A Legal & Fiscal Analysis of the Agyapa Investment Model

In 2018, the Parliament of Ghana passed the Minerals Income Investment Fund (MIIF) Act to allow the fund to invest part of the country’s mineral income in a Special Purpose Vehicle (SPV) in line with meeting the Act’s objective of monetising Ghana’s income from its mineral wealth. As part of the implementation of the Act, Government of Ghana (GoG) decided to engage in a gold royalty monetisation transaction by selling part of the future royalty flows on the London Stock Exchange and later on the Ghana Stock Exchange. This led to the incorporation of Agyapa Royalties Limited (Agyapa), an SPV, as a first step to achieving the object of the MIIF Act.

The Government seeks to raise about $500 million from the sale of 49 per cent of Agyapa’s shares. Consequently, GoG has capitalised Agyapa with royalties from 48 mineral producing and prospecting leases, constituting about 95 per cent of government income from mineral royalties. Parliament of Ghana approved the assignment of rights to royalties from the leases to Agyapa at a value of $1 billion.

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The Africa Centre for Energy Policy (ACEP) was established in 2010 to contribute to development of alternative and innovative policy interventions through high-quality research, analysis and advocacy in the energy and extractives sector in Africa.

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