a bankable feasibility report confirming high-grade iron ore deposits at the Shieni block in the Oti Region.

    Highlighting the economic imperative of value addition, Hon. Buah noted:

    “Our vision for Local Content is to ensure that Ghana’s mineral wealth creates lasting prosperity for Ghanaians. We are committed to building a mining industry where our people are not merely participants, but owners, investors, innovators, and manufacturers. The development of Ghana’s aluminium and iron industries will reduce dependence on imported metal products, create jobs, and drive industrial transformation.”

     

    The Author’s Verdict

    By simultaneously deploying military deterrence against environmental criminals, legally protecting host communities, and building domestic refineries, Ghana is moving away from purely extractive patterns.

    The success of this ambitious policy shift will ultimately depend on Parliament’s swift passage of the revised Act 703 and the continuous, transparent execution of downstream industrial partnerships. If sustained, this strategy could successfully transform Ghana from a mere source of raw materials into a self-reliant, green industrial powerhouse in West Africa.

     

  • Only 233 of 808 Presidential staffers are political appointees …as Jubilee House releases 2025 staffing report

    Only 233 of 808 Presidential staffers are political appointees …as Jubilee House releases 2025 staffing report

    By Adnan Adams Mohammed 

    The Office of the President has officially transmitted its Annual Report on staffing architecture to Parliament, revealing that the aggregate workforce at the seat of government and its ancillary offices stands at 808.

    The comprehensive document, covering the period from January 1 to December 31, 2025, was prepared in strict compliance with Section 11 of the Presidential Office Act, 1993 (Act 463). The statutory report furnishes Ghanaians with an exhaustive, transparent breakdown of the political appointees, civil servants, and public sector operatives stationed at Jubilee House, the Castle, and regional state lodges.

    According to the data, the total workforce is cleanly divided into 233 political appointees and 575 civil and public service professionals who form the administrative backbone of the executive branch.

    Political Stratum Features 233 Appointees

    The political echelon of the Presidency comprises three distinct tiers, totaling 233 officials. Notably, the report confirms there are currently just four Ministers of State stationed directly at the Presidency:

    ● Hon. Felix Kwakye Ofosu (Government Communications)

    ● Hon. Emmanuel Kwadwo Agyekum (Special Initiatives)

    ● Hon. Seidu Issifu (Climate Change and Sustainability)

    ● Hon. Lydia Lamisa Akanvariba (Public Sector Reform)

    A cadre of 39 “Political Staffers” encompasses apex leadership, including Chief of Staff Julius Debrah, Executive Secretary Dr. Calistus Mahama, and various senior presidential advisors and aides.

    The remaining 190 “Other Political Appointees” consist of technical coordinators, legal advisors embedded across key sectors, regional political coordinators, executive assistants, and political drivers.

    Civil Service Forms Core Backbone with 390 Staff

    Civil servants represent the single largest bloc within the Presidency, with 390 personnel distributed across core professional classes, specialized secretariats, and the presidential household.

    A group of 138 professionals make up the Core Civil Service Classes, led by an Acting Chief Director and supported by 37 administrative officers, 20 procurement and supply chain managers, 24 secretarial staff, and smaller teams of IT specialists, internal auditors, budget analysts, and research officers.

    Additionally, the Presidential Household Staff numbers 234 personnel. This operational unit includes 53 hospitality management staff (30 caterers and 23 stewards), 43 transport workers (5 managers and 38 drivers), 36 artisans within the Estate Division, and 16 mechanics at the State House workshop. The household brigade is rounded out by protocol officers, seamstresses, watchmen, gardeners, and 46 cleaners tasked with maintaining the executive facilities.

    The report also highlights two critical specialized units operating under the civil service umbrella: the Public Enterprises Secretariat (11 staff) and the Zongo and Inner-City Development Secretariat (7 staff).

    185 Public Sector Experts Seconded from Agencies

    To promote inter-agency synergy, 185 professionals from various state institutions are currently on attachment at the Presidency to provide essential technical and logistical support.

    Among these, the Public Works Department’s Prestige Division has deployed 53 workers to maintain the architectural integrity of presidential structures, while the Department of Parks and Gardens has stationed 51 personnel across presidential residences and State Lodges.

    Crucially, the Ghana Health Service has positioned 48 medical professionals at the Jubilee House Medical Centre a facility that serves both executive staff and the general public. Financial oversight and logistics are managed by 14 officers from the Controller and Accountant-General’s Department, 15 auditors from the Ghana Audit Service based at the Castle, and 4 personnel from the Ghana Postal Company.

    Staffing Matrix at the Office of the President

     

    Category Breakdown Total Strength

    Political Appointees Ministers (4) + Staffers (39) + Other Appointees (190) 233

    Civil Service Staff Core Classes (138) + Household (234) + Secretariats (18) 390

    Public Services on Attachment Parks & Gardens, GHS, CAGD, Audit Service, PWD, Ghana Post 185

    OVERALL TOTAL 808

     

    Commitment to Accountability

    The submission of this report highlights the executive branch’s ongoing commitment to the principles of transparency and institutional governance as mandated by law. By opening its staffing architecture to public and parliamentary scrutiny, the Presidency sets a strong benchmark for data-driven accountability across all state institutions.

     

  • Gov’t to lay ‘radical’ COCOBOD reform bill in Parliament soon … amid IMF demands for flexible farmgate pricing

    Gov’t to lay ‘radical’ COCOBOD reform bill in Parliament soon … amid IMF demands for flexible farmgate pricing

    By Adnan Adams Mohammed

    In the most sweeping legislative intervention in the history of Ghana’s cocoa sector, the government is set to introduce a landmark bill in Parliament within the coming weeks to radically restructure the operations, governance, and financing of the Ghana Cocoa Board (COCOBOD).

    It is designed as a historic legislative overhaul to mandate 50% local processing, abolish foreign syndication loans, and introduce quarterly price reviews for farmers.

     

    The structural overhaul aims to permanently dismantle decades-old operational inefficiencies, mandate high-value local processing, and transition the country away from its expensive reliance on offshore syndicated loans.

    The legislative push arrives amid heavy backing from the International Monetary Fund (IMF), which has intensified calls for deep structural changes to reduce astronomical operational costs, eliminate quasi-fiscal activities, and restore long-term financial stability to the state cocoa manager.

    Speaking at the prestigious Ishmael Yamson & Associates Business Roundtable in Accra, the Minister for Finance, Dr. Cassiel Ato Forson, formally announced the executive decision. He rejected growing public calls from some economic quarters to dissolve the state institution entirely, emphasizing instead that the government’s focus is on aggressive repositioning.

    “Cocoa board needs reforms. I do not believe in scrapping it, but I believe that we need to reform the cocoa board,” Dr. Forson asserted. “Cocoa board has served Ghana well. It has been a major source of foreign exchange. It has obviously suffered some mismanagement. It’s a fact that we need to recognise.”

    The Finance Minister disclosed that the final draft of the legislative framework is being processed for the legislature to consider and approve.

    “Government has taken a decision to reform the cocoa board. I’ll be going to Parliament in the next few weeks to introduce a new bill to Parliament reforming the Cocoa Board and changing the structure of the Cocoa Board,” Dr. Forson revealed.

    The industrialisation mandate

    A centerpiece of the upcoming bill is an aggressive statutory shift toward domestic industrialisation. For over seven decades, Ghana’s cocoa model has been heavily anchored on the export of raw cocoa beans, leaving the country vulnerable to volatile global commodity markets and starving local processing factories of raw materials.

    Dr. Forson stated that the new law will legally compel a structural shift in value retention.

    “For example, the bill is set to make sure that at least 50% of our raw cocoa is processed locally,” the Finance Minister declared. “We’ve been shipping out our cocoa for too long and so we want to stop that.”

    IMF demands and the new domestic funding model

    The legislative push coincides with an explicit directive from the IMF following its latest macroeconomic review of Ghana’s economic recovery programme. While endorsing the aggressive cost-cutting measures already being deployed, the global lender warned that the industry’s survival hinges on legally cementing flexible, market-driven pricing mechanisms.

    In its mission summary, the IMF stated: “Priority should be given to strengthening the legislative framework to streamline costs, including through more frequent farm gate price adjustments, improve efficiency, and ensure COCOBOD’s long-term financial sustainability.”

    The Fund argues that rigid, annualized farm gate pricing leaves COCOBOD carrying the financial brunt of global market shocks, exchange rate fluctuations, and inflation.

    In response to these perennial fiscal imbalances, COCOBOD’s new management, led by Chief Executive Dr. Randy Abbey, has already finalized a groundbreaking strategy to completely abandon legacy multi-billion-dollar foreign syndicated loans ahead of the upcoming 2026/2027 cocoa season, opting entirely for a domestic financing framework.

    Dr. Randy Abbey explained that this transition will be directly paired with the dynamic pricing adjustments demanded by international partners.

    “The new funding model will come with a new pricing mechanism which will involve periodic reviews, maybe quarterly, and will be used for the entire crop,” Dr. Abbey disclosed.

    The COCOBOD Chief Executive reassured farmers that the new system is designed to protect, rather than diminish, their livelihood, maintaining the state’s baseline commitments while adapting to market gains.

    “The model would better protect farmers’ incomes from global cocoa price volatility,” Dr. Abbey added. He clarified that while the government remains firmly committed to paying cocoa farmers a minimum of 70% of the Free-On-Board (FOB) price, the introduction of periodic, quarterly price reviews will allow farm gate returns to dynamically shift upward alongside favorable exchange rates and global market surges.

    An end to ‘business as usual’

    To prepare for the parliamentary passage of the bill, the Ministry of Finance has already issued strict directives to the administration at the “Cocoa House” to enforce absolute expenditure discipline and curb legacy debts.

    A Ministry of Finance official, speaking on condition of anonymity, confirmed that the executive branch has mandated an immediate halt to unapproved spending.

    “Cabinet has directed the initiation of immediate reforms at COCOBOD to streamline their operations and cut costs. Wasteful and uncontrolled expenditure practices are to be curtailed immediately,” the Ministry stated.

    Sector analysts note that the dual alignment of the executive bill, COCOBOD’s internal shift to domestic financing, and the IMF’s insistence on legislative changes signals a definitive, historic end to the “business-as-usual” approach in Ghana’s most vital agricultural sector. As the bill heads to the parliamentary floor, both farmers and global commodity traders await the details of a framework that will reshape West Africa’s cocoa dynamics for decades to come.

     

     

     

     

  • Gov’t disburses over GH¢5.7bn to Common Fund, NHIF, GETFund for Q1

    Finance Minister Dr. Ato Forson briefing Parliament on Q1 statutory fund payments.

     

     

     

    By Adnan Adams Mohammed

     

    Assuring its commitment to deepened decentralised governance and improving healthcare and education services for all Ghanaians, the NDC government has disbursed all statutory budget allocations to various accounts for the first quarter of 2025.

     

    They include: the District Assembly Common Fund which received GH¢987.965 million; about GH¢2.033 billion disbursed to the National Health Insurance Fund; and the Ghana Education Trust Fund (GETFund) also receiving a total of GH¢2.710 billion.

     

    The Finance Minister, Dr Cassiel Ato Forson, made this known in Parliament on Tuesday, June 3, 2025, when he briefed the House on the payments to statutory funds.

     

    “Rt. Hon Speaker, our effort is driven by President John Dramani Mahama’s unwavering commitment to decentralised development, as articulated in Chapter Twenty (20) of the 1992 Constitution”, Dr Ato Forson said while reading his statement.

     

    “It is well established that the Metropolitan, Municipal and District Assemblies (MMDAs) have gone through severe financial strain over the past eight years due to the unfortunate recentralisation of the District Assembly Common Fund.

     

    “Rt. Hon. Speaker, it is evident that decisions taken in recent years have regrettably undermined the capacity of MMDAs to respond effectively to the pressing needs of our people at the local level.

     

    “Rt. Hon. Speaker, in the past eight years, a paltry 40% to 50% of transfers to the Common Fund were disbursed directly to the District Assemblies, thereby denying MMDAs the ability to spur local economic development.”

     

    Meanwhile, the finance minister assured that the Government under President Mahama is resolute in its determination to reverse this trend.

     

    “We are committed to adequately resourcing MMDAs and ensuring the effective and accountable utilisation of these resources.

     

    “In line with our promise to revitalise the local economy, the Mahama administration has prioritised improving the financial strength of the District Assemblies.”

     

     

     

    Read full statement below:

     

     

    STATEMENT TO PARLIAMENT

    BY

    DR. CASSIEL ATO FORSON (MP)

    MINISTER FOR FINANCE

    ON

    PAYMENTS TO STATUTORY FUNDS.

    3RD JUNE, 2025.

     

    1. Rt. Hon. Speaker, I am grateful for the opportunity to brief this august House on the payments to statutory funds.

     

    2. As a Member of this House, I am fully cognisant of the considerable interest that Honourable Members attach to this important subject, which lies at the heart of fiscal decentralisation.

     

    3.  First and foremost, I wish to express my sincere appreciation to colleagues for their continued cooperation.

     

    4. Mr Speaker, I will begin today’s brief with the District Assembly Common Fund (DACF).

     

    5. Rt. Hon Speaker, our effort is driven by President John Dramani Mahama’s unwavering commitment to decentralised development, as articulated in Chapter Twenty (20) of the 1992 Constitution.

     

    6. It is well established that the Metropolitan, Municipal and District Assemblies (MMDAs) have gone through severe financial strain over the past eight years due to the unfortunate recentralisation of the District Assembly Common Fund.

     

    7. Rt. Hon. Speaker, it is evident that decisions taken in recent years have regrettably undermined the capacity of MMDAs to respond effectively to the pressing needs of our people at the local level.

     

    8. Rt. Hon. Speaker, in the past eight years, a paltry 40% to 50% of transfers to the Common Fund were disbursed directly to the District Assemblies, thereby denying MMDAs the ability to spur local economic development.

     

    9. Mr Speaker, the Government under President John Dramani Mahama is resolute in its determination to reverse this trend.

     

    10. We are committed to adequately resourcing MMDAs and ensuring the effective and accountable utilisation of these resources.

     

    11. In line with our promise to revitalise the local economy, the Mahama administration has prioritised improving the financial strength of the District Assemblies.

     

    12. I wish to commend Members of this House for endorsing, as part of the 2025 Budget, Government’s proposal to ensure that a minimum of 80% of allocated DACF resources are transferred directly to the MMDAs.

     

    13. Without doubt, this measure will empower Assemblies to drive economic growth at the local level and deepen the process of decentralisation.

     

    14. Mr Speaker, through this policy initiative, Government is guaranteeing that approximately GH¢6.1 billion of the GH¢7.57 billion earmarked for 2025 will be disbursed directly to spur local economic activities at the district level.

     

    15. Mr Speaker, our focus extends beyond the mere release of funds. We have taken decisive steps to ensure that these resources are utilised in line with government’s economic objectives.

     

    16. Section 126(3) of the Local Governance Act, 2016 (Act 936), mandates Government to determine the categories of expenditure within the approved development budgets of District Assemblies that must be funded through the DACF.

     

    17. In compliance with this, the Cabinet of President Mahama has approved guidelines to ensure the prudent and accountable utilisation of these funds.

     

    18. The guidelines as approved by Cabinet are as follows:

     

    i. 25% of the amount transferred to the District Assemblies is to be utilised for the design and construction of 24-Hour Economy Model Markets.

     

    ii. 10% for the construction of health facilities (minimum of 2 CHPS compounds) per Assembly.

     

    iii. 10% for the construction of educational facilities (1 KG block, 1 primary school block and 1 Junior High School block).

     

    iv. 10% for the provision of potable water (minimum of 10 boreholes for rural Assemblies).

     

    v. 10% for environmental sanitation (solid and liquid waste management).

     

    vi. 10% for the provision of school furniture.

     

    vii. 5% for the administration of the Assemblies, including monitoring and evaluation.

     

    viii. And finally, recognising the need to complete abandoned legacy projects, including the numerous uncompleted structures left behind by the Middle Belt Development Authority, Coastal Development Authority and the Northern Development Authority, we have allocated a whopping 20% to fix the mess.

     

    19. Mr. Speaker, we are steadfast in our resolve to ensure strict adherence to the utilisation guidelines governing funds allocated to the Assemblies.

     

    20. Mr Speaker, we have transferred the sum of Nine Hundred and Eighty-Seven Million, Nine Hundred and Sixty-Five Thousand and Seventy-Three Ghana Cedis (GHS987,965,073.00) from the Consolidated Fund into the District Assembly Common Fund Account, being the first quarter amount due the DACF.

     

    21. The Administrator of the District Assembly Common Fund is required to ensure that 80% of this amount is transferred directly to the Assemblies without fail and expenditure returns submitted to the Ministry of Finance before subsequent releases will be made.

     

    22. Hon. Members are encouraged to monitor the utilisation of these amounts sent to their respective assemblies in line with the approved guidelines by Cabinet.

     

    23. Rt. Hon. Speaker, I am pleased to report that under the leadership of President Mahama and the NDC, for the first time in several years, transfers to all other statutory funds have been made promptly and in full.

     

    24.  Notably, all transfers due to the National Health Insurance Fund for the period covering January to March 2025 have been paid.

     

    25. A total amount of Two Billion, Thirty-Three Million, Four Hundred and Sixty-Nine Thousand, Six Hundred and Seven Ghana Cedis (GHS2,033,469,607)  has been disbursed to the National Health Insurance Fund.

     

    26. These disbursements have enabled the National Health Insurance Scheme to settle arrears owed to healthcare providers and to implement the Free Primary Healthcare and Ghana Medical Care Trust programme, also known as ‘Mahama Care’.

     

    27. Similarly, Mr Speaker, the Ghana Education Trust Fund (GETFund) has received a total of Two Billion, Seven and Ten Million, Two Hundred and Twenty-Seven Thousand, Nine Hundred and Forty-Seven Ghana Cedis (GHS2,710,227,947.00) for the months of January, February, March and April, 2025.

     

    28. As earlier announced in the 2025 Budget, funding for the Free Senior High School Programme is now fully covered under the GETFund.

     

    29. Consequently, the challenges, including feeding, which previously impeded the smooth implementation of the programme, have been resolved.

     

    30. Rt. Hon. Speaker, these payments are a clear reflection of our commitment to meet all statutory obligations in our priority sectors.

     

    31.  I encourage Honourable Members to continue to support our efforts as we chart a new course.

     

    32.  Let us work together to strengthen the Metropolitan, Municipal and District Assemblies and position them as engines of local economic development.

     

    33. Rt. Hon. Speaker, I thank you.

     

  • Gov’t reset agenda gets a lift …two important bills passed by Parliament despite concerns

     


    “Parliament passes key bills for economic reset.”

     

    Adnan Adams Mohammad

     

    Parliament has approved two most important bills which give a lifeline to the reset agenda as envisioned by the President John Dramani Mahama led administration.

     

    The Appropriation bill and Ghana Gold Board bill are key instruments that allow the government to execute crucial economic policies stated in the 2025 budget statement.  While the Appropriation bill allows the government to spend  its budgetary allocations from the Consolidated Fund, the Goldbod bill sets a solid foundation for the restructuring of Ghana’s gold trading and export framework.

     

    The government is permitted to spend GH¢293 billion from the Consolidated Fund and other public funds for the 2025 financial year per the Appropriation bill with GH¢68 billion allocated for wages and salaries and GH¢13 billion for the payment of arrears.

     

    “Hon. members, the Appropriation 2025 is now read the third time and accordingly passed”, the First Deputy Speaker, Bernard Ahiafor, said in Parliament concluding the approval of the 2025 Appropriation Bill.

     

    Meanwhile, the Goldbod bill is to regulate the gold industry, enhance transparency and traceability, and boost foreign exchange earnings.

     

    It will oversee the purchase, sale, and export of gold, generating forex revenue needed to stabilize the cedi.

     

    Despite criticism from the minority caucus, who argued that the bill promotes illegal mining activities, also known as ‘galamsey’, the house approved the bill by a majority decision.

     

    The Majority Leader, Mahama Ayariga hailed the bill as a landmark legislation.

     

    “Mr. Speaker, this is a landmark legislation. And those of us who sat through the night to the morning to pass this historic legislation Bill should be proud of ourselves. We have vindicated the trust and confidence Ghanaians reposed in us” he asserted.

     

    “Indeed, the 24-hour economy has started in this chamber.”

     

    This followed a walkout by the Minority in Parliament during the consideration of the Ghana Gold Board Bill 2025.

     

    This was in response to the First Deputy Speaker, Bernard Ahiafor, disregarding their request to reconvene at 10 am on Saturday, March 29, to discuss the bill after passing the 2025 Appropriation Bill.

     

    Addressing journalists, the Minority Leader, Alexander Afenyo-Markin, questioned the government’s commitment to combating illegal mining, citing the allocation of GH¢4.6 billion to the policy as a major concern.

     

    Afenyo-Markin added, “If you say bring an enactment and say your focus is on small-scale mining, all of us in this country know that small-scale mining is galamsey. Is this government really ready to fight galamsey?

     

    “How do you say you’re establishing a new entity that is going to monopolize the purchase of gold from small-scale miners, and now you are going to regulate galamsey and you’re going to give them money?”

     

    Also, former Finance Minister, Dr Mohamed Amin Adam raised concerns over the structure of the proposed GoldBod initiative, cautioning that its design could create conflicts of interest.

     

    Speaking in Parliament during deliberations on the GoldBod Bill, the Ranking Member on Parliament’s Finance Committee argued that international best practices discourage institutions from combining commercial operations with regulatory functions.

     

    “The model where institutions are established to play multiple roles—combining commercial functions with regulatory oversight—is being discouraged worldwide,” he stated.

     

    He explained that best practices require a clear separation between commercial and regulatory functions to ensure proper checks and balances.

     

    “The best practice now is to separate the commercial role from the regulatory function so that effective oversight can be maintained,” he added.

     

    Consequently, Dr. Amin Adam warned that, if passed in its current form, the GoldBod Bill would create an entity that trades, exports, regulates, and adjudicates disputes in the gold sector.

     

    “If this bill is passed, GoldBod will be a commercial entity that trades and exports gold while also acting as a regulator and court. That is not right,” he cautioned.

     

    He cited the oil sector as an example where Ghana successfully separated commercial and regulatory roles, pointing to the Petroleum Commission and the Ghana National Petroleum Corporation (GNPC).

     

    “In the oil industry, the previous administration separated the Petroleum Commission from GNPC, ensuring that GNPC focused purely on commercial operations while the Petroleum Commission handled regulation,” he explained.

     

    Dr. Amin Adam warned that failing to implement a similar structure for GoldBod could create conflicts of interest between regulatory oversight and commercial activities.

     

     

    The GoldBod initiative, proposed by the government, aims to formalize gold trading, particularly within the small-scale mining sector, while promoting traceability to enhance Ghana’s international gold reputation.

     

    The government envisions GoldBod as the sole buyer of gold from licensed small-scale miners through accredited aggregators, as well as the sole assayer. Officials argue that this approach will curb gold smuggling, improve foreign exchange reserves, and stabilize the cedi.

     

    Currently, gold purchasing in Ghana involves multiple entities, including Precious Minerals Marketing Company (PMMC), Bank of Ghana (BoG), Minerals Income Investment Fund (MIIF), private gold aggregators

     

    However, Dr. Amin Adam commended the Bank of Ghana’s Domestic Gold Purchase Programme, launched in June 2021, for significantly boosting Ghana’s gold reserves.

     

    He noted that before the initiative, Ghana’s total gold reserves stood at 8.74 tonnes. However, by the end of 2024, this had increased to 30.5 tonnes—a remarkable improvement in just three years.

     

    “Since independence, Ghana’s gold reserves stood at 8.74 tonnes. But within three years, we increased this to 30.5 tonnes. This shows that the previous gold purchase program was effective,” he said.

    The Bank of Ghana under its new executive management is continuing the domestic gold purchase programme but is discontinuing the gold for oil initiative introduced by the previous administration.

     

    Dr. Amin Adam’s remarks underscore concerns about potential conflicts of interest in the GoldBod structure, urging Parliament to ensure proper oversight in the final legislation.

     

     

  • Parliamentary deadlock delays $300mn World Bank funding – Fin Minister

     

    Finance Minister Dr. Mohammed Amin Adam

     

    The government has acknowledged that an ongoing parliamentary deadlock is preventing the disbursement of US$300 million in World Bank funding, vital for stabilising Ghana’s economy and addressing fiscal deficits.

     

    The funds, part of a larger financial support package from the World Bank, remain inaccessible due to the unresolved impasse in Parliament, which has been in indefinite recess as the two main political parties dispute control of the majority of seats.

     

    “We should have passed some legislation that would have qualified us for US$300 million from the World Bank. However, the World Bank has not disbursed the money because those bills have not been passed, as Parliament has not been functioning as it should,” Finance Minister Dr. Mohammed Amin Adam said during his monthly economic update, last week.

     

    The Finance Minister expressed optimism that the impasse would soon be resolved, allowing Ghana to access the crucial funds without significant delays. He also reassured the public that the government remains committed to delivering its policy priorities, despite the political gridlock.

     

     

    “We are focused on delivering our policy priorities for sustained economic growth. The budget has been presented to Parliament. We are waiting for Parliament’s own time. If this current Parliament doesn’t pass it, the next Parliament will approve it,” the Minister said.

     

    He emphasised that: “Certainly, if Parliament is not functioning, it affects the government.”

     

     

    Concerns have arisen that the parliamentary deadlock could lead to a potential government shutdown next year, particularly impacting the payment of salaries for public sector workers.

     

    However, the Finance Minister remains hopeful that a swift resolution will allow the government to present the mini-budget and avoid such setbacks.

     

    “To say that the economy has not been affected would be an understatement,” Dr. Adam admitted, acknowledging the far-reaching consequences of the parliamentary stalemate.

     

    Parliament is expected to reconvene on Monday, 16 December 2024, which may pave the way for the resolution of the deadlock and the release of the crucial financial support for the country.

     

     

     

     

     

  • Ghanaians to expect mid-year budget review on July 23 .

     

    Dr Mohammed Amin Adam

    Adnan Adams Mohammed

     

    All things being equal, the finance minister is to present the 2024 Mid-Year Budget Review to Parliament tomorrow, Tuesday, 23 July 2024.

     

    This presentation will provide updates on the implementation of the 2024 Budget and insights into the country’s economic and fiscal performance for the first half of the year.

     

    “The budget review is necessary for introduction of new measures to rejuvenate the economy”, Dr. Mohammed Amin Adam, the Minister for Finance, has said.

     

    Majority Chief Whip Frank Annoh-Dompreh announced the upcoming presentation while presenting the Business Statement for the week to the House.

     

    “Hon members, the Minister of Finance is expected to present the Mid-Year Review of the Budget Statement on Economic Policy of the government for the 2024 financial year on Tuesday, July 23,” he stated.

     

    This mid-year review is highly anticipated as it will shed light on the government’s progress in executing its economic policies and managing fiscal resources.

     

    It will also outline any necessary adjustments to ensure the country’s financial stability and growth for the remainder of the year.

     

    Already, Ghana’s economy is being touted by the World Bank in its latest Country Policy and Institutional Assessment (CPIA) report and the Moody’s, and international rating agency.

     

    Moody’s recently hinted that Ghana’s economy is likely to witness credit ratings upgrade after it successfully restructured its Eurobonds.

     

    Currently, Ghana’s rating stands at Caa3 for local currency and Ca for foreign currency. These ratings reflect the government’s ongoing debt restructuring efforts under the G20 common framework, initiated in December 2022.

     

    Moody’s, in a recent report stated that, once the restructuring is complete, all ratings are likely to be aligned at a higher level, though still within the Caa-rating category due to liquidity constraints typically following a default event. The IMF program supports fiscal consolidation and funding access, benefiting from Ghana’s relatively robust institutional capacity.

     

    “..However, high inflation and tight monetary conditions remain key credit challenges”, New York-based ratings agency has said.

     

    The restructuring of local currency debt, excluding Treasury Bills, was completed in 2023. Regarding foreign currency debt, which constitutes nearly half of Ghana’s total debt, significant progress has been made.

     

    Last month, Ghana’s Ministry of Finance announced an agreement in principle with bondholders to restructure $13.1 billion of Eurobond debt, which accounted for 21% of Ghana’s total debt in 2023. Under this agreement, bondholders would forgo around $4.7 billion in principal without state-contingent triggers. This followed a June 12 MoU between the Finance Ministry and the Official Creditor Committee (OCC) to restructure $5.4 billion of official sector external debt. The IMF confirmed on June 28 that both restructurings are consistent with its program parameters, though the OCC has yet to confirm that the bondholder agreement is comparable in debt treatment to the MoU.

     

    Moody’s assesses Ghana’s economic strength at ‘ba2’, balancing the country’s growth potential in the oil and non-oil sectors against its small size and low wealth levels. The ‘caa2’ rating for institutions and governance strength reflects very weak fiscal and monetary policy effectiveness, which led to unsustainable government debt and the need for restructuring.

     

    Ghana’s fiscal strength is rated ‘ca’, indicating very weak debt affordability and a very high debt burden. The ongoing debt restructuring is expected to improve these metrics. Moody’s also highlighted Ghana’s susceptibility to event risk at ‘ca’, driven by elevated government liquidity risk due to high gross borrowing requirements and limited borrowing options.

     

    The outlook for Ghana remains stable, reflecting the ongoing foreign currency debt restructuring. Expected losses for bondholders align with the current ratings’ loss-given-default range. Moody’s indicated that a rating downgrade is unlikely, given the recent progress on foreign currency debt restructuring and the agreement’s terms with bondholders.

     

    However, if the agreement does not proceed, it could derail the debt restructuring process, potentially leading to downward pressure on both local and foreign currency ratings. Moody’s emphasized that they will likely upgrade the local and foreign currency ratings following the exchange of the Eurobonds.

     

    The June 24 agreement provides substantial debt relief to the government, complementing earlier local currency debt restructuring. The restructuring of official sector debt will bring additional, yet unknown, liquidity relief. Post-restructuring, Ghana’s ratings are likely to be higher, though still reflecting liquidity constraints.

     

     

  • $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.