THE Ghana Association of Banks (GAB) said banks are holding back on financing Ghana’s small-scale mining sector over fears that their funds could end up supporting illegal mining, environmental destruction and activities that could damage their reputations.
The GAB said although financial institutions are exploring ways to channel funds into legitimate small-scale mining operations, concerns about illegal mining and weak safeguards continue to discourage lending to the sector.
A representative of the association, Mr Lawrence Sackey, said banks were prepared to support responsible small-scale miners but needed stronger regulatory controls, transparent gold trading arrangements and effective monitoring systems to protect their investments.
He was speaking at a Ghana-Malawi South-South Learning Exchange on Mining Governance and Mineral Sector Development in Accra on Tuesday, where stakeholders from the two countries examined ways of improving mining governance and developing their mineral sectors.
Mr Sackey said banks traditionally preferred lending to large-scale mining companies because of their stronger financial positions and established regulatory arrangements. Read More
BY ENOCH NTIAMOAH SIAW & NELLY QUARCOPOME
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