Ghana’s revenue from gold and other export commodities could go up substantially due to the impact of the exit of Britain from the European Union.
According to Dr Lord Mensah a senior lecturer at the University of Ghana, a senior lecturer at the University of Ghana Business School, the demand for gold will go up due to the Brexit.
According to him, investors will always prefer to invest in commodities that are relatively stable on the world market such as gold than to invest in shares in Europe after the Brexit.
“I think the demand for some commodities like gold will go up and I think that will impact our revenue from the commodity positively,” he said.
He was of the view that the development may positively affect revenues of African countries, including Ghana who rely on the proceeds of the commodity.
Dr Mensah, however stated that the Brexit may cause a reduction of inflow of pounds to Ghana due to demand and supply of the currency.
“I foresee a reduction in the inflow of pounds to Ghana. What we must understand is that the pound also has a relationship with the dollar and so we may see some changes in how the cedi reacts to these currencies,” he warned.
Executive Director of European Business Organization (Ghana), Nico van Staalduinen was however of the view that the Brexit will not affect commodity prices substantially.
He explained that Britain did not hold monopoly over world commodity prices since the prices were normally determined by the world market.
“I don’t think Britain’s exit from the EU will necessarily affect commodity prices on the world market; these prices are determined by the world market and not the UK,” stressed,
He pointing out that the UK after leaving the EU had lost its momentum such that no other European country in the EU wanted to leave.
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