Ghana’s Akufo-Addo to miners: ‘Respect the land that provides the riches’

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GHANA’S President Nana Akufo-Addo demanded mining deals be more beneficial for Africa on Tuesday, calling on governments to end fiscal incentives traditionally used to attract investment to countries long viewed as rife with risk.

Resource nationalism is high on the agenda at the African Mining Indaba in Cape Town this week as resource-holding governments, aware of the need for international miners to find new exploration territory, increase tax and royalty demands, Reuters reports.

Akufo-Addo, leader of Africa’s second-largest gold producer, said that the continent’s reputation of political instability was outdated and improvements in the rule of law should be reflected in countries’ relationships with mining companies.

‘I believe we have come of age. We should not have to give unusual tax and royalties incentives. And mining companies should not expect to make extraordinary profits on our continent,’ he told the conference.

Over the past decade, a number of African governments have reviewed mining contracts, seeking to recalibrate partnerships and increase their share of mining revenues.

Last year, Democratic Republic of Congo – the world’s biggest producer of cobalt – rewrote its mining code, ignoring the objections of miners. It cancelled existing stability clauses in contracts and raised royalty rates across the board.

Neighbouring Tanzania, once one of Africa’s most attractive jurisdictions for international investors, has also cracked down on the industry, hitting gold miner Acacia with a $190 billion tax bill.

 

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