Ghana Sets Year-End Target for $750 Million Mining Funds IPO
Ghana Sets Year-End Target for $750 Million Mining Funds IPO
Ghana’s plan to raise $750 million through a sale of shares in a company that will be funded with revenues from mining concessions could take place this year.
Finance Minister Ken Ofori-Atta first mooted the proposal in November 2018 when he said the company will be supported with mineral royalties that Ghana derives from mining agreements. Ghana is Africa’s biggest gold producer and hosts assets operated by companies such as AngloGold Ashanti Ltd. and Newmont Goldcorp Corp. It also mines bauxite, diamonds and manganese.
“We’ve gone a long way now with the team and the type of structure that we want,” Ofori-Atta said in an interview Wednesday in the capital, Accra. “I hope we can do it this year. It’s a bit tight but it’s possible.”
Ofori-Atta will elaborate further on the plans when he presents Ghana’s 2020 budget next month, he said. In last year’s initial outline of the plan, Ofori-Atta said Ghana will set up a special purpose vehicle and conduct an initial public offering through a dual-listing on the London Stock Exchange and the local bourse.
President Nana Akufo-Addo’s government is under pressure to find ways for funding infrastructure plans and social projects ahead of polls slated for December 2020 in one of Africa’s most competitive democracies.
--With assistance from Elena Mazneva.
To contact the reporter on this story: Ekow Dontoh in Accra at edontoh@bloomberg.net
To contact the editors responsible for this story: Andre Janse van Vuuren at ajansevanvuu@bloomberg.net, Liezel Hill
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