Stanbic Bank Ghana, as part of its ongoing efforts to drive economic growth in the country, has invested USD1.1 billion in Ghana’s mining, metals and energy sectors over the past five years. This was made known during a presentation Lorraine Mac-Pods, Senior Vice President, Mining and Metals, Stanbic Bank at the West African Mining Power Conference and Exhibition (WAMPOC/WAMPEX) in Accra.
Recounting some of the bank’s interventions in the country’s mining and power
sector, Ms. Mac-Pods said, “Over the past five years, Stanbic Bank has advanced
USD800 million to the Ghanaian mining and metals sectors. Eleven of the 13
large-scale mines in the country utilize our transactional banking services and
have acted as the sole arranger and lender for a USD100m million term loan
facility to a local surface mining contractor, aiding in executing their
contract.”
She added that “We have also provided USD100 million in loans to small local
contractors and vendors of mining companies in 2024. Additionally, we arranged
a USD90 million term loan and hedging solution to a gold mining company for
their expansion drive and an USD80 million environmental bond guarantee for six
gold mines over the past five years.”
Ms. Mac-Pods also mentioned some interventions the bank has made in the power
sector that are having positive impacts in the economy. She said, “Within the
power sector, we acted as the lead bank in a USD325 million syndicated term
loan facility for a local independent power producer to set up a power plant
within a mine, resulting in significant power cost savings for the mining
company…We were also the joint mandated lead arrangers for the state’s power
producer, providing a USD120 million syndicated term loan facility.”
Lorraine Mac-Pods further urged government to put measures in place to ensure
that both the country and citizens enjoy the benefits of the country’s mineral
resources. She noted that, “…for the mining and power sectors to truly thrive
and attract sustainable investments, the role of the government is crucial.
Firstly, the government could facilitate the creation of a stable regulatory
framework. A predictable regulatory environment helps reduce uncertainty and
risk for investors, making the sector more attractive for investment.”
“Engaging financial institutions in the drafting of regulations ensures that
these policies are practical and conducive to business operations. Resource
nationalism, while aiming to increase local benefits from natural resources,
can sometimes deter investment if not managed carefully. It is important for
the government to strike a balance between maximizing local benefits and
maintaining an attractive investment climate. A stable regulatory environment,
transparent processes, and fair competition will foster investor confidence and
encourage long-term investments,” Ms. Mac-Pods added.
The WAMPOC/WAMPEX is a sub-regional platform that brings together key
stakeholders in West Africa’s mining and power sectors to deliberate on issues
critical to the development of the sectors. The event showcases and features
the latest innovations and solutions for the mining sector and is the most
important meeting place for senior mining and power professionals, government
representatives and stakeholders, allowing them to keep abreast of the latest
industry developments, discuss key challenges and understand future
opportunities.
Source: Peacefmonline.com