Or what man is there
among you who, if his son asks for bread, will give him a stone? Or if he asks
for a fish, will he give him a serpent? If you then, being evil, know how to
give good gifts to your children, how much will your Father who is in heaven
give good things to those who ask Him!- Matthew
7:9-11.
Agyapa
in Asante Twi literary means a good father while agyabɔne is a bad one. From the above scriptural text, it is
evident that no good father will give his child a bad gift. In fact, a good
father leaves agyapade3 (inheritance)
to his grandchildren -Proverbs 13:22. In recent times, the Agyapa Royalties deal has generated a lot of public interest with
several conflicting views about whether the deal is indeed a good one for
Ghana.
The
Agyapa deal can be traced to June
2018 when Parliament passed the Minerals Income Investment Fund Act 2018 (Act
978). The object of the Act is to manage
the equity interests in mining companies, receive royalties on behalf of the Government
of Ghana and to provide for the management and investment of the assets of the
Fund. The Ministry of Finance revealed on 27th August 2020 that the Agyapa Royalties Limited is a gold
royalty company and its main purpose is to help finance gold mining companies
that want to develop new mining projects in exchange for royalties or revenue
once a mining company starts producing gold.[1]
The deal is valued at $1 billion.[2]
According to the Ministry, the deal is aimed at raising between $500 million
and $750 million upfront to finance the country’s development in four main
sectors: health, education, road infrastructure and housing.[3]
The expected revenue will also be used in the development of the mining communities.[4]
The
main opposition party in Ghana, the National Democratic Congress, as well as
Civil Society Organisations (CSOs) have expressed their displeasure over the Agyapa deal for a number of reasons. It
has been argued, that, the creation of Agyapa
Royalties Limited as an offshore company in a tax haven will pose a challenge
for the government to exercise oversight regarding the company’s activities.[5]
There has also been the argument that the deal is problematic because it has
been grossly undervalued.[6]
To the CSOs, the implementation of the policy lacks sufficient transparency.[7]
There has also been concerns about the hasty manner in which the government is
running to the stock market without addressing some issues raised by some concerned
citizens or stakeholders, thereby hindering consensus building on such a
crucial matter.[8]
The
Government has however issued a statement in response to the concerns raised by
the NDC and the CSOS, stating that the rationale for the deal being valued at $1
billion is mainly to attract investors.[9]
The Ministry of Finance had contended that the country has not benefited much
from its natural resources because value extraction ends immediately after
these resources leave the shores of the country hence the need for the Agyapa deal.[10]
It has also been argued that if it is acceptable to borrow today for the
future, why then is it not acceptable to use the nation’s assets today to
leverage its assets for tomorrow?[11]
Mining
industries have significant impact on the economies of countries with mineral
deposits. According to the Ghana Chamber of Mines’ 2019 Industry Statistics and
Data, the mineral royalties Ghana received in 2019 was GH¢1,006,668.50. Governments
therefore ought to be very circumspect in the management of mineral resources
and royalties. As a country, it is imperative we interrogate the Agyapa deal further to be certain that its
implementation will not be tantamount to selling Ghana’s birthright for a lump
sum of money to the detriment of generations unborn. We must critically analyse
the implications the deal would have on the future of gold revenue in the
country.
Fortunately,
the Special Prosecutor, Mr. Martin Amidu has recently commenced investigations
into the controversial deal and Ghanaians can only hope that the outcome of his
investigations will be timely enough to help us conclude on whether the deal is
indeed Agyapa or Agyabɔne.
Richard Obeng Mensah, author of If You Think of Your Opposition You Lose Your Position .The writer is an award-winning author of 7 books and over 200 articles. He is a certified life and leadership coach, a lawyer, a legal academic and a blogger. Blog: www.richard-obeng-mensah.blogspot.com Email: richardobengmensah@gmail.com © October 5, 2020
[1] ‘Agyapa Royalties best deal for Ghana’s Gold’ (2020) Ministry of
Finance https://www.mofep.gov.gh/news-and-events/2020-08-29/agyapa-royalties-best-deal-for-ghana%E2%80%99s-gold-ken-ofori-atta
accessed 4 October 2020
[2] ‘$1 bn Agyapa Royalties deal valuation was to attract investors-Buaben
Asamoa’ (2020) Ghana Web https://mobile.ghanaweb.com/GhanaHomePage/NewsArchive/1bn-Agyapa-Royalties-deal-valuation-was-to-attract-investors-Buaben-Asamoa-1050538
accessed 5 October 2020
[3] ibid (n 1)
[4] ibid
[5] ‘What you need to know about the Agyapa Royalties deal and the
controversies’ (2020) Ghana Web <https://mobile.ghanaweb.com/GhanaHomePage/business/What-you-need-to-know-about-Ayapa-Royalties-deal-and-the-controversies-104564>
accessed 4 October 2020
[6] ‘Government gambling on value of Agyapa Royalties deal-CSOs’ (2020)
Citi News Room https://www.google.com/amp/s/citinewsroom.com/2020/09/government
-gambling-on-value-of-agyapa-royalties-deal-csos/amp/ accessed 4 October 2020
[7] ibid
[8] ibid
[9] ibid (n 2)
[10] ibid (n 1)
[11] ibid
