The Government of Ghana’s ‘carried interest’ in mining operations, usually 10 percent, is “virtually useless” and has yielded zero dividends for government for years, Vice President Dr Mahamudu Bawumia has disclosed.
Also, he added it deprives the people of Ghana of considerable amounts of domestic revenue.
Vice President Bawumia made the disclosure at the launch of the IMF’s Regional Economic Outlook for sub-Saharan Africa in Accra on Tuesday 8th May, 2018.
Citing the issue of Ghana’s ‘carried interest’ in the mining sector, the Vice President stated that “If you look at the existing natural resource regime, Ghana in the mining sector for example, has a carried interest of about 10% and out of this carried interest the expectation is that Ghana will receive dividends.
“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. From 2012 it is largely populated by a matrix of zeros, so it means to a large extent, the carried interest in mining is virtually useless as far as Ghana is concerned because we are earning zero for it.”
“We need to re-look at this whole regime. The zero earnings is because many of the mining companies say they are not making profits to pay dividends but they keep mining notwithstanding the fact that they are unprofitable! What is needed is a regional strategy to mineral resource development, from gold to bauxite to manganese and iron, in order to move up the global value chain for each of these minerals.
“We therefore have to re-examine our natural resource control and governance strategy, our resource fiscal regime from exemptions to carried interest, and how to use our natural resources to build a better and prosperous economies.”
Vice President Bawumia underscored that the old model of relying on revenue from the export of unprocessed natural resources was no longer fit for purpose, and the time had come to introduce a new one, designed to meet our development challenges.
“The old paradigm of natural resource exploitation and exports of unprocessed agricultural products and raw minerals are no longer sufficient in order to grow our economies, create jobs and to meet social expectations in the provision of basic public amenities.”
The launch was attended by a number of high profile dignitaries including Mr Abebe Aemro Selassie, Director, African Department of the IMF; Annalisa Fedelino, Mission Chief for Ghana; Natalia Koliandina, IMF Resident Representative for Ghana; Ghana’s Senior Minister Yaw Osafo-Maafo; Finance Minister Ken Ofori-Atta, as well as the First and Second Deputy Governors of the Bank of Ghana, Dr. Maxwell Opoku-Afari and Mrs Elsie Awadzi.
DUSK Capital Unveils Investment Drive #CONQUERYOURFEARS
Leading financial institution, DUSK Capital, has finally unveiled its #ConquerYourFears campaign, aimed at reigniting the spirit of investment in the banked and unbanked public.
At an event held in Accra on Friday, the Ridge-based firm finally debuted what has become a socially progressive initiative on conquering fear when it comes to investment.
The launch crowned months of changing the narrative about fear and what it does to one’s aspirations. The campaign had massive endorsements from leading public figures and ordinary Ghanaians, some of who were present at the launch.
Addressing the gathering, Chief Executive Officer of DUSK Capital, Bernard Osei-Tutu said the campaign became necessary due to the fear most people had with maintaining a resolute investment attitude.
“As an investment bank, we realized that one of the biggest problems among the populace when it comes to investing money is fear. The fear of losing money inhibits many people from investing,” he said.
Osei-Tutu added that: “All of us, whether young or old have one fear or the other that holds us back; that inhibits us from taking that step in accomplishing our full potential…the Fear of failure, the Fear of being rejected, the Fear of being disappointed, the Fear of not living up to the expectation of others, the Fear of not being good enough and the list goes on.
“As a caring brand, we thought to ourselves, how can we provide that motivation, that confidence to help people achieve whatever dream they have? #ConquerYourFears is about confronting fear. It’s about overcoming all fears.
“We at Dusk Capital are excited about helping people to conquer their fears of investing and opening the doors into a brighter future.
“We encourage you to invest in your future by investing with Dusk Capital and enjoying the joy that comes with it.”
Dusk Capital is incorporated, duly licensed and regulated by the Securities and Exchange Commission (SEC) and the National Pensions Regulatory Authority (NPRA) to conduct business in Fund Management, Investment Banking, Private Equity, Corporate Advisory Services and Pension Fund Management. Dusk Capital uses strong product knowledge, innovative financial and capital market power to assist institutions and corporate clients in accessing local and global markets.
SEC’s Minimum Capital Requirement Hike Apt – Dusk Capital CEO
The CEO of Dusk Capital, Bernard Osei Tutu, has described as apt plans by the Securities and Exchange Commission (SEC) to increase the minimum capital requirement of investment banks from ¢100.000.00 to ¢5million.
SEC, Starr Business has gathered, notified all investment banking firms in the country of its intention.
SEC is expected to make an announcement soon and will give timelines for the firms to meet the capital requirement or lose their license.
The proposed increment will be the biggest percentage increment the investment industry has witnessed in more than two decades.
Speaking to Starr Business’ Osei Owusu Amankwaah, Osei-Tutu observed that the move was to ensure that “we [investment bankers] have the right resources because banking or the financial market is not a cheap market.”
“You need to have that financial muscle to be able to do what you are doing well. Hence, the capital requirement is very critical. For any banking institution you need to be very solvent and you need to be very liquid.
“If you don’t have that financial muscle…it is a simple matter, you don’t deserve to be in that industry. It is as simple as that,” he added.
Describing the move as a “good call” the Dusk Capital CEO opined that the increment from ¢100.000.00 to ¢5million was “just to say that if you are not ready and you don’t have the financial muscle to operate in this industry, then you don’t need to be there.”
“…I support that [increment] and we at Dusk Capital are ready to commit all the resources that we have to make sure that on a capital front we are duly capitalised and we are able to meet all insolvency issues that come up across,” stressed Osei-Tutu
Start-Ups To Enjoy A 3-Year Tax Holiday – Awal Mohammed
Start-ups and entrepreneurs operating in the country will soon breathe a sigh of relief with the coming in of a three-year tax holiday.
This initiative, according to the Business Development Minister, Awal Mohammed, forms part of government’s agenda, to support entrepreneurs create jobs to help reduce the unemployment rate.
Challenges that continue to plague entrepreneurs include lack of access to credits, access to markets, the stressful bureaucratic business registration processes among others.
Speaking with Ultimate Business after meeting with entrepreneurs in Kumasi, the Minister explained that with the tax holiday, entrepreneurs “can plough back their profits to expand”.
“We think that start-ups need some space to grow. The essence of all these is to create jobs for our people and improve livelihoods. We want to encourage that when start-ups take off, for the first three years, they need not pay taxes.
“They will plough back their profits, they expand their business and they can employ people. We’ll also help them with markets because there’s no point having a business that you cannot sell,” he said.
He continued that “another policy that we want to look at is that, 10 per cent of public funded projects or businesses should go to start-ups and that already give them the market to grow. It is not yet a policy but something that we’re pursuing.”
The Business Development Minister also revealed that government will from July this year begin disbursing some $10 million to some young entrepreneurs who have undergone training to create businesses.
He further made special mention of the contribution of women and persons living with disability to the business community, thus equally supporting to grow faster.
“We’ve trained close to 10,000 young people across the country and out of them, we are going to select 700 and give them money. The President has already ceded $10 million and that money will go to support young people in various professions. In July/August we will start disbursing this money.”
“Women constitute 52 per cent of this country and are very good business people. You cannot grow an economy without women participation and so this year we’re going to support at least 1,000 women; we’ll train them and we fund them to do business.”
“When we do that, they can expand, employ and improve the lives of people. The President wants to make sure that Ghana grows inclusively to make Ghana a business environment for Africa.”
The Kumasi Entrepreneurs Meet-Up was organized by the Kumasi Hive in collaboration with the Konrad Adenaeur Stiftung, the Ministry of Business Development and the Delegation of German Industry and Commerce in Ghana.
It was held under the theme: Enhancing Ghana’s Entrepreneurs and Start-ups; Elements of a Future Strategy/Policy by the Ghanaian Government.
In attendance were start-ups who are in technology, food and agriculture, energy, health, clothing, communication, education among others.
Sarkodie, Osei Kwame ‘Despite’, Others To Be Honoured At GH CAPTAIN’S Award
Osei Kwame ‘Despite’, Ernest Ofori Sarpong, Others To Be Honoured At GH CAPTAIN’S Award
John Dumelo Marries Nadia Buari’s Friend May 12
New Music: Stonebwoy ft Cassper Nyovest – Wame (Marry Me) ( Prod By Mr Leham )
Tell the world how your 2 mansions came about – Shatta Michy dares Shatta Wale
Hot Issues2 days ago
Breaking: NPP Invincible forces attack Tumu Divisional Police Station
Entertainment4 days ago
“I won’t go to Zylofon Media because I love my label” – Petrah
featured6 days ago
I Was Ready To Adopt A Child – Gifty Anti
Hot Issues6 days ago
12 Killed On ‘Ebony’s’ Road
Entertainment6 days ago
I’m The Last To Speak Against Women – KOD
Politics6 days ago
My Wife Is Competent For First Lady Job – Alabi
Tech6 days ago
How to Leverage Social Media to Boost In-Store Sales [Infographic]
General News6 days ago
90,643 Apply For NaBCo Jobs