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BusinessStrategic investment needed for Ghana's lithium industry - Theo Acheampong

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Strategic investment needed for Ghana’s lithium industry – Theo Acheampong

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Economist Dr. Theo Acheampong has underscored the need for Ghanaians to recognize the competitive global investment landscape, particularly in light of the recently signed lithium agreement.

While recognizing that there is room for improvement in certain fiscal terms, Dr. Acheampong underscores the necessity to understand the global investment context, whether local or foreign.

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In a detailed analysis on his platform, Dr. Acheampong asserts that any project with a combined fiscal take exceeding 50% effectively nationalizes that industry.

He urged a nuanced perspective, advocating a primary focus on establishing a lithium refinery within Ghana to enhance value.

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This, he contends, falls within the realms of industrial and trade policies, presenting a strategic opportunity for the nation.

Drawing attention to Ghana’s lithium agreement with Atlantic Lithium for the Ewoyaa discovery, Dr. Acheampong positions it as an improvement over other mining sector leases inked during the Fourth Republic.

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Despite acknowledging the need for vigilance and improvements, he insists that serious investment in the sector is essential if Ghanaians want to enjoy the benefits.

Simultaneously, Minister for Lands and Natural Resources, Samuel Abu Jinapor, continues to ardently defend the Ghana-Barari DV lithium agreement.

Speaking at a forum organized by Civil Society Organizations, Jinapor meticulously discloses key details about the deal to dispel false narratives, debunk myths, and address political controversies stemming from the agreement.

Jinapor emphasizes that, in the history of the country, no government has signed a more profitable deal that prioritizes the interests of Ghanaians.

He walks through the various clauses within the agreement, asserting that they signify a departure from historically exploitative colonial approaches to Ghana’s mineral resources.

Notably, these clauses align with the government’s strategic direction, emphasizing value addition in utilizing the nation’s mineral wealth.

Key components highlighted by Jinapor include the listing of Bavari DV on the Ghana Stock Exchange, enabling potential Ghanaian investment through share purchasing.

The agreement mandates a minimum of 30% Ghanaian participation, and additional value addition clauses ensure that Ghanaian interests dominate the exploitation of the lithium ore.

The Minister rebuts accusations of secrecy surrounding the deal, asserting that transparency has been a hallmark of this agreement.

The signing ceremony, attended by active media presence, serves as an indication of the government’s commitment to transparency and accountability.

While welcoming constructive criticism and feedback from the public, Jinapor urges critics to propose alternative and improved deals rather than outrightly dismissing the one signed by his ministry.

He reassured Ghanaians that the government will persist in pursuing strategies, policies, and commitments that safeguard the best interests of the country.

The Ministry of Lands and Natural Resources, in October, inked the first-ever Lithium Lease Agreement with Lithium Atlantic, an Australian mining firm, for mining the mineral at Ewoyaa in the Central Region.

In a separate appearance on Joy FM, Jinapor addresses concerns about the rushed nature of the deal, emphasizing that the government did not hastily sign the Atlantic Lithium agreement.

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