Business
Ghana may lose $100m from gold exports by end of April 2023
Ghana may lose $100 million from gold exports by the end of April 2023, if the Bank of Ghana is unable to provide guarantee funding to the Precious Minerals Marketing Company (PMMC) to acquire gold from the licensed small scale miners.
This is coming after the ‘Gold for Oil’ policy was introduced in January 2023.
About 2000 kilogrammes of gold are produced every month by artisanal and small scale miners valued at approximately $120 million. But PMMC which used to buy an average of 2,000 kilogrammes of gold every month has not been able to purchase gold since the beginning of this month.
Chief Executive Officer of the Chamber of Bullion Traders, Dan Krampah, confirmed this to Joy Business and said “we will lose about $100m because the official channel through which gold will be sold that is PMMC is not on the market now. And instead of establishing offices in almost all the regions in which small scale miners operate…they have office only in Kumasi and Tarkwa”,
“It will be difficult for miners to travel long distances with gold to come and sell in Kumasi”, he explained.
The licensed gold exporters are unable to export the mineral because they have been barred from buying and exporting the commodity.
Mr. Krampah expressed sadness that members of the Chamber of Bullion Traders are unable to buy and export gold, a situation which has forced them to lay off some employees.
“The government assured us that the PMMC will be given funds by the Bank of Ghana to pre-finance the purchase of gold which was at 2.0 tons per month. So, we were expecting that this quantity and that amount will be readily available for licensed gold exporters to buy gold for export”.
“But the exporters have been prevented from buying because the policy is that now no licensed gold exporter should export gold. So that is what is happening now”, he added.
COCOBOD has assured that concrete steps have been taken to ensure it is able to secure enough funds to finance its annual cocoa purchases in the 2023/2024 crop season.
Against the backdrop of a reportage by Reuters that the firm had borrowed up to $200 million from cocoa traders to plug its funding gap, COCOBOD said it had adopted a two-prong financing strategy to ensure that it obtained the required funds for the purchasing season.
A statement from COCOBOD in response to the Reuters report indicated that it had had firm assurances from its bankers of making funds available in time for the purchasing season and that a “Cocoa syndicated Loan has been laid in Parliament for consideration and approval.”
Below is COCOBOD’s full statement.
FINANCING OF PURCHASES FOR 2023/24 CROP SEASON
There have been some recent publications in the news media in relation to funds for cocoa purchases for the 2023/24 Crop Season.
We wish to brief our stakeholders on this very sensitive national issue as follows:
COCOBOD planned a two-prong financing for the 2023/2024 Crop Season in an effort to diversify Its source of funding for the annual cocoa purchases.
The strategy was therefore, to use a prefinancing arrangement with the international buyers to raise an amount of US$400 million for purchases at the beginning of the Season in September 2023.
These initial funds were expected to be augmented by an additional US$800 million loan from a syndicate of lenders by the end of November 2023. After engagements with buyers for several weeks, the arrangement was however discontinued.
Thus, since the beginning of the Season, cocoa purchases have been financed with noncollateralized cocoa sales proceeds. COCOBOD is therefore still in the process of securing the syndicated loan for the 2023/24 Crop Season.
As a matter of fact, the Board has so far received firm response from our bankers in this regard, and the Cocoa syndicated Loan has been laid in Parliament for consideration and approval.
We wish to use this medium to assure our stakeholders that the necessary arrangements have been made to secure enough funding for cocoa purchases for the year under review.
ISSUED BY: PUBLIC AFFAIRS DEPARTMENT
Vice President Dr. Mahamudu Bawumia is actively seeking Czech investors for the country.
Dr. Bawumia emphasized that Ghana remains the best country in Africa for investment due to its stability, peace, and growth opportunities for businesses.
He made these remarks during his meeting with the Czech Prime Minister, Peter Fiala, at the Jubilee House in Accra.
“Ghana is an excellent place for doing business. We are the most peaceful country in West Africa and the second most peaceful country in Africa. It is crucial for anyone looking to invest in Africa to consider Ghana as the ideal destination for business.”
“I am confident that this will open up opportunities for our respective business sectors,” he stated.
South Dayi Member of Parliament, Rockson Nelson Dafeamekpor, has said that the ’24-hour Economy’ project conceived by the flagbearer of the National Democratic Congress (NDC) Former President John Dramani Mahama will turn the economy around if implemented.
Mr Mahama proposed the ’24hr Economy ‘ project when he met with officials of the country’s mother workers union on Tuesday, November 7, 2023 at the start of his engagement with key stakeholders in a quest to return to power.
Dubbed ‘Building Ghana Tour’, the interactions with the stakeholders is to apprise them of the policies the next NDC administration will implement to transform the economy.
At Tuesday’s engagement, he said “NDC was left alone as the solitary voice seeking to hold the government accountable and speaking up for the voiceless Ghanaian and we were often cast out as spoilt brats who were ranting just because we have lost power.
“Today, the chickens have come home to roost and we are all affected.”
Commenting on this in a tweet, Mr Dafeamekpor said “Some concrete Examples of John Mahama’s ‘24hr Economy’ Projects include Terminal 3 at Kotoka, Tema Port Container Terminal, New Ridge Hospital, Maritime Hospital, Tema, UGMC, Legon, Kejetia Market, Accra Data Centre, the TamaleTeaching Hospital. It’ll revolutionize the economy.”
Flood victims of Mepe receive relief items from Gospel Singer Joe Mettle
Rising Ghanaian artiste Cee Levelz releases new single “Confused”
Gov’t to restrict importation of rice, ‘yemuadie’ and other products
Mahama doesn’t understand 24hr economy; don’t vote for him – Bawumia
