The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has assured the international business community that any investment they will make in Ghana especially in the mining sector will be safe because country has stable democracy and good corporate governance.
According to the Minister, it was not for nothing that Ghana earned the enviable accolade, “the beacon of democracy in Africa.” He indicated that Ghana has for the past thirty years conducted successful elections and handed over power from one government to the other.
To him, the rule of law is the norm and not the exception, and it is the pivot around which governance architecture in Ghana revolves and that investors are guaranteed their rights, irrespective of the government in power.
“…Fortunately and significantly, in Ghana, the rule of law is the norm and not the exception.
It is the pivot around which our governance architecture revolves. With a stable democracy, spanning over thirty (30) years, peaceful elections and successful change of government from one political party to another, investors are assured of the protection of their rights, regardless of the outcome of national elections.
Our respect for the rule of law has earned us the enviable title of “the beacon of democracy in Africa”, Mr Jinapor pointed out.
The Minister was addressing delegates who gathered at the 20th edition of the African Down Under (ADU) conference in Perth, Western Australia yesterday.
ADU is a platform for engagement on matters pertaining to the mining industry and geared towards strengthening Australian – African relationship in the industry.
Giving more insight into how a stable democracy has enabled the country create a business-friendly environment, specifically the mining industry, the Minister said that one of the structures that has made the industry investor friendly is the law.
He listed some of these laws as the stability clauses that insulate investors from changes in laws and policies after the acquisition of their mineral rights and a law that has respect for the sanctity of contracts and accrued rights.
He also made mention of the law on capitalization of expenditure on reconnaissance and prospecting as well as the law that exempt one from the payment of import duties for plants and machinery imported for mineral operations.
Still on the law, Minister Jinapor said the government has an initiative where mining staff who reside in accommodations at mine sites are exempted from the payment of income tax on furnished accommodations and also a law on immigration quota in respect of approved number of expatriate personnel and personal remittance quota for expatriate personnel free from tax.
Aside the law, the Minister pointed out that the fiscal regime has also been softened to enable investors work.
“This includes a twenty percent (20%) straight line capital allowances along with a five-year loss carry forward provision designed to support mining projects whilst optimising government’s share of revenues for the development of a vibrant industry”, the Minister said.
On structures, Mr Jinapor said that government has introduced Mineral Cadastral Administration System (MCAS) to improve mineral licensing administration.
He said this system, together with the online application for mineral rights, has improved access to information and transparency in administration and the easy way of doing of business in the mining industry in Ghana.
Mr Jinapor indicated to the delegates at the conference that aside wooing investors, the government is committed to translating the minerals it has in its possession into money for the good of the citizens and that’s why it has softened the grounds for investors and not only because it wants to woo them.
“The priority of the Government of Ghana, however, continues to be the translation of these volumes of minerals production into wealth to benefit all stakeholders, equitably, including the larger populace as optimally as possible.
Government is, therefore, mindful of the need to implement mining-friendly policies to sustain these achievements while ensuring environmental sustainability and protecting the interest of citizens and investors alike,” he told the conference.
