GOVERNOR of Bank of Ghana (BoG), Dr Ernest Kwamina Yedu Addison, has stated that the central government has positioned itself strategically to serve a driving force to help meet the total minerals export target of US$ six million for 2018 fiscal year under review.
“In 2017, total mineral export amounted to about US$ six billion. And this year as of the end of October 2018 we are close to about US$ 5.8 billion. So we are on course to meeting the six-billion dollar target this year,’ the central bank governor disclosed.
Speaking to Today on the sidelines of the Ghana Mining Industry Awards (GMIA) in Accra last weekend, Dr Addison stated that in terms of Foreign Direct Investment (FDIs) flows into the economy, they identified that as of 2005 that the mining sector attracted US$ six billion in FDIs, accounting for nearly 60 per cent of FDI flows into the national economy.
That trend, according to him, showed that mining was indeed very important not only for export but also for FDI flows.
Looking at the fiscal management in terms of contribution of mining royalties into the economy, Dr Addison noted that this also increased significantly to US$ 749 million dollars from US$ 261 million in 2016.
He asserted that it is a major turn-around in the country’s macro-economic fundamentals which as “you can see benefitted us sincerely in 2017 with the stability that we saw in the performance of the currency.”
He stressed that “At the Bank of Ghana we are interested in the repatriation of foreign exchange and we are very happy to note the improvement in the repatriation of all export earnings into the country.”
He, therefore, encouraged the Ghana Chamber of Mines to adhere strictly to the retention of dividends even as “our domestic financial systems improve, the companies that operate in the system should continue to repatriate more of the foreign exchange that they are earning to inure to the benefit of the economy as a whole.
He stressed that importance of diversification and adding value to country’s mineral resources in order to improve all the forward and backward linkages in the mining industry.
That, he said, was the best way in which the Ghanaian economy can indeed enjoy the benefits of gold in particular to the local economy.
He touted that export of gold, cocoa, and oil were doing well and further stressed the need for the stakeholders in mining industry to pursue strong and bold policies to help transform the mining industry in the country.
Story: Freeman Koryekpor
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