Monday, April 4, 2016

Gov’t plans adding value to commodities



Government is ready to diversify the economy by adding value to the country’s major export commodities, like raw gold, before export. 

Delivering the State of the Nation address in parliament, President John Mahama explained that the continuous drop of the country’s major export commodities is an indication that the economy cannot rely on exporting raw materials of major produce. 

“The expectation is that the growing number of licenced gold buyers who have traditionally purchased raw materials in Ghana and exported them to other countries will seek to refine that gold in Ghana, creating jobs and increasing revenue,” he said. 

In 2015 government had a high budget deficit of 11.5% of Gross Domestic Product (GDP), as well as a current account deficit of 11.7%, which were all attributed to the fall in commodity prices, budget overruns and shortfalls in corporate income tax.

President Mahama announced that government is funding the manufacturing sub-sector to increase revenue from exported commodities, particularly gold. 

He cited the new US$7million gold refinery, the Sahara Gold Refinery, commissioned at Adjiringano that has the capacity to refine between 200 and 300 kilos of gold daily to meet a substantial demand of the industry. 

He added that assistance to the KNUST Jewellery School is also aimed at training core craftsmen to kick-start a jewellery industry in gold mining communities.

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