Pulse.com.gh logo
Go


Dr. Bawumia Ghana's veep talks about how mining companies are exploiting the country

  • Published:

The Vice President, Dr. Mahamudu Bawumia has strongly indicated that government will not accept the instances where mining companies declare no profit yet engage in active production to avoid paying dividend to government.

Vice President of Ghana Mahamudu Bawumia says Ghana is losing out on mineral wealth and therefore looking into reviewing mining code and tax policies.

Bawumia notes that mining companies not being faithful with dividends to government is depriving Ghanaians considerable amounts of domestic revenue.

Addressing participants at the launch of the International Monetary Fund (IMF)’s Regional Economic Outlook for sub-Saharan Africa in Accra Tuesday, he stated that “when we look at the data, however, we see a matrix of zeros as far as the dividends that Ghana earned from this carried interest.

 

READ ALSO: Seychellois are living the best life in Africa but Ghanaians are not so far behind

While the Ghanaian government has a 10% stake in most mines in the country, it has yielded zero dividends for the country for years, Bawumia said.

He further underscored the need to introduce a model designed to meet the country's development challenges rather than relying on revenue from the export of unprocessed natural resources.

READ ALSO: IMF warns Ghana, other African peers of rising debts

The West African country hosts operations for gold producers from SA’s AngloGold Ashanti to Kinross Gold.

An exporter of oil and the world’s second largest cocoa grower, Ghana’s government is driving policies to derive more benefit from its commodities and discourage unprocessed exports.