The old narrative that the repatriation of profit by multinationals in Ghana, including mining companies, is a major cause of the depreciation of the cedi is facing pushback from the Ghana Chamber of Mines.
The chamber is strongly challenging this narrative, asserting that the sector has rather demonstrated financial responsibility and commitment to national development.
Chief Operating Officer of the Chamber, Ahmed Dasana Nantogmah, says the narrative of blaming the local currency’s depreciation on the repatriation by the mining industry is misleading and not grounded in facts.
Speaking at a press conference in Accra, the COO maintained that all mining companies return at least 74% of their gold export earnings into the country.
This, he says, has been the practice for the last 10 years, and hence cannot fathom why an industry bringing in significant forex into the economy could be blame for the cedi’s woes.
“I think that mining companies have always been responsible in their activities. Paying the taxes the right amount at the right time and supporting the state. But it’s not because when they repatriate their profits, it affects the cedi. Mining companies return over 74% of whatever they make into this country. And that has been the norm for the past 10 years,” Ahmed Dasana clarified.
He also touted the contribution of the sector to the economy, insisting that mining firms pay the right amount of taxes on time. He adds that they also make substantial financial contributions to Ghana’s economy through local reinvestment and social interventions.
To him, if the cedi is experiencing signs of stability today, the Chamber deserves all the credit and criticism.
“If what we are doing has led to this stabilisation, we are very happy to applaud ourselves,” he added.
The COO further attributed Ghana’s exchange rate movements to broader economic dynamics, including shifting global monetary trends and geopolitical pressures. He pointed to global tensions and the weakening dominance of the U.S. dollar as factors that have ripple effects on developing economies like Ghana.
Ahmed Nantogmah further revealed that the mining industry has been working closely with institutions like the Ghana Gold Board to deepen local value retention and reduce exchange rate volatility.
This, he believes, has laid the foundation for long-term currency stability which is very critical for Ghana’s macroeconomic health.
By these claims, the Chamber is rejecting the old narrative of profit repatriation as the major cause of the cedi’s depreciation and hence reshaping the public perceptions of the mining sector’s role in Ghana’s economy.
