The IPO was initially planned for January 2020. However, the government postponed it so that the rules and processes that bind the mineral royalty payments is reviewed.
Speaking to Bloomberg TV after the issuance of the US$3 billion Eurobond on Tuesday (February 4, 2020) the Finance Minister said the US$750 million IPO of the mining investment fund will now go on sale next month.
“We have made considerable progress and we would have more meetings before I leave. We are confident and we are targeting March for the IPO that is US$750 million which will further go to strengthen our foreign exchange reserves.”
“This will also diversify our economy into a more modern economy and take advantage of our branding as the largest gold exporter on the continent at this point,” Mr Ofori-Atta added.
An Act of Parliament which was passed in December 2018, established the Ghana Minerals Investment Income Fund (MIIF). It is to receive royalties and pay dividends from these inflows.
The MIIF Act seeks to use the Minerals Development Fund (MDF) as a special department to raise funding for development in health, education, economic and other sectors.
Previously, Ghana’s mineral royalties went into the consolidated fund, where 80% was retained and 20% was disbursed to the MDF.
The new law, however, allows the whole of mineral royalties to be lodged in the MIIF, where part of it will be disbursed into the consolidated fund and other statutory funds stipulated under the law.
