At a time when the government has made it a priority to attract more foreign direct investment into the country, the ongoing impasse between Engineers & Planners and the Azumah Resources over the Black Volta Gold Project has been identified as a possible reason that could ward off investors.
Economist, Dr. Theo Acheampong, says the escalating tensions between the indigenous company and the foreign firm could send wrong signals to investors who may decide to stay away.
For the economist, the seeming brewing international arbitration battle between Engineers & Planners (E&P) and Azumah Resources at a time the country wants to position itself as an investment hub is a contrasting development.
Dr. Acheampong suggests that the development is “a potential red flag” for investors who closely monitor the stability of the country’s regulatory and business environment before committing capital.
“Potential arbitration case looming with the new dimension of the E&P and Azumah Resources impasse. These things don’t send a good investment signal,” the economist and political risk analyst remarked.
The caution comes in the wake of sharp, contradictory claims by both companies. E&P, in an earlier statement widely reported by media outlets, indicated that it had successfully acquired Azumah Resources Ghana and Upwest Resources. The local company said it is taking full control of the Black Volta and Sankofa Projects.
Barely a day afterwards, Azumah Resources, in a counter-statement, has strongly denied any transfer of ownership. The company insisted it remains the lawful owner and has vowed to pursue arbitration at the International Court of Arbitration if any attempt is made to seize its concessions.
For foreign investors, this unresolved impasse, which has lingered on for months, raises critical questions: Who truly controls the assets, and how predictable is Ghana’s investment climate when such disputes spill into the public domain?
Moreover, the timing of the dispute further complicates matters. President John Mahama only last week wrapped up a tour of Asia, where he courted investors and pitched Ghana as “open for business.”
In Accra, foreign envoys have been directed to make investment attraction and trade expansion a priority in their diplomatic work. Against this backdrop, a high-profile clash in the mining sector risks undermining the government’s message.
For now, concerned Ghanaians, analysts, and industry players are urging swift clarity from regulators, including the Registrar of Companies and the Minerals Commission, to avoid fueling further speculation.
