The CEO of the Ghana Chamber of Mines, Sulemanu Koney, has refuted allegations that mining companies operating in Ghana are hoarding foreign exchange earnings offshore, a practice that some critics claim exacerbates the country’s dollar liquidity challenges.
According to the CEO, 75% of mining revenues are repatriated to Ghana, directly contradicting the accusations of offshore dollar hoarding.
He emphasized that the majority of mining companies operating in Ghana repatriate 75% of their total earnings back into the country. These funds are brought into the local financial system, contributing significantly to foreign exchange reserves and economic stability.
The CEO highlighted that mining firms comply with Bank of Ghana regulations which mandate a portion of their earnings to be held in local financial institutions. These regulations ensure that the mining industry supports the country’s balance of payments and foreign exchange availability.
Speaking on Joy News’ PM Express Business Edition, Mr Koney underscored the critical role these funds play in sustaining the local economy, stressing that the repatriated funds are essential for running mining operations, which are highly energy-intensive, and for covering expenses such as labour, power, and consumables.
“A lot of money comes back into the country, how do you pay for labour and diesel if the money is sitting offshore?” he quizzed.
Beyond foreign exchange contributions, the Chamber underscored the broader economic impact of the mining industry in Ghana. This includes significant contributions to GDP, employment, infrastructure development, and social programs in mining communities. The sector also provides substantial tax revenues to the government, helping to fund national projects.
The CEO argued that the narrative of offshore dollar hoarding is misleading and could harm the reputation of the mining sector, which plays a critical role in Ghana’s economic growth. He stressed that the industry operates within the legal frameworks established by Ghanaian authorities and works closely with regulators to ensure compliance.
The rebuttal comes amid growing concerns over Ghana’s foreign exchange situation, with the cedi facing depreciation pressures in recent years. Some critics have accused multinational companies, particularly in the extractive sectors, of holding large amounts of foreign earnings abroad, depriving the country of much-needed foreign currency.
However, the Chamber of Mines CEO insists that the mining industry has been a reliable contributor to Ghana’s foreign exchange inflows.
The Chamber of Mines has reaffirmed its commitment to transparency and collaboration with the government to ensure that mining continues to play a positive role in Ghana’s economic development. The industry’s contribution to foreign exchange inflows and the broader economy remains vital, especially in the context of the country’s ongoing efforts to stabilize the cedi and improve its fiscal health.
