Abandon Agyapa deal, E-Levy has replaced it – Economist to government

Lord Mensah321.jfif Dr. Lord Mensah, Economist and lecturer at the University of Ghana Business School

Thu, 19 May 2022 Source: www.ghanaweb.com

Ghana was unable to access Eurobond market at the time, Lord Mensah

Agyapa deal in the best interest of Ghana – Ken Ofori-Atta

MIIF plans to list 49% of Agyapa Royalties on London Stock Exchange, GSE

Professor at the University of Ghana Business School, Lord Mensah, has called on government to abort plans to collateralize the country's mineral resources.

According to him, the introduction of the controversial Electronic Transfer Levy (E-Levy) is to rake in revenue for the country, as well as, serve as a replacement for funds government had from the Eurobond market.

Professor Lord Mensah stated that the Agyapa deal which was earlier introduced in parliament was to rake in money as Ghana was unable to access the Eurobond market at the time, hence, the introduction of the homegrown remedy [introduction of E-Levy] for revenue.

He stated that there was no need for government to reintroduce Agyapa deal.

Speaking on TV3's New Day show on Wednesday, May 18, he said “I don’t and I wasn’t expecting Agyapa to come back again. E-levy has come, E-levy is more or less, for me, a replacement of Agyapa.”

“You have your human resources that you are taxing their activities, the transactions that they make and then you have the natural resources deposited as gold. At the time that we were looking at the Agyapa deal, more or less, the country was desperately looking for money. The signals were clear that the Eurobond market, where we raised the billions of dollars to offset the existing debts and get some proceeds for the development of this country, we were getting to a point where the investor communities have started shying away from us," he added.

His comment came after Finance Minister, Ken Ofori-Atta, at a press conference on May 12, disclosed government's plan to resubmit a revised Agyapa Royalties deal to parliament for consideration.

The Minerals Income Investment Fund (MIIF) has also disclosed moves to list 49 percent of Agyapa Royalties on the London Stock Exchange and the Ghana Stock Exchange.

The listing on both exchanges is expected to raise between US$450 million and US$700 million from gold royalties respectively.

In a statement sighted by GhanaWeb, Chief Executive Officer of MIIF, Edward Nana Yaw Koranteng, said the funds from the listing will be invested into national infrastructure and socio-economic amenities.

He added that special focus will be placed on mining communities across the country.

Source: www.ghanaweb.com
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