Stanbic Bank Invests USD 11 Billion In Ghanas Mining Metals And Energy Sectors

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 use 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 organization 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 organizationhellip;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, “hellip;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 decrease 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 significant 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 crucial to the development of the sectors. The event showcases and features the latest innovations and solutions for the mining sector and is the most significant meeting place for senior mining and power professionals, government representatives and stakeholders, allowing them to keep abreast of the latest industry developments, discuss key obstacles and understand future opportunities.