Gold For Oil: Gov’t Must Give More Support To Akonta Mining Than Foreign Mining Companies- Financial Expert

Gold For Oil: Gov’t Must Give More Support To Akonta Mining Than Foreign Mining Companies- Financial Expert

A Finance and management expert is calling on the government of Ghana to support the operations of Akonta Mining Limited if it aims to solidify its initiative to purchase oil products with gold rather the US dollars.

Mr. Ishaq Kyei-Brobbey stated on Wontumi TV on Tuesday that government must emulate the culture of other countries where they set an agenda to support their own business folks over foreign nationals or companies.

He therefore called for massive support for Akonta Mining Limited- a wholly Ghanaian owned mining company that is into large scale mining and owned by Mr. Bernard Antwi-Boasiako popularly known as Chairman Wontumi.

“Government should support Chairman Wontumi; in other countries they identify people in business, shape them to impact the economy… He (Wontumi) is a bold business man and that is why he has risen to the height he has attained today”, Ishaq Kyei-Brobbey said.

The Ghanaian government last Thursday announced its plans to buy oil products with gold rather than the United States’ dollar reserves.

Ghanaian Vice President, Mahamudu Bawumia, said that the move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs.

The decision, if implemented as planned for the first quarter of 2023, “will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency,” Mr Bawumia said.

He added that using gold would prevent the exchange rate from directly impacting fuel or utility prices as domestic sellers would no longer need foreign exchange to import oil products.

Adding to the above, the financial expert noted that instead of supporting foreign mining companies like AngloGold and Newmont, the government of Ghana should give more support to Akonta Mining because it has the capacity to supply the nation with the same amount of gold others can give.

He further stated that Akonta Mining Limited would also focus on selling to the Government of Ghana rather than exporting its commodity.

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