SONA 2021: Why Akufo-Addo Agyapa Royalties Deal return dey bore Ghanaians

Introduction

De Agyapa Royalties deal for Ghana stir chaw controversy since govment introduce am in 2020 as vehicle to raise monies for development.

Various Civil Society Organizations, anti-corruption campaigners den tins oppose de deal sake of dem raise concerns about conflict of interest.

But yesterday, President Akufo-Addo announce say dem go reintroduce de controversial Agyapa Royalties Deal to parliament for consideration but dis spark outrage among some Ghanaians.

He make de revelation during en State of Nation Address where he talk about de roadmap for development under en govment for de next four years. So what exactly be dis Agyapa Royalty deal?

Agyapa Deal explained

For so many years, govment dey try find various ways of raising money for development projects so say dem go shun dey borrow money from International Monetary Fund (IMF) den de bond and capital markets.

De reason loans from IMF be unattractive be sake of e dey come plus conditions which govment for implement like public sector job freeze, cut in public expenditure den tins.

De challenge be some of dis conditions dey affect growth and smooth running of de country de ways in which Ghana govment dey see fit.

De other challenge be say de interest on bonds and capital market loans be be high, sometimes exposing de country to huge debt profiles for years.

Sake dis, govment introduce Agyapa Royalties Deal as strategy to raise monies from de extractive minerals sector to finance development projects for Ghana.

De Agyapa Royalties Deal started like two years ago for Ghana after parliament pass de Minerals Income Investment Fund (Act 2018).

De plan be say dem go use de Agyapa Royalty Deal to manage de equity interests of Ghana in mining companies den also receive royalties on behalf of the government.

Now, dem go invest de royalties den monies dem go receive through de fund - so say dis go generate better profits for development projects den stuff for Ghana.

Public opposition to de deal

Whereas some Ghanaians feel say dis deal be good for Ghana sake of de development dis go bring, some people dey oppose de deal sake of concerns about de role of some govment officials, family and friends of President Akufo-Addo.

Those wey dey oppose de deal feel say de role of Finance Minister, Ken Ofori Atta en bank in de deal den tins dey raise questions about de transparency of de deal and conflict of interest situation.

Also, de role of de President cousin law firm, listing of de Agyapa Royalties inside tax haven, low valuation of Agyapa Royalty den tins be some of de reasons critics dey oppose de deal.

Opposition NDC for Ghana give strong indication say dem go oppose de deal, NDC MP and Former Deputy Minister, Casiel Ato Forson talk say "we wan assure de people of Ghana that we de members of NDC Minority no go accept de Agyapa in any form."

"Dem go fit change de name, give it new colour, clothe am differently, bring am in any form, Agyapa still be Agyapa - we no go make e go through today or morrow," he add.

Govment of Ghana value de Agyapa Royalties Deal to generate between $1 billion to $2 billion dollars which govments go invest into development projects den stuff.