The Minerals Income and Investment Fund (MIIF) is currently in the process of launching a gold-backed exchange-traded fund (ETF), which is expected to be listed by the fourth quarter of 2024, as confirmed by MIIF’s Chief Executive Officer, Edward Nana Yaw Koranteng.
“The ETFs will be backed by physical gold bullion held in secure vaults. Investors in these ETFs will own shares that represent a portion of the underlying gold held by the Fund,” Mr. Koranteng said.
According to him, the ETF offers investors a convenient way to track gold price movements without the need for physical gold ownership.
“This ETF will provide investors with exposure to the price movements of gold without needing to physically buy, store and secure the metal themselves,” Mr. Koranteng added.
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The gold used for the ETF will be sourced from MIIF’s Small-Scale Gold Mining Incubation Programme, which prioritizes environmentally friendly mining methods and transparent tracking systems to obtain gold dore from licensed small-scale gold mining firms.
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According to him, sustainably mined gold must meet certain standards, including environmental sustainability, social accountability, regulatory compliance, and transparent practices.
“These criteria are not exhaustive, and the specific criteria used by MIIF may vary,” he said.
The listing of the MIIF gold-backed ETF on the Ghana Stock Exchange (GSE) is anticipated to occur before the end of 2024, representing a substantial milestone for Ghana’s gold sector. Upon completion, this will be the second gold-backed ETF listed on the GSE.
Mr. Koranteng noted that the listing timeline on the GSE is tentative and may be adjusted based on several factors, including regulatory approvals, market dynamics, and logistical arrangements.
“MIIF has appointed transaction advisors to oversee and execute the listing process. These advisors are responsible for structuring the ETF, conducting due diligence, preparing regulatory filings and coordinating with regulatory authorities and market participants,” he said.
He added that the ETF listing process may be delayed by regulatory hurdles challenges.
“Regarding potential challenges, regulatory approval processes can sometimes be time-consuming and MIIF may need to address any regulatory concerns or requirements raised by the SEC and the GSE,” he said.
According to him, the listing process may face logistical challenges related to market infrastructure, trading systems, and investor preparedness, which need to be overcome to guarantee a successful listing.
“The overall, careful planning, regulatory compliance and effective execution are essential to navigate potential challenges and ensure a successful listing hopefully by October 2024,” he said.
The CEO of MIIF stated that the organization is prepared to co-invest with investors seeking opportunities in Ghana’s minerals sub-sector, in line with MIIF’s strategic goal to establish Ghana as Africa’s mining hub and maximize local value addition.
