Dr Mahamudu Bawumia, Ghana's Vice President, has encouraged mining corporations operating in Ghana and the West African sub-region to collaborate with governments and regulatory organizations to build a mining index on local stock exchanges that will benefit both mineral owners and investors.
The advantages of a mining index on the local market are significant, according to Dr Bawumia, since it allows the state, mining companies, beneficiary communities, and investors to obtain the necessary cash while also providing built-in incentives for all parties involved.
Dr Bawumia, speaking at the opening session of the three-day West African Mining and Power Exhibition and Conference (WAMPOC/WAMPEX) in Accra on Wednesday, June 1, 2022, urged African countries to accelerate the development of capacity to interact with the world's natural resources banks, fund managers, and leading stock exchanges to allow locals to benefit more from the minerals bequeathed to them by nature.
"In this context, let me issue a rallying cry to the major mining corporations operating in Ghana and the West African sub-region to strive toward the establishment of a mining index on our stock exchanges, therefore accelerating their growth and prominence in African mining."
"This would necessitate close coordination between local stock exchanges, their regulators, and mining companies to entice Ghanaians to hold listed greenfield exploration projects, as the upside on such investments tends to be larger," he said.
While noting the vast riches present on the African continent, Vice President Biden advocated for a careful balance between investors' profit-seeking goals and the long-term requirements of the people where the minerals are situated.
"While the availability of resources is important, the overarching goal for all parties should be the development of a carefully balanced mechanism to ensure that the state's resources benefit resource owners while also extending benefits to investors to ensure that the state is able to sustainably attract the needed capital, investment, and technical know-how from a world that has come to the continent."
"Importantly, the African Union has been critically reassessing the true importance of mining to host nation economies throughout the years." The African Mining Vision (AMV) was born as a consequence of these efforts in 2009.
"In essence, the African Mining Vision aims to ensure the transparent, accountable, egalitarian, and optimum utilization of Africa's mineral resources for broad-based, long-term socioeconomic development for host governments and citizens," he explained.
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