Ofori-Atta: “We have superior knowledge of the markets to realise the Agyapa deal”

The Minister for Finance, Ken Ofori-Atta, has said that the current leadership at the Finance Ministry has superior knowledge of the capital markets and so will execute the Agyapa deal in a manner that will deliver value for Ghanaians.

“The skillset that the president has put at the Ministry of Finance is evidenced in how we were able to secure $2.2 billion when we came and there were no resources to help stabilise the economy,” the minister said.

“I think I have been in the capital market business since 1984, when I finished college, and my deputy Charles Adu Boahen has also been in the capital market business. So it is a point in time that our leadership has the knowledge about,” he said.

Eye on innovation

Ofori-Atta was speaking at a news conference on the Agyapa Royalties agreement, following demands by 15 civil society groups for a suspension of the deal.

At a news conference on Tuesday (25 August) the CSOs called on President Akufo-Addo to suspend the Agyapa Royalties agreement until all documentation covering the agreement is made public.

But Ken Ofori-Atta believes it is high time to reimagine Ghana’s future by using innovative ways of doing business.

“I don’t see anything wrong with the move to monetise the country’s mineral resources with the Agyapa Royalties deal.

“We have gone to do some of the largest bonds on the continent and our ratings have gradually become much better, and we continue to at least have gone to the market this year at the right time.

“Essentially, what we have done is to say [while] we are getting some royalties every year, there are major things we need to do to get big capital.”

Tax-efficient avenue

Deputy Finance Minister Charles Adu-Boahen, for his part, justified the selection of Jersey as a place for incorporation of the company as one of the soundest decisions the government has made.

He said it had decided to use Jersey because of the benefits of using a tax-efficient avenue to effect the deal.

“If we had decided to transfer the royalties to Agyapa that was in Ghana, we would have ended up in a situation where we would be paying tax twice.

“A lot of people have asked why Jersey. Jersey has earned a reputation for dodgy activities, but it all depends on your thinking.”

About Agyapa

The investment agreement between the Government of Ghana and the Minerals Income Investment Fund, Agyapa Royalties Ltd and ARG Royalties Ltd centres around transactions to monetise gold royalties entered into under the Minerals Income Investment Fund Act 2018 (Act 978).

The target is for the arrangement to make immediately available US$500 million, once executed, with another $500 million to follow.

Fred Dzakpata

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