The Ghana Chamber of Mines has urged the Bank of Ghana (BoG) to publish a detailed account of foreign exchange inflows from the mining sector. This call directly addresses claims attributed to the Gold Board alleging large-scale miners repatriate no more than 20% of their export proceeds. The Chamber warns that partial data risks misrepresenting the industry's crucial contribution to the national economy and could undermine investor confidence.
The mining sector body argues that the 20% figure captures only forex sold directly to the central bank. It significantly overlooks large sums routed through commercial banks operating in Ghana. A complete accounting that includes both central bank and commercial banking channels is essential for informed policymaking. This comprehensive data is also vital for sound macroeconomic management and to sustain investor confidence in Ghana's mining industry.
This issue fits into broader discussions about Ghana's foreign exchange reserves and exchange rate stability. The country has often faced challenges maintaining sufficient forex to support its import needs and manage the cedi's value. Accurate data from key sectors like mining, which generates substantial export earnings, is critical for the Bank of Ghana's monetary policy decisions. Misrepresenting these inflows can lead to ineffective interventions or misguided public perceptions about sector performance, impacting overall economic perception.
In a statement, the Ghana Chamber of Mines clarified that large-scale mining companies repatriate export proceeds through two main avenues. These are direct sales of foreign exchange and bullion to the central bank and transfers via commercial banks within Ghana. Ken Ashigbey, CEO of the Ghana Chamber of Mines, has previously highlighted the importance of transparent data for economic planning.
Mining firms maintain accounts with local commercial banks. A substantial portion of export proceeds returns through these accounts to cover domestic obligations. These obligations include foreign currency payments such as royalties to the government. They also cover utility payments for electricity and fuel, often invoiced in dollars but paid to local institutions. Part of this commercially repatriated forex is converted into cedis to fund local costs. This includes wages, payments to suppliers, government agencies, and community investment projects. The Chamber stated that these conversions increase domestic foreign exchange availability, supporting exchange rate stability. Members repatriate about 70% of export proceeds through a mix of central bank and commercial banking channels.
The Chamber also contested the metric behind the 20% claim. It stressed the need to differentiate between gross forex repatriation, which means total inflows into the country, and net retention after external obligations are met. Gross repatriation, consistent with balance-of-payments principles, provides the appropriate measure of the sector's actual contribution. Excluding commercial bank flows significantly understates actual foreign exchange inflows from the mining sector.
The industry body noted that the central bank previously required mining companies to offer it a 'right of first refusal' on forex intended for sale to commercial banks. This practice underscores the recognised and significant role of the commercial banking channel in forex repatriation. The Chamber asserts the Bank of Ghana should possess the data needed to present a full picture of mining sector forex inflows. It urges the regulator to publish this information to foster informed public debate. While disputing the figures, the Chamber reiterated its support for Gold Board's mandate to strengthen Ghana's mineral export revenue framework, especially in the artisanal and small-scale mining sector.