Exploration fund to serve as financial catalyst -Steven Ackah

By Juliet Aguiar DUGBARTEY

Dr. Steven Blessing Ackah, Executive Director of Ghana Gold Expo, has called for the establishment of exploration fund in Africa, particularly Ghana, to serve as a financial catalyst, enabling local individuals and entities to actively participate in exploration activities.

He said the Exploration Fund should be accompanied by a strong commitment from the government to create a conducive regulatory environment. Clear policies, transparent licensing processes and stringent environmental safeguards are essential components to attract both local and international investors to participate in exploration activities.

“By investing in exploration, Ghanaians can become stakeholders in the early stages of mining projects, thereby gaining a direct share in the subsequent economic benefits,” he said.

Dr. Ackah was speaking at the Monaco International Investment Forum on the theme ‘Unlocking Africa’s Mineral Wealth and Alternative Financing for exploration’.

He explained that the Exploration Fund would empower local participation; thus, empowering Ghanaians to invest in and own shares of exploration ventures, fostering a sense of ownership and ensuring that the economic benefits of mining are more widely distributed within the local community.

Also, he said there would be technology and skills transfer. Collaborating with international exploration firms through the fund can facilitate the transfer of cutting-edge mining technologies and skills. “This not only enhances local expertise, but also positions Ghana as a hub for innovation in the mining sector.”

“Exploration inherently involves risks, both financial and operational. An Exploration fund, carefully managed and strategically invested, can help mitigate these risks, ensuring a more stable and sustainable development of mining projects” he said.

Dr. Ackah pointed out that Ghana’s mineral wealth is often concentrated in the hands of a few multinational corporations. An Exploration Fund would help redistribute this wealth more equitably, ensuring that the benefits of resource exploitation reach a broader segment of the population. This, in turn, could mitigate social inequalities and contribute to poverty reduction.

According to him, “this fund would serve as a financial catalyst, enabling local individuals and entities to actively participate in exploration activities. By investing in exploration, Ghanaians can become stakeholders in the early stages of mining projects, thereby gaining a direct share in the subsequent economic benefits”.

Challenge

He mentioned that financial constraints is a challenge in exploration. “Exploration is a capital-intensive endeavour, and many local businesses face challenges in securing sufficient funding. An Exploration Fund would alleviate financial constraints, enabling entrepreneurs to undertake geological surveys and prospecting activities crucial for discovering new mineral deposits.

“Keeping up with advancements in exploration technology is essential for successful prospecting. The fund could be utilised to bridge technological gaps by providing training programmes and access to modern exploration tools, ensuring that Ghana remains competitive in the global mining landscape and that exploration activities must adhere to environmental and social standards.

The fund could support initiatives promoting responsible mining practices, ensuring that exploration endeavours prioritise environmental conservation and respect local communities, fostering sustainable development,” Dr. Ackah added.

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