China’s decision to seek investment options in Africa and Latin America will lead to the massive growth highly expected of Ghana’s mining sector this year.
The development will come on the back of the high levels of uncertainties associated with the administration of US President Donald Trump and the decision by Britain to leave the European Union (EU).
The Asian giant will be compelled to embark on this move following the uncertainties associated with American and British markets due to the less favourable investment climates.
“If indeed the issue of Brexit is to go through its logical conclusion and the direction of the United States is to go the way it is going, then China will be very keen in accessing commodities from areas like Africa, Latin America and the rest of the world other than the Unites States and elsewhere,” CEO of the Minerals Commission Dr. Toni Aubynn remarked.
“So there seems to be some bright light even in the situation of uncertainties around the world and when that happens fortunately or unfortunately it helps our key commodity which is gold,” he added.
Ghana’s Minerals Commission also maintains that gold prices will surge while more employment is created as a result of increased trade with China.
Global economist and author, Dambisa Moyo at this year’s investing in African Mining Indaba in Cape Town also asserted that the US government’s America first policy plus the likely increase of the Federal rate will affect investments into Africa and subsequently the mining sector.
But Dr. Toni Aubynn explains to Citi Business News global signals rather give credence to a significant boom in the mining sector.
“When you are in the situation of uncertainty you want to secure some stability in gold and that is where people are thinking that well there might be some higher interest in holding gold as against keeping your wealth in other ventures.”
Meanwhile Dr. Toni Aubynn has advocated the coordination of local content policies in Ghana.
According to him, a coordinated approach would benefit local businesses.
“It is good that the Minerals Commission will regulate all those things but the actual local content should not even sit with the minerals commission it should be with the ministry of trade and industry because they would know and the items produced must not be just items from the mine. If we produce cables, the cables must be enough for industries that use cables.”
“If there are certain specifications for mining then so be it you do the mining. So I think we need to relook the approach to local content , if we keep that compartment alive we will not be able to meet the demands,” Dr. Aubynn further suggested.