The Minerals Revenue Funding Fund (MIIF) Ghana has emerged as one of many nation’s most worthwhile and impactful state-owned enterprises in recent times, demonstrating how strategic commodity buying and selling can drive nationwide financial development. Beneath the management of Edward Nana Yaw Koranteng, MIIF recorded over 100% revenue development in 2023, expanded its property beneath administration (AUM) from USD $180 million in 2021 to just about USD $1 billion by 2024, and performed an important position in strengthening Ghana’s place within the international gold market.
The Imaginative and prescient Behind the MIIF Gold Commerce Desk
MIIF’s funding coverage permits the Fund to commerce in treasured minerals as a part of a diversified various funding technique. The MIIF Gold Commerce Desk was designed to combine Ghana’s gold worth chain extra successfully, with targets that embrace:
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Establishing a proposed gold-backed Change Traded Fund (ETF).
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Supporting the stabilization of the cedi by gold-for-forex initiatives.
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Constructing Ghana’s gold reserves.
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Producing robust returns for the Fund.
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Formalizing the small-scale mining sector.
A Income Engine for the Economic system
Between October 2023 and September 2024, MIIF’s gold buying and selling actions primarily by a revolving commerce facility price USD $30 million in native foreign money generated an estimated USD $1.02 billion in income. This was achieved by partnerships with licensed aggregators who sourced gold from licensed small-scale miners, which was then refined by London Bullion Market Affiliation (LBMA)-accredited amenities.
Two Distinct Buying and selling Fashions
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Gold for Foreign exchange
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MIIF deployed its USD $30 million capital in three tranches, every producing a mean of USD $60 million per thirty days over eleven months.
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This system offered much-needed international trade liquidity, whereas guaranteeing MIIF earned aggressive returns.
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Banks, together with Constancy Financial institution, later joined with their very own capital, leading to extra inflows of USD $156 million inside just a few months.
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Gold for Oil
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In partnership with oil bulk distribution firms (BDCs) by way of the Chamber of Bulk Oil Distributors (CBOD), MIIF’s Commerce Desk facilitated foreign exchange inflows of round USD $650 million.
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This association helped stabilize gas costs and supported cedi stability with out requiring MIIF to commit its personal capital.
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Managing Commodity Buying and selling Dangers
Whereas international trade variances are frequent in commodity markets, MIIF carried out monitoring and danger administration measures to handle these challenges. Regardless of momentary foreign exchange mismatches in 2024, a good portion of the variances was resolved by commerce receipts and operational changes.
Wanting Forward: Ghana’s Gold Board Alternative
MIIF’s commerce construction has confirmed able to turning modest capital outlays into substantial international trade inflows over USD $600 million from simply USD $30 million deployed. With projections indicating USD $3 billion in foreign exchange inflows over the following two years, the Fund’s technique provides a mannequin for Ghana’s proposed Gold Board and different treasured mineral commerce initiatives.
By combining progressive funding approaches, small-scale mining formalization, and international market integration, the MIIF Gold Commerce Program pioneered beneath Edward Nana Yaw Koranteng stands as a blueprint for sustainable resource-backed financial development in Ghana.
