Accra: The Executive Director of the Africa Centre for Energy Policy (ACEP), Ben Boakye, has asserted that the government's decision to suspend the controversial Agyapa Royalties deal has been justified by the increase in global gold prices. He argued that the deal would have disadvantaged the country, allowing private investors to benefit at the expense of the state.
According to Ghana Web, Boakye responded to a post on X by private legal practitioner Kow Essuman on January 24, 2026, regarding the Agyapa deal. He noted that if the Agyapa deal had been implemented, private shareholders holding 49 percent would have emerged as the main beneficiaries of today's elevated gold prices, undermining Ghana's long-term fiscal interests. He highlighted that Ghana currently produces about three million ounces of gold annually from large-scale mining. At a minimum royalty rate of three percent, this production yields approximately 90,000 ounces in royalties, translating into more than US$450 million each year at current prices.
Boakye explained that under the Agyapa deal, Ghana would not have received 51 percent of total royalties. Instead, it would have received 51 percent of whatever dividends the Agyapa board chose to declare, with the remaining 49 percent of royalty flows permanently accruing to private shareholders. He criticized the inclusion of non-producing concessions and future mines in the deal, noting that investors would have secured nearly half of royalties from undeveloped projects in exchange for a one-off payment of about US$500 million.
He further argued that even under optimistic valuations, Ghana's returns would have been limited by operating costs, reinvestment decisions, and management expenses, making the model inferior to directly receiving full royalty revenues. Boakye emphasized basic arithmetic, stating that using 2025 large-scale output of about three million ounces at a minimum royalty rate of three percent, Ghana earns roughly 90,000 ounces. At current prices, this translates into more than US$450 million in annual royalty revenue.
Boakye dismissed claims that opposition to Agyapa was ideological, stating that halting the deal protected Ghana's fiscal future. He stressed the fundamental difference between sovereign royalties and private royalty streaming companies, warning that listing state royalties would have compromised Ghana's control over its mineral resources. He pointed out that the key correction occurred when Ato Forson restored royalties fully into the budget, supporting socioeconomic investment, and emphasized that the funds already existed for projects like the Accra-Kumasi expressway.