Ghana’s Mining Laws Investor Friendly, Says Lands Minister
Samuel Abu Jinapor, the Minister of Lands and Natural Resources, has encouraged investors attending the 25th China Mining Conference and Exhibition to come to Ghana and invest, because its laws have several provisions that make the mining sector investor-friendly.
According to him, Ghana’s laws for the mining sector have provisions which exempt investors from paying import duties for plants and machinery they had imported for mineral operations.
Speaking at the Country Promotion Session at the ongoing 25th China Mining Conference and Exhibition in Tianjin, China, on Friday, October 27, Mr. Jinapor assured the investors that Ghana is a safe haven for their investments because the laws have respect for sanctity of contracts and accrued rights.
“Our laws, also, have several provisions that make the mining sector in Ghana investor friendly. These include, stability clauses that insulate investors from changes in laws and policies after the acquisition of their mineral rights; respect for the sanctity of contracts and accrued rights; capitalisation of expenditure on reconnaissance and prospecting; exemption from the payment of import duties for plants and machinery imported for mineral operations; and transferability of capital,” he said.
He explained that, “Additional benefits include the exemption of staff from the payment of income tax on furnished accommodation at mine sites; immigration quota in respect of approved number of expatriate personnel; and personal remittance quota for expatriate personnel free from tax.”
Mr. Jinapor told the investors that in order to reduce issues of bureaucracy and its associated problems that frustrate the business community, government decided to prioritise environment through regulatory reforms.
This, he noted, has led to the introduction of a Mineral Cadastral Administration System to improve mineral licensing administration.
“We have, also, prioritised improving the business environment through regulatory reforms, to reduce bureaucracies and bottlenecks associated with doing business in Ghana. These have led to the introduction of a Mineral Cadastral Administration System (MCAS) to improve mineral licensing administration,” he added.
According to him, “This system, together with the online application for mineral rights, improved access to information, and transparency in administration, has improved the ease of doing business in the mining industry in Ghana.”
Local partnership
To ensure the availability of domestic partnership for foreign investors, Mr. Jinapor said that the government established the Minerals Income Investment Fund (MIIF), as Ghana’s sovereign minerals fund, to serve as a strategic lever for investments associated with Ghana’s minerals and mining sector.
He mentioned that, with a strong emphasis on its corporate governance, MIIF has been able to establish itself as the local co-investor whose operations and involvement de-risks investments for other market players, as its recent investment in Atlantic Lithium shows.
Ghana, he stressed, has “a very stable governance system, which creates the enabling environment for businesses to thrive, and we respect the sanctity of contracts.”
He told the gathering that, “As you listen to the presentations from the various institutions and the discussions, I urge you to be mindful of Ghana’s conducive investment climate, and take advantage of this enabling environment to invest in the country.”
“Ghana, with her open society, vibrant economy, resilient democratic institutions, and where respect for individual liberties, the rule of law and the principles of democratic accountability are ingrained into her body politic, is ready for business.
“As host of the Secretariat of the African Continental Free Trade Area (AfCFTA), investors are assured of the opportunity to use Ghana as a launch-pad to reach the rest of the continent, and to maximise profit from investments.
“If there is any take-away from this forum, it should be a decision to invest in Ghana, a decision you will never regret. Let us come together and work for our shared benefit. Ghana is ready for business,” he assured the investors.
