Could you tell us what are the modalities of the land reform, which is to be implemented?
We believe that land is the final park in which every economic activity is played out. Land acquisition in Ghana is bedeviled with a lot of problems. We have several tenure systems due to our history and culture. We have always believed that a community in trust must hold land for the people. But we also believe that we are a modern state and as we develop we must evolve laws and policies that will take into account the interest of modern day business, especially with regards to foreigners. We are trying to marry the two ideas and this has brought into focus the need to reform the land sector as far as the laws and policies are concerned. Currently there is a body in the land commission with a committee that is working on a report. I am informed that very soon the report will be ready. The main focus of the land policy will be to increase access to land to all investors and enhance security of tenure. We also want to look at the possibility of landowners using part of their land as equity for any business that is going to be set up. We want to increase the efficiency of land use. We realize that some lands have been acquired but are not being used for the purposes for which they are really suited. We have drawn a program whereas there is a mechanism by which we ensure that land is used efficiently
Are you working hand in hand with the Minister of Agriculture?
Yes, there is a broad inter-sectorial collaboration. I am aware that we have drawn up a map showing the various ecological zones, what they can be used for in terms of cropping etc.
In the forestry area, what measures have you taken to add value to the timber operations?
There is a lot of inefficiency in the Timber Industry of Ghana and a vicious cycle has been set up. A lot of industries are going up as far as the export of raw, sawn timber is concerned, but this is no real value addition. The Ministry has therefore set up a policy to help investors who want to move to the tertiary level with incentives. Ghana has been one of the pioneers in wood industry but we have not gone downstream because certain policies were wrong. As I speak now, there is a lot of incentives for industrialists who export raw lumber, that is air and kiln dried so we are trying to review policies. There is also a lot of illegal activity going on, because a lot of people go around the law in order to supply these saw mills in order to earn foreign exchange, meanwhile the domestic market is not being supplied with products from the market. Another form of illegality is what we call chain-sawn timber, and that is an inefficient way of harvesting the timber. By the time this sort of timber gets to the tertiary level, about 70% of it, would have been wasted from the forest floor to the one who is going to add value to it. Even government revenue is being lost. There are also a lot of species that are not being promoted, as it should be done. We have a lot of rubber that could be exported but it is not being promoted.
One of my objectives is to strengthen the Ghana Timber Export Development Division, which has an office in London so that they can look for the market to sell our tertiary products. One of the flagships in this sector is Scanstyle, which is doing very well.
Could you tell us more about the Timber Utilization Contract, and what your expectations are?
Timber Utilization Contract is nothing more than an attempt to use market-based mechanisms to solve some of the problems in the industry. We believe that any distortion in the markets creates an incentive for illegality; so, it is a process whereby the concessions that are available are apportioned in such a way that there is an in-built mechanism for competitive bidding. This breeds transparency and corruption will be eliminated. Our job will be monitoring and evaluation. We are working seriously towards certification. We recognize that it is the in thing in the industry. A time will come when consumers will need certification that the wood products are coming from sustainable managed forests. A pilot project has been done about log tracking.
What is the contribution of the timber industry to Ghana's GDP?
It varies. The latest figure from the year 2000 is about 9.2% of the GDP. | Do you have any expectations?
Certainly, it can go higher. If we are to do value addition, we will earn as much as $1 billion instead of the current $ 185 - 200 million per year.
How do you efficiently supervise the mining industry?
We recognize that unlike forestry, minerals are not sustainable so we want to maximize the income from mining. Then we want to invest the revenue that will accrue from mining in the other sectors of the economy so that in the long term when all the minerals have been exhausted then we will use these as a base for development. We also recognize that there are serious environmental concerns as far as mining is concerned. We are addressing these problems. A lot of studies have been done, and we are aware that land reclamation programs have been made to work in areas like South Africa and Australia and we are taking a cue from them. We want to transpose some of the results in this country.
We have also put in place several mechanisms. Some of them are legislative, and you are supposed to fulfill certain obligations. We have a policy mechanism; we have instruments whereby the government can seek relief. But more important, we have this concept of bonding. Environmental Protection Agency sets out all these. Then even before you start digging, you do an environmental impact assessment before permits are granted. Then we have environmental management plans where you bring your plan and you are bonded with guarantees.
How do you work with the companies involved in your sector to make things smooth for both parties?
We make the giving of mining license as smooth as possible. When you come in we send you to the Minerals Commission, and within these policy guidelines everything is done there. Then before you even start, if there is any help you need the Ministry will see to it. In the area of gold, we realize that the prices keep changing and the countries in the sub-region are giving incentives; therefore, we are planning to hold a seminar with all stakeholders to see how we can update our laws and also address certain issues like environmental concerns. We are ready to listen to those on the field and to address their concerns. We are also thinking about physical incentives and capital allowances.
Could you name some of the investors interested in mining?
We have had some South Africans, Canadians, a lot of Australians, a couple of Americans.
Where do you foresee further investment opportunities?
We have large deposits of bauxite, and we want to promote investment in that area. We also have manganese at Nsuta; we have interests in large deposits of salt along the coast from Senegal right down to here. We have the capacity to generate about a million tons. Nigeria is an attractive market next door. There are several attractive points between here and Elmina. It is a unique phenomenon because of the coastline. It increases the salinity. We are very keen to attract investment into the salt industry because the salt can be used for several industrial purposes.
What type of investment are you looking for?
We are looking for the best ways of exploiting all these minerals and natural resources; so we look at every proposal be it joint, completely foreign owned or any form. What the government does not want to do is to go by itself into acquisition.
What final message would you like to relay to the international business community?
Ghana is ready. There is a new government in place. This government has always believed in capitalism as a vehicle for development. We are inviting people to come in for business. We are willing to put in more physical incentives for mining companies. The terrain has changed, and so have we. It is possible to remove taxes and royalties to make the companies more competitive. That is the extent to which we can even go. |
V.I.P. INTERVIEWS 
