Devils Below

💡Resource Nationalism Index [ GHANA ] Ghana is one of our favourite countries in the West Africa. Some time ago people used to call it "Gold Coast" for there is so much gold in Ghana that it almost literally lies underfoot. However, when resources are abundant, they are also hard to control. Let's look into how Ghana copes with its wealth inour "Resource Nationalism Index" series. Not surprising, gold is by far Ghana’s leading mineral export. Also Ghana exports some crude oil. So, what do the policies of Ghana in relation to its natural wealth look like? 🔸"Process It First" – 2/10 – Ghana has announced plans to impose some bans on unprocessed materials exports, however, even this only concerns minerals like bauxite, lithium and so on - without any restrictions on gold. 🔸 "Share With the State” – 6/10 – The government has the first right to purchase any minerals produced in Ghana before they are sold externally, should the government need those minerals for local industries or strategic purposes. Besides, Ghana's Gold Board has a monopoly to buy gold from small-scale miners. 🔸 “We’re in Too!” – 6/10 – The government is entitled by law to a free carried interest of 10% + large mining rights holders are required to list at least 20% of their equity on the Ghana Stock Exchange. 🔸 “The Money's Yours, the People Are Ours" – 9/10 – All small-scale mining is reserved for Ghanaian citizens, and in large-scale mining almost all employments must be localized within 3 years of operations. 🔸“Just Pay Up" – 3/10 – For gold and other major minerals, the government’s revenue take includes only a 5% gross flat royalty. 🔸"You Come – You Build" – 2/10 – Currently there is no separate community development requirements, however Ghana’s government has announced plans to introduce ones. 🔸“We’ll Do It Ourselves” – 8/10 – New manufacturing entities in Ghana’s free zones may get a 10-year tax holiday. Additionally, Ghana has two major state corporations producing aluminium and iron, and a state-run oil producer GNPC. The state supports local gold refineries. Ghana also has a sovereign Minerals Income Investment Fund which takes stakes in mining. 🔸“Come Here, You Bast*rd!” – 3/10 – there are no rebel groups, however, Ghana faces a serious challenge with illegal mining operations, locally called “galamsey”, which account roughly for 30% of the country's gold production. Ghana gets a final score of 4.9 out of 10. Ghana is a country of contrasts - widespread illegal mining, primitive taxation and absence of raw exports restrictions coexist with strong local personnel promotion and the state's proactive role in investments. #Ghana#ResourceNationalism Devils Below