MIIF develops gold-backed Exchange Traded Fund

THE Minerals Income and Investment Fund (MIIF) is actively developing a physical gold-backed Exchange Traded Fund (ETF) as part of measures to optimise returns on the country’s mineral resources, promote economic growth and attract foreign investment.

When completed, the fund would be listed on the Ghana Stock Exchange (GSE).

Under the initiative, the MIIF will source, buy and store refined gold which will then be sold in units to both institutional and retail investors.

The Chief Executive Officer (CEO) of MIIF, Edward Nana Yaw Koranteng, who made this known at the opening of a stakeholder conference in Accra  stated that the listed investment would track the price in United States Dollars (USD).

"The MIIF ETF would be structured with gold as a principal underlying asset for which the security will track the price of gold.”

"It would be the second gold-backed ETF listed on the Ghana Stock Exchange, after that of South Africa," he said.

He explained that MIIF was planning to list in November 2024 but unfortunately, due to circumstances beyond its control, the listing would be done in the first quarter of 2025.

The conference

The conference organised by MIIF is on the theme: "Minerals value addition and value chain development- Essential tools for Ghana's development".

This conference created a platform to explore the pivotal role of minerals value addition and value chain development in driving Ghana's sustainable economic growth.

With the conference, MIIF sought to foster deeper conversations and practical evidence-based actions that could be used to help Ghana transition from raw mineral exports to processing and manufacturing. The goal is to chart an inclusionary path towards maximising Ghana's mineral wealth for long-term development and improved 
livelihoods.

Speakers and panellists were the Chief Executive Officer of MIIF, Edward Nana Yaw Koranteng; Deputy Minister of Lands and Natural Resources, Mireku Duker; Senior 
Partner at AB & David (Africa), David Ofosu-Dorte; Senior Programme Officer at Natural Resources Governance Institute, Denis Gyeyir; Co-Chair of Ghana Extractive Industries Transparency Initiative (GHEITI), Dr Steve Manteaw, among others.

Other participants were selected from the Minerals Commission, Environmental Protection Agency, Ghana Standards Authority, Ghana Revenue Authority, Economic and Organised Crime Office, State Interest and Governance Authority, Chamber of Mines and civil society organisations.

Primary objective

The MIIF CEO said the primary objective of the forum was to have a conversation where stakeholders could include their extensive experience into the programmes of MIIF to further engage on how the potential of the fund could be stretched further and leverage for the benefit of Ghanaians

He said that could be done towards the objective of making mining the first pillar of the economy, and also, most importantly, to make MIF an important stakeholder towards the country's overall development.

"This stakeholder forum also provides the avenue to answer all questions around the front and to advance the inclusionary path going forward towards creating Africa's largest minerals sovereign wealth fund," he said.

Sovereign wealth fund

The deputy minister stated that the MIIF was established to function as a sovereign mineral wealth fund to promote mining investment and serve as a partner of choice for investors who want to invest in mining.

In addition to value addition, he said the government was actively assuming diversification of the mineral resource base as part of optimising all possible mineral value chains.

He said notably the Ghana Geological Survey Authority has been supported in exploring all possible minerals, especially the development-oriented industrial minerals, which were more amenable to being linked with other sectors to catalyse the country's development agenda.

He urged MIIF to consider embracing value-addition avenues in the current mining space and provide the necessary support for economically viable options.

Create demand

For his part, Mr Ofosu-Dorte said there was a need to create a deliberate myth that could help market the country’s gold to the rest of the world.

“Gold from the centre of the world should be different from other parts of the world.”

“A deliberate myth on gold can help create demand,” he added.