If you are not ready, leave it in the ground– Justice Sophia Akuffo on resource exploitation
Former Chief Justice and Fellow of the Institute of Economic Affairs (IEA), Justice Sophia Akuffo, has called on the government to urgently review all contracts related to Ghana’s natural resources to ensure the country benefits fully from their exploitation.
Speaking at a press briefing in Accra, she cited examples from other African nations, highlighting how their taxation and equity participation frameworks maximize revenue from natural resources.
“For example, in Angola, the Petroleum Income Tax is carried out under a Production Sharing Agreement and taxable income at the rate of 50 percent.
“Operations carried out under other contracts, such as consortium agreements, are subject to taxable income at a rate of 65.75 percent,” she stated.
She also referenced Eritrea’s mining policies, saying, “Similarly, Eritrea, under Article 41 of its Mining Law Proclamation, allowed the government an equity participation of not exceeding a total of 40 percent, including a participation interest of 10 percent of any mining investment.”
Justice Akuffo stressed the importance of implementing proper frameworks to regulate the exploitation of Ghana’s natural resources, emphasizing that “Over 10 trillion dollars could be realized from natural resources if there are the right frameworks… if you are not ready, leave it in the ground until there is the right expertise and capital.”
