HomeNewsInternationalKwaku Addai Tardieh writes :"BRING BACK THE BRILLIANT AGYAPA ARRANGEMENT, DO SAME...


The Royalties from Gold yield about 200 Million Dollars a year, and so do the proceeds from the Road Fund. AGYAPA:

1. Ghana receives on the average 200 million Dollars a year from Royalties only ( note, other income like taxes etc are not included) from gold mined from 12 big mines and 4 non-producing mines.

2. The Royalties are received by a Ghana Government company (100% owned by Ghana) called The Minerals Income Investment Fund (MIIF).

As the name implies, they take income from Minerals like gold and INVEST into areas and sectors in Ghana.

3. MIIF has decided to use to use Royalties from Gold to form a Gold Royalties Company called AGYAPA. Of course Agyapa is 100% owned by MIIF, which is also 100% owned by Govt of Ghana or Ghanaians.

Please forget the ignorance and propaganda that Agyapa belongs to some individuals. Agyapa is like Cocoa Marketing Board, which belongs to Cocobod, which belongs to Ghana Govt.

4. Govt (MIIF) has decided to form Agyapa and leverage on the receivables from Gold Royalties. Note that royalties are a PERCENTAGE of income or production, meaning the amounts can increase or decrease.

Also if a mine goes down or doesn’t produce, no royalties come from them. Eg is Anglogold which for years was not producing and thus NOT PAYING ANY ROYALTIES. What does this tell us? That Royalties are NOT ASSURED because anything can happen.

5. With Agyapa formed, Govt is to sell 49% of the shares of the company TO THE PUBLIC. Just like many people have bought MTN and other shares, everyone can buy Agyapa shares, whether institutional investors like private funds, or ordinary human beings like myself and you. Agyapa is NOT going to be sold to any secret society or selected individuals only.

Government Plan On Listing Agyapa Company On Stock Exchange

It is to be listed on the London and Ghanaian Exchanges and the public could buy Agyapa shares from these bourses. Govt or Ghanaians would still be the majority shareholder of Agyapa with 51% shareholding.

One lovely part of the plan is to use a large portion of the monies realised to start a RAPID development of mining areas, which have seen very little development and/or benefits from mining that has gone on in their areas.

Some will also be used for equity investment in mines etc around the world to boost the value of the company.BENEFITS.

Ghana plans to IMMEDIATELY earn from the sale of the minority shares of Agyapa, what it would have to wait for more than 5 years to receive from royalties, which is even not assured because of the reasons given in Point 4.

Also with the right interest whipped and good marketing, the offer price could increase due to over subscription of the Initial Purchase Offer or IPO.

1000s of millions of Dollars, or even billions can be raised, which could be more than we could have ever hoped to get from the same source after waiting for say 15 or 20 yearsAgain, unlike borrowing against the projected income like we did with the Road Fund, Agyapa will give us “free money” which we do not have to pay back let alone pay interest on.

Why Agyapa Deal Over Loan?

We borrowed about 1 billon on the back of the road fund and for years we could not have the benefit of our tolls etc to repair our roads because the fund was encumbered THE ROAD FUND.

The road fund earns about $200 Million a year, coincidentally just about the same amount earned from Gold Royalties.

Its mandate include upgrading and rehabilitation for roads etc plus other projects determined by the Governing Board. In 2015 the Govt of Ghana borrowed over 1 Billion Cedis from UBA using the road fund receivables as draw down collateral and we had to halt all road fund projects for years to pay back TAKING THE ROAD FUND THE AGYAPA WAY.

So imagine the receivables into the road fund are diverted into a new Govt Company called “EKWAN PA” like how a chunk of Gold Royalties make up AgyaPa.

Ekwan Pa then lists on the bourses with minority shares for sale so that the company (Govt) continues being majority shareholder as in Agyapa and raises say 800 Million USD.

Again as explained earlier, these monies are NOT LOANS which are supposed to be paid back, plus interest. We could use the $800 Million to construct the Kumasi-Accra dual carriage or a portion of it and toll it.

This road will generate profits for Ekwanpa, a company in which Ghana Govt would own the majority shares with people like you and I also owning shares we have bought on the stock exchange EkwanPa could also be given the contract to handle all road and boat tolls.

They could mechanize it and make profit from it and send the remainder to central Govt or any which arrangement may be best.

EkwanPa could invest directly or even borrow or use Equity mainly from Govt Institutions like SSNIT etc to build more tolled dual carriage highways for profit EkwanPa can be the company to receive the proposed Road Tow Levy to move broken down trucks and other vehicles on our roads ( I still insist though that owners of trucks and vehicles should be billed instead of letting everyone pay) That profit goes to Ekwan Pa, thus Govt, thus Ghanaians.

You can imagine the number of things and projects concerning our roads that such an entity as Ekwan Pa undertake using the brilliant Agyapa Model.


Agyapa is a great idea. The optics were not the best from the beginning. Looking at your political terrain and especially so close to elections as it was, Databank and certain individuals close to Govt should NOT have been involved in any of its processes, not because they are not the best, but for the OPTICS.

Agyapa suffered damage mainly because of these issues. Education was poor and as gullible and as ignorant as we are, many STRANGELY and ridiculously believed that Agyapa belongs to some individuals in Govt, etc or Govt was selling our gold royalties to a few people. Also valuation concerns have been raised and corporate Governance issues too. The Govt rightly asked for a withdrawal and subsequent changes have been made.

This time there should be massive education to quell the propaganda and lies. Should we continue waiting for our receivables in tots every single year and doing very little with them or borrow against them at high interest rates as was done with the Road Fund?

Or we should leverage on them the Agyapa way so we can raise 5 or 10 or more times their yearly income whilst at the same time owing no one and not needing to pay any interests? Should we do an Agyapa with The Road Fund, so we can do far more quickly, to bridge our infrastructural gap, whilst at the same time not increasing our debt burden?

The answer to any objective person is obviousI hope Agyapa is implemented as soon as possible and replicated in all spheres where possible to optimize all receivables to develop this nation rapidly whilst REDUCING OUR DEBT BURDEN”

Source|osimpamfm.com|Richard Owusu Tawiah

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