Lecture On Business in Africa

Institute of African Studies,
University of Ghana - Legon
2010 AngloGold Ashanti Lecture

on Business in Africa
Institute of African Studies

University of Ghana Tony Oteng-Gyasi
Legon
Telephone: 0302-513390/1
Financiers of Political Change in
Fax: 0302-500512 Ghana: Heroes and Villains?
Email: iasgen@ug.edu.gh
Website: http://ias.ug.edu.gh
Institute of African Studies

Institute of African Studies, University of Ghana - Legon
2010 AngloGold Ashanti Lecture on Business in Africa
Tony Oteng-Gyasi
Financiers of Political Change in Ghana: Heroes and Villains?
March 29, 2011
Kwabena Nketia Conference Hall, Institute of African Studies,

University of Ghana, Legon
The lecture was Chaired by the Ag. Pro-Vice-Chancellor (ORID),

Prof. Yaa Ntiamoa-Baidu
The AngloGold Ashanti Lectures on Business in Africa are a

collaboration between the Institute of African Studies, University of
Ghana, and AngloGold Ashanti. Instituted in 2008, they highlight
issues related to business in Africa as broadly defined. AngloGold
Ashanti also support the Kwame Nkrumah Chair in African Studies.
Published by the Institute of African Studies, University of Ghana, P. O. Box LG73, Legon, Accra - Ghana
© Institute of African Studies, University of Ghana, Legon. 2011
ISBN 978 – 9988 – 1 – 5848 – 4

1 | IAS -AngloGold Ashanti (Ghana) Lecture on Business in Africa
WELCOME REMARKS BY
PROF. AKOSUA ADOMAKO AMPOFO, DIRECTOR, IAS
Madam Pro-Vice-Chancellor, Professor Yaa Ntiamoa-Baidu; Prof. Kofi Anyidoho,

Chair, Kwame Nkrumah Chair in African Studies; Mr. Mark Cutifani, Chief
Executive, AngloGold Ashanti Group; Dr. Toby Bradbury, outgoing Snr. Vice
President AngloGold Ashanti Ghana; Dr. Kwame Addo-Kufuor, Vice-president
Corporate Affairs, AngloGold Ashanti;Mr Steve Knowles, Director Malaria control,
AngloGold Ashanti Ghana; Messrs Billy Mawhasha and Kwesi Enyan, MDs of
Iduaorim and Obuasi mines respectively; Mr John Owusu, General Manager, Public
Affairs; & Ms Matilda Ohene, Manger Administration; Nana Sobin Kan II, Ag.
President Adansi Traditional Council; Nana Afiamoa Kotokuo II, Chief of Samso;
Nana Aboagye Agyeman Krontihene of Fomena; Colleague Senior and Junior
members of the University of Ghana; Invited guests; Members of the Press;
Distinguished Ladies and Gentlemen.
I am extremely pleased to be welcoming you to this second in the AngloGold Ashanti

lectures on Business on behalf of the Institute of African Studies and the University of
Ghana. I am doubly pleased because today’s lecturer is not only a distinguished
businessman, but also was Chairman of Council during most of my tenure on Council.
The Chairperson will be introducing him to you shortly but I must use this opportunity
to share an insight into this manwith whose level of disciplineI became deeply
impressed. I joined Council at a tumultuous time, and we not only had many
emergency meetings, but often we would begin at 2.00 p.m. and sit until well after
8.00 p.m. In today’s world when people seem to be ruled by their cell phones, I
cannot recollect ever seeing Mr. Oteng-Gyasi answer his phone when chairing a
meeting. Furthermore, while most of us got up frequently to make selections from the
delicious fare provided for our physical sustenance, he remained in his seat, refreshed
mainly, it appeared to me, by his bottle of water. It spoke volumes to me about his
success as a leader.
Madam Chair, before I make a few remarks on the import of today’s event I should
like to acknowledge staff and colleagues of the Institute, the Public Affairs
Directorate, and Mr. John Owusu of AngloGold. For such public events there is
always a great deal of planning and coordination and they worked seamlessly together.
If there are any hiccups at all today this is definitely not for want of effort and
diligence on their part, but merely a vignette to ensure that you remember today.
Madam Chair, since this is only the second in the series of lectures one could be
forgiven for wondering about a collaboration between an Institute of African Studies
and a major global mining company. During her welcome remarks at the first lecture
held on October 23, 2009, Prof. Brigid Sackey, the then Ag. Director, explained the
rationale and benefits of this marriage and I would like to underscore briefly what we
do here at the Institute and the nature of our relationship with AngloGold Ashanti.
The Institute of African Studies was set up in 1963 as a site for research and teaching
on Africa that would, in Kwame Nkrumah’s words, “make a specific contribution to
the advancement of knowledge about the peoples and cultures of Africa”. The
relevance of that call has not diminished; indeed, in our current geo-political context it
is even more salient. Our work as researchers and teachers spans 6 sections:Societies
& Cultures; Language & Literature and Drama; Religion & Philosophy; Music &
Dance; History & Politics; Media and Visual Arts. We maintain a museum, library,
publications unit, media archive and the Ghana Dance Ensemble. The Institute has
also managed the Manhyia archives for several decades, ensuring that these
fascinating records are preserved and made accessible to the general public. We
currently have on staff 20 faculty, 44 support staff, 23 members of the Ghana Dance
Ensemble, and 78 registered Masters and PhD students. Additionally we teach one of
the University of Ghana’s six (6) required undergraduate courses – Introduction to
African Studies – which provides all of our undergraduate students with an
opportunity to be introduced to the theories and methodologies of Africana studies.
Our current research areas are many and diverse and time will not permit me to
mention them here. I like to note, however, that as researchers we must constantly
expand and revise our knowledge on Africa based on the newest research. We should
also be known as leaders and forceful advocates on Africa and her Diaspora through
the public presence we develop. The partnership with AngloGold Ashanti is a major
platform through which we seek to do this, and to date they have supported us in this
endeavour via two (2) initiatives: these annual lectures, and the endowed Kwame
Nkrumah Chair in African Studies.
Kwame Nkrumah Chair
In 2005, efforts by successive Directors of the Institute, and collaborators

knowledgeable about the role of Kwame Nkrumah in the Pan Africanist movement
and discourse culminated in a decision by the University of Ghana to establish a

Kwame Nkrumah Chair in African Studies. This endowed Chair, the first at the
University of Ghana, was established with a two-fold aim: 1) to honour Nkrumah for
his significant intellectual contributions to African thought, and for his vision and
commitment to the liberation and development of Africans on the continent and in the
Diaspora; and 2) to promote research, teaching and outreach on Africana Studies. The
Chair received most of its core funding from AngloGold Ashanti and was formally
launched on Friday, September 21, 2007. We remain deeply grateful to AngloGold.
Today we are most pleased that the first occupant of the Chair, Professor Kofi
Anyidoho, is here with us, for through a variety of initiatives, foremost being the 2010
International symposium and cultural festival titled “THE DREAM, THE
REALITY: REASSESSMENTS OF AFRICAN INDEPENDENCE”, he has
exceeded our expectations in providing a platform for some of the unfinished business
of a renaissance of African knowledge to occur.
Annual AngloGold Ashanti (Ghana) Lectures on Business in Africa
The second initiative is the AngloGold Ashanti lectures on business in Africa, for
which reason we are gathered here today. In an era rife with cynicism, or perhaps at
best scepticism about the practical reality of African independence, the philosophy
behind the lectures was to highlight prominent business efforts and business persons
in Africa, as well as reveal the multiple ways in which businesses shape, and are
shaped by our socio-political development. Thus, the lectures are a platform to
highlight not only the diversity, resilience and innovation of African businesses IN
Africa, but they also provide an opportunity for us to look outside our proverbial
boxes and see the synergies between ideas and practice. We were honoured to have
the first lecture delivered by Mr. Mark Cutifani, Chief executive of the AngloGold
Ashanti Group, on October 23rd 2009. He spoke on the subject “The Role of the
Minerals Industry in the Economic Development of Africa – Pathway to a Sustainable
Model”. I believe that at the end of it he had won over some of the sceptics.
Madam Chairperson, before I take my seat let me say a few words about AngloGold
Ashanti. While some of us are frequently sceptical, and dare I say rightly so, about the
work of mining companies in Ghana I think there are 2 important facts to note: 1) the
minerals industry is an important part of our economy and Kwame Nkrumah
recognised this; and 2) mining and other extractive industries can be socially
responsible and beneficial to host communities. When I attended AngloGold Ashanti’s
2011 stakeholders forum I was pleased to learn about many of their new initiatives.
The town Obuasi is synonymous with gold. Obuasi was an Akan settlement which
emerged in the confluence of the Ofin and Pra rivers. In the early 17th century, as the
people of Obuasi looked to make a living through exploitation of the available natural
resources, they discovered the rich gold-bearing rocks of the region. However, mining
was basically artisanal, including pit mining as well as alluvial mining in the river
basins. The growth of Obuasi was stimulated by the discovery of large gold deposits
in 1897. The British invasion of the Asante Empire towards the end of the nineteenth
century, and the building of the railway from Sekondi in 1902, would modernize gold
mining and production in Obuasi. Eventually mining became the major economic
activity of the area.
The Ashanti Gold Fields Corporation mine at Obuasi has been in operation for the
past 110 years and can be described as the single largest industrial hub of the
Ghanaian economy.1 It has produced over 30 million ounces of gold since its
inception and accounts for over 60 per cent of the total national gold production. It is
one of the world’s richest gold mines in terms of yield per ton of ore. By the end of
the 20th century, it was the 10th largest gold mine in the world (AngloGold Ashanti,
2011). In 2004, as a result of the merger between the former Ashanti Goldfields
Company of Ghana and AngloGold Ltd of South Africa, the AngloGold Ashanti
group was born and it is currently the world’s third largest gold producer. It has 21
operations and exploration programs around the world on four continents. In Ghana,
AngloGold Ashanti has two operating mines, namely the Obuasi Underground and
Iduapriem mines in the Ashanti and Western Regions, respectively; and in 2010
together they produced 502,000 ounces of gold. The Company’s vision is “to be the
leading mining company” and its mission is “to create value for shareholders,
employees and business and social partners through safely and responsibly exploring,
mining and marketing products”. Their primary focus is gold but they pursue value
creating opportunities in other minerals.
As at 31 December 2010, AngloGold Ashanti’s group ore reserves totalled 71.4

million ounces and they currently employ about 63,000 people, including almost 9000
Ghanaian employees and direct contractors (in Obuasi and Iduapriem). Group gold
production for 2010 was 4.6 million ounces, with 4.98 million produced in 2009.
AngloGold Ashanti is quoted on the Accra stock exchange (where it makes up over
1 In 2004 Ashanti Goldfields Corporation and AngloGold merged and the new
company, AngloGold Ashanti Limited, is a multinational company at work in Obuasi
and Iduapriem.
60% of the entire market capitalization) in addition to being listed or quoted in

Johannesburg, London, New York, Paris, Australian and Brussels bourses.
The company has spent $811million in supporting its Ghanaian operations since 2004
and has paid direct and indirect taxes amounting to $279.5 million to the government
of Ghana in the same period.
Madam Chair, as researchers we are seeking to interest AngloGold Ashanti in

exploring emerging issues that are directly associated with livelihoods in Obuasi–
leisure, migration, community relations, social cohesion, community aspirations, and
community-industry collaborations—and I would like you to join me in encouraging
such a project. For now, I wish to thank them once again, and welcome you all to this
afternoon’s lecture.
BRIEF PROFILE
ANTHONY (TONY) OTENG-GYASI
Mr. Tony Oteng-Gyasi was born in Kumasi in 1955.
For his Bachelor’s degree, he majored in Economics at the

University of Ghana, graduating in 1975. In 1987, he entered
the Law Faculty of the University of Ghana and obtained the
Qualifying Certificate in Law. He was called to the Ghana
Bar in 1989 after another two years at the Ghana Law
School.
In 1976, after one year of National Service with the Research Department of the Bank
of Ghana, Mr. Oteng-Gyasi joined the Ghana Operations of British Petroleum. During
this time, he obtained his Diploma in Marketing from the Chartered Institute of
Marketing, United Kingdom (UK). He spent nine (9) years working with BP Ghana
and attended various management training courses in the United Kingdom.
In 1986, Mr. Oteng-Gyasi’s entrepreneurial instincts led to his resignation from BP

and the setting up of his own company, Tropical Products Limited, which he nurtured
to become a successful trading and manufacturing firm. Tropical Products Limited
became the largest manufacturer of crates and pallets in Ghana. In 1997 he set up
Tropical Cable and Conductor Limited a cable manufacturing company. This modern
factory, located in Tema, is the first wholly Ghanaian owned Cable Manufacturing
company in Ghana.The company manufactures electric and telecommunications
cables for the sub-region and is the first cable manufacturer in Ghana with ISO 9001
Certification. In 2007 he set up the only continuous casting and rolling factory for the
production of EC grade Aluminium Rod in West Africa. The company, Western Rod
& Wire Ltd., has become a source of raw material for aluminium conductor
manufacturers in the region.
TONY OTENG-GYASI won the year 2000 Empretec Star Award for Entrepreneurial
Achievement. In 2001, his Company, Tropical Cable & Conductor Ltd., was
adjudged the fastest growing Empretec Client Company. In the same period, the
Company was also shortlisted for the Shell Award for sustainable development by
Worldaware Institute, the prestigious United Kingdom Institute which Her Majesty
Queen Elizabeth as patron.
During Indutech 2005 (Industrial and Technology Fair), Mr. Tony Oteng-Gyasi
received the outstanding personality in the electrical sector. In that same period, he
was selected as Marketing Man of the Year by the Chartered Institute of Marketing.
In 2008 a survey of top Chief Executive Officers undertaken by Price Waterhouse
Coppers voted him the 4thmost respected Chief Executive Officer in Ghana. Mr.
Oteng-Gyasi is a recipient of the Distinguished Service Award from the Economics
Department of the University of Ghana. The Republic of Ghana has awarded him the
Order of Volta for his services to industry. He was Chairman of the Oversight
Committee of the Private Sector Development Strategy over the period and the recent
calculations show that Ghana has attained the middle income status.
Mr. Oteng-Gyasi served two terms as the Vice President of the Ghana Furniture
Producers Association. He has served two terms on the Council of the Ghana Stock
Exchange and has also been a member of the Council of the Ghana Institute of
Management and Public Administration (GIMPA).He is the immediate past Chairman
of the University of Ghana Council, and the immediate past President of the
Association of Ghana Industries.
Mr. Oteng-Gyasi is currently the Chairman and Managing Director of Tropical Cable
and Conductor Ltd.; the company is ranked no. 17 on the list of Ghana’s one hundred
largest companies – Ghana Club 100.
He is chairman of Western Rod & Wire Ltd. and sits on several boards including the
Export Development and Investment Fund (the USD 50 million fund for export
development).
Mr. Oteng-Gyasi is a fellow of the Chartered Institute of Marketing Ghana and an

Honorary Fellow of the Ghana Institution of Engineers. He is married to Barbara and
they have five (5) children. Tony Oteng-Gyasi is a keen squash player.
Abstract of Lecture
After over one hundred years of foreign rule and domination, the people of the then
Gold Coast achieved the right to govern themselves as an independent state on 6th
March 1957. Many of the actors involved in the struggle to achieve independence
have earned themselves places in the history of our country. In Accra, streets, bridges,
roundabouts and other prominent landmarks have been named after them to honour
their memories. In the year 2007, when Ghana celebrated the golden jubilee of her
independence, the memories of the "big six" were evoked at every opportunity and
rightly so. The old saying about a nation which fails to honor its heroes is well known
and quoted often. The climax of the yearlong celebration was a colourful exuberant
anniversary parade which most agree, will not be forgotten in a long while.
In 2009, during the centenary of the birth of one of the major leaders of the
independence struggle and first President of Ghana, Osagyefo Dr. Kwame Nkrumah,
there was another yearlong celebration to honour this hero.
In the midst of all these celebrations, at an informal discussion with friends and
colleague members of the Association of Ghana Industries, we started wondering who
the financiers of the independence struggle were. The discussion soon expanded to
include the financiers of the various political changes our country has gone through.
Were these unknown and largely ignored citizens to be considered heroes, or villains?
Had they done well by their country? What were their intentions? And most
importantly of all, are there any lessons to be drawn from their invisible/yet-to-be-
unearthed roles?
In setting out to try and answer some of these questions, I am encouraged by

American history where men such as Robert Harris and Haym Salomon are
recognized as financiers of the American Revolution. While they have not achieved as
much prominence as George Washington, who, I must add, is also acknowledged as a
financier of the American Revolution in his own right, (but became much better
known as president), they are sometimes mentioned together. For instance in 1941,
the George Washington, Robert Harris, Haym Salomon memorial was erected in
downtown Chicago in their joint memory.
This lecture is a sweep through history from the pre-colonial era, through the colonial
era to the independence movement, and on to the post independence civilian and
military governments our country has experienced. I will seek to unearth for us the
heroes and/or villains who aided the various forms of government to find a foothold
through the financial support they provided.
Finally, I examine the current provisions for funding political parties and end with
some recommendations.
Financiers of political change in Ghana.........heroes and villains

Mr. Chairman, Honourable Ministers of State and Members of Parliament, Vice-
Chancellor and Pro-Vice-Chancellor, your Excellencies, Members of the Diplomatic
Corps, Directors and Chief Executive of AngloGold Ashanti, Captains of Industry,
Distinguished faculty of the Institute of African Studies and of this outstanding
University, Nananom, Niimei, members of the Press Corps, Ladies and Gentlemen,
It is a great honour for me to have the privilege to share my thoughts with you this
afternoon on a topic which is of importance in our governance arrangements but
which is not oftenmentioned.
The financing of political activity is important because the wheels of politics are oiled
by financial resources. However, mention of money in politics somehow seems to be
in not so good taste. I suspect this is so because the ideals which are usually espoused
in politics are the so called higher ideals such as liberty, freedom, equality. The kind
of emotions these high ideas arouse have no place for talk about money and finance.
It is as if the pursuit of such noble objectives should not be tainted with something as
trivial as money and finance. In this context any talk of money sounds mundane and
even petty.
However in relatively recent times, as concerns about employment, job creation and
economic development have become accepted as a central theme of political activity,
the reticence of discussions about money has reduced. It has been long acknowledged
that an army marches on its stomach, and so is every political activity dependent on a
good flow of financial resources.
The purpose of political activity is to achieve change. This may range from change in
the circumstances of the individual to the ultimate of change in government, especially
if the government is unable to bring about an improvement in the circumstances of the
individual.
A review of the financing of political change in our country must necessarily start
with what may arguably be the biggest change of all. I am talking about the change
from a colony to an independent state. It is impossible to talk about this major
political change without mentioning two names.
In whatever context and on whichever occasion the history of Ghana is recounted, the
name of Kwame Nkrumah cannot be ignored. Indeed he has, in death become more
than an embodiment of Ghana's independence struggle. He has become recognized
globally.
In one of the conveniences of modern technology, the global stature of Kwame

Nkrumah was vividly brought to me as I was doing a draft of this paper on my I-pad
one evening. Anytime I typed in Kwame in lower case, it came out with a capital "k".
My curiosity made me start trying out other Akan day names: Kofi, Kojo, Akosua,
Abena etc. No other Akan day came out with the first letter automatically capitalized.
Next I noticed that the Nkrumah name did the same with the "n" coming out
capitalized. Kwame Nkrumah of Ghana has become so globally recognized that
Apple Computers have pre-programmed his name into their computer operating
software.
I started trying out the names of other famous Africans. I found only one other name
which had been pre-programmed to come out with the first letters capitalized. I will
tell you whose name that is in a minute.
It is in honour of Kwame Nkrumah that we are assembled here today. It is in his

memory that this lecture series was instituted. We pay tribute to the man and his
legacy. This is the man who was chosen as the African of the Millennium in the BBC
World Service poll at the turn of the millennium in the year 2000. We salute him.
Let me hasten to add that despite my personal admiration for the Osagyefo, I do not
refuse to examine him with a critical eye. The aim is not to disrespect him but to
examine him with a view to learning from him, from both his achievements and his
mistakes. I do not seek to discredit him, but to humanize him. The tendency to deify
our heroes is one we must resist, if we are to fully benefit from their experiences.
The second name which is invariably associated with our country is the name of a
precious metal: Gold. It even lent itself to our country as we were named: The Gold
Coast. (By the way, the Gold Coast is not similarly pre-programmed on the I-pad).
This precious metal which encouraged foreigners to seek a more permanent residence
on our shores continues to draw investors to our country.
I wish to acknowledge the sponsor of the Kwame Nkrumah lecture series: AngloGold
Ashanti. This company has also endowed a chair in African Studies in honour of
Kwame Nkrumah. The first and current occupant of this chair is the distinguished
scholar, Professor Kofi Anyidoho. I believe he is here with us today. Thank you,
Prof, for coming.
By endowing the chair and sponsoring this lecture series, AngloGold Ashanti has
shown a commitment not merely to their operations in Ghana but also a commendable
appreciation of our heritage.
As a former chairman of the council of this University I know that the management of
this university is much appreciative of your support. The presence here of the top
brass of the University should leave you in no doubt about this. I hope that the
collaboration between AngloGold Ashanti and the University of Ghana will grow
even stronger over time and become not just a corporate social responsibility
obligation, but a true partnership with AngloGold Ashanti taking full advantage of the
excellent research facilities available in the University of Ghana.
I am reliably informed that the name "Ashanti" is a much sought after brand name in
the Gold industry. I hope it has brought you, AngloGold Ashanti, appropriate value.
The only other African whose name I found pre-programmed on the I-pad is from
South Africa, the home of AngloGold Ashanti. Of course I am referring to Nelson
Mandela. A great icon of Africa and the world. I am sure Madiba is proud of your
work in Ghana. Long may that continue.
Mr. Chairman, permit me to also acknowledge Mr. Mark Cutifani, the then Managing
Director of AngloGold Ashanti who delivered the first lecture in this series in October
2009. I have had the opportunity to peruse his excellent and stimulating lecture. He
has blazed the trail and I am sure future lecturers in this series will join me in thanking
him for setting a high standard for the series.
BACKGROUND
After over one hundred years of foreign rule and domination, the people of the then
Gold Coast achieved the right to govern themselves as an independent state on 6th
March 1957. Many of the actors involved in the struggle to achieve independence
have earned themselves places in the history of our country.
In Accra, streets, bridges, roundabouts and other prominent landmarks have been
named after them to honor their memories. In the year 2007, when Ghana celebrated
the golden jubilee of her independence, the memories of the "big six" were evoked at
every opportunity and rightly so. The old saying about a nation which fails to honorits
heroes is well known and has been quoted often. The climax of the yearlong
celebration was a colourful and exuberant anniversary parade which most agree will
not be forgotten in a long while.
Again in 2009, the centenary of the birth of the undoubted leader of the Independence
struggle and first president of Ghana, Osagyefo Dr. Kwame Nkrumah, there was
another yearlong celebration.
A year later in 2010, the centenary of another of the big six was launched. An annual
lecture series which had been started soon after his death by his mostly Christian
friends was expanded into a yearlong series in his honour. It may be worth noting that
Paa Willie, as he was popularly known, had lived longer than any of the big six, and
stayed active in national politics having stood for president in 1979.
In the midst of all these celebrations, at an informal discussion with friends and
colleague members of the Association of Ghana Industries, we started wondering who
the financiers of the independence struggle were. The discussion soon expanded to
include the question of whether there were any financiers of the subsequent political
changes our country has gone through. If so, were these: unknown and even if known,
or ignored financiers to be considered heroes, or villains? Had they done well by their
country? What were their intentions? And most important of all, are there any lessons
to be drawn from their unacknowledged roles.
In setting out to try and address some of these issues, I am encouraged by American
history where men such as Robert Harris and Haym Salomon are recognized as
financiers of the American Revolution. While they have not achieved as much
prominence as George Washington, who I must add, is also acknowledged as a

financier of the American Revolution in his own right, but became much better known
as president, they are sometimes mentioned together. For instance in 1941, the
George Washington, Robert Harris, Haym Salomon memorial was erected in
downtown Chicago in their joint memory.
For a series on business in Africa, my choice of topic may sound unusual. It is

informed by the belief that the business community needs to show more interest in
governance in addition to economic policy management. Political stability has been
identified as one of the first conditions investors (both local and foreign) look out for.
Political stability is not one man rule or one party rule, but rather the peaceful and
orderly transfer of power at predetermined intervals. It may be to the same or different
persons. It may also be to the same or different parties.
I consider orderly change as a desirable and necessary element of political stability.
As mentioned earlier, change necessarily requires finance. It is the desire to see a
transparent, structured, predictable, financing system in place that has resulted in my
choice of topic for today. I intend in this lectureto examine the financing of political
changes in our country over time.
Financing political change in Ghana.
The heroes and villains part of my topic relates to whether the change sponsored by
financiersenhances stability of the state or not. In this regard I would have you note,
Mr. Chairman, Ladies and Gentlemen, that the question of whetherchange has
enhanced or not enhanced political stability can often not be determined until long
after the change event. To give a recent example: I am sure you will agree with me
that the recent election in La Cote d'Ivoire seems not to have enhanced stability in that
country. This is not to say that the country would have been better off without the
election. I merely seek to have the judgement on what enhances political stability not
too hastily made. Current events in that country may at some future date be said to
have sown the seeds of political stability. We can at that future time then decide
whether political stability has been enhanced or not in that country. We may then
determine if those who financed these events are heroes or villains.
For a lecture, I necessarily must condense some of the material for the sake of time
lest I put some of you to sleep. I hope however to stimulate a discussion of the issues
which will come up and maybe excite some researcher enough to undertake a more
exhaustive study of the subject.
We will commence our sweep through history from the pre-colonial era, through the
colonial era to the independence movement and the post-independence civilian and
military governments our country has experienced.
The Pre-Colonial Era
The arrival of the Portuguese on the shores of the then Gold Coast in 1471, followed
by the Dutch and later the English, and the Danes was initially welcomed by the local
people for the trading opportunities it brought. Traders from afar were not a new
phenomenon. Such trading activity had been carried on for centuries with other
foreigners who had come earlier on, from across the Sahara. These were the Arabs and
their Sahelian allies. This contact with foreigners had resulted in some minor
conversions to Islam, but no permanent signs of such contact beyond the existence of
a few mosques such as the Larabanga mosque which has been dated as early asto the
13th century (see Ghana at fifty website)2.
Immediately the new arrivals from across the seas showed signs of wishing to
establish a form of permanent presence the local people resisted the idea. The first
castle was built in Elmina with a mixture of deceit, subterfuge and brutal force in
1481; ten years after the Portuguese first arrived.
Over time, more castles were built, ownership of these castles changed hands from
time to time as their owners fought one another for supremacy. Eventually these
foreigners who had come from across the Atlantic Ocean assumed control over what
they called the colony.
The resentment of our people for these foreign intruders was always present even
when some of our peopleformed alliances with these foreigners for short term
advantage. Traditional rulers such as Kobena Gyan of Elmina, Aggrey of Cape Coast,
Prempeh the first and Yaa Asantewaa, both of Ashanti, fought against colonial
domination. Even after they lost the military battles to stay independent, due primarily
2
http://www.ghana50.gov.gh/ghana50/
to the overwhelming advantage of the colonisers in the weapons of warfare, the desire
of our people for freedom was undiminished and was demonstrated in various forms at
every opportunity.
From time to time, this desire for freedom burst out as happened in 1693 when
Asamani took over the Christiansburg castle in Accra. The daredevil exploits of this
merchant areworth recalling (as recounted by W.E.F. Ward (1948) in his Short History
of Ghana). Trained as a cook for the English, Asamani, originally from Akwamu,
become a trader and an interpreter. Having previously informed the governor that he
would be bringing a large group to purchase arms, he arrived in the castle with a party
of eighty men laden with gold and ivory. While inspecting the guns they loaded them
with hidden bullets, took the castle and made the Danes prisoners. The Danish
governor fled through a window with gunshot wounds and a broken arm. Asamani
ruled as governor trading with the ships that called, especially the English ones. He is
said to have even hosted the English governors of James Fort and Winneba to dinner
one evening and fired 200 shots from the castle cannons in salute. After almost one
year, the Danes negotiated to buy back the castle.
Over time it became apparent that the fight for independence had to be pursued in a
smarter manner with other weapons. Economic power and education eventually gave
our people the weapons to launch a credible fight for freedom. Our focus today is on
the economic power.
By the beginning of the nineteenth century wealthy local merchants started getting
involved in the fight against colonialism. Cape Coast and Sekondi produced
merchants like George Blankson, Francis Chapman Grant, Thomas Hughes and R.J.
Ghartey. Francis Chapman Grant, for instance, was a wealthy merchant involved in
gold mining. He was a member of the first gold mining syndicate owned entirely by
Africans. It was known as the Gold Coast Concession Purchasing Company. Francis
Chapman Grant was grandfather to a man who was destined to become much better
known in the Gold Coast. However it will be a disservice to his memory if we do not
mention that he was one of the first persons to advocate immediate independence.
According to Dr. Ephson in "Ghana Celebrities" quoted on the website:
(www.conventionpeoplesparty.org/index.php) he was "one of the leaders of the
political agitation during the days of the Fante Confederation from 1867 to 1874. He
even advocated self government at that time". This idea of "self government now"
may thus have originated from this merchant prince, though it took Kwame Nkrumah
to make it into a political mantra and use it effectively. It is however proper that due
credit is given to those who originated it.
Thomas Hughes on his part, was a perfume manufacturer, who is said to have been
one of the first Africans to import and use heavy equipment for gold mining. These
gentlemen became actively involved in Gold Coast politics and spent large amounts of
their own monies pursuing good and equitable laws and ensuring a peaceful and safe
environment. John Sarbah, another prominent business person of the time, owned
stores, warehouses, surfboats, steam launches etc., etc. It was through the efforts of
John Sarbah and several of his colleagues that the first two chambers of commerce
were established in Cape Coast and Accra. They also pressured government to
improve roads, bridges and other facilities. Their joint efforts resulted eventually after
ten years, in African representation on the Gold Coast legislative council.
In Accra, James Bannerman Bruce was born in 1790 to a Ga mother and a Scotsman.
He studied in the UK and returned to marry an Ashanti princess. He became a wealthy
merchant. He was one of the founders of the Accra Native Confederation which he
financed generously. The purpose was to oppose British Colonial authority and
ensure the formation of a united native government.
In the present day Volta Region also, the early nineteenth century saw other African
merchants, notable among whom were William N. Ocansey and Isaac Pupulampu,
who competed with European owned firms such as F and A Swanzy.
Looked at with today's lenses, some of these early financiers of political activity and
their organisations may seem tribal and divisive, but we must remember that these
were the days when each tribe was a virtual nation state and the idea of Ghana had not
been conceived. Even the Gold Coast was more of a geographical description than the
name of a country. These were some of the people who used their wealth to fund the
earliest political activity in what was to become the Gold Coast colony and eventually
Ghana.
It is useful to note, as has been noted elsewhere, that there was often great tension
between the traditional rulers and these new wealth-based centres of power. This
should not surprise us, as the colonial power regularly sought to use the divide and
rule strategy to fragment and minimize opposition to itsrule.
Permit me, Mr. Chairman, to concede that their opposition to the British was
sometimes, maybe even often, meant to merely enhance their own mercantilist agenda
and not necessarily to oppose British rule. However unintended as it may have been, it
demonstrated to other local people that opposition to the British by local people was
possible, and the little victories they won, no doubt inspired others to seek more
politically significant fights.
THE COLONIAL ERA
It is sometimes thought that the colonial era started from 1844, when the so called
bond of 1844 was signed, because this was supposed to be the first official document
that ceded authority to the colonial power in return for protection from the internecine
wars of that period. One of the reasons for this point of view is the fact that the bond
was signed on 6th March. Thus, it is often thought that this was the reason for the
choice of that same 6th March as Independence Day in 1957. As has been observed by
prominent historians, and legal experts, (such as W E F Ward, in his History of the
Gold Coast) this line of thought is legally untenable and historically inaccurate. A
close reading of the bond document shows clearly that it cannot serve as a legal basis
for the colonization of the Gold Coast.
Whatever the misperception about the import of this document, this treaty with eight
Fante chiefs became a powerful rallying force for the independence struggle as
nationalists sought to take back the sovereignty supposedly given away when the
chiefs appended their thumb prints to this document.
Whatever the sources of their authority, the British by the late nineteenth century were
in undisputed control of most of the Gold Coast. This undisputed and firm control did
not stop opposition to their rule and their policies.
Following the commodity boom of the First World War, another class of wealthy local
people joined the fight. These were the prominent and rich cocoa merchants. Two of
them, John K. Ayew of Akwapim and Winifred Tete-Ansah of Manya Krobo
organized local farmers and dealers to refuse to sell cocoa to the big European
companies. John K. Ayew organized a number of farmers unions in Larteh and
Dodowa. He later formed the Gold Coast Farmers Association. He was against the
unilateral fixing of cocoa producer prices by the United African Company and the
other European cocoa buyers. This boycott, which lasted for eight months between
1937 and 1938, deprived British World War II soldiers of their cocoa beverage and
forced the colonial government to appoint an investigative body. This body, the
Nowell Commission, in an unprecedented ruling, condemned the big European
companies. In addition this commission recommended the establishment of a cocoa
marketing board to help stabilize prices for cocoa farmers.
Two years later, in 1940, the West African Produce Buying Board was established in
direct response to this recommendation. John K. Ayew may thus be credited with the
agitation which led to the establishment of the now indispensable Cocoa Marketing
Board. His role is largely forgotten now. This is unfortunate given the role of the
CMB in the economic fortunes of Ghana.
Despite being the grandson of a prosperous merchant prince, our next financier started
out in business as an office messenger in someone else's firm and financed his first
shipment of timber from his savings. He lost miserably, but like a true entrepreneur
stayed the course to become one of the most prosperous merchant princes and
undoubtedly the most famous financier of the independence movement. George Alfred
Grant was born in 1878 and missed seeing the culmination of his efforts by one year,
as he passed away in 1956. He was once described as the ‘Moses’ of Ghana politics,
because he did not live to see the Promised Land.
In recollections by his daughter, Mrs. Sarah Esi Grant Acquah, we have a vivid picture
of a hardworking man who was not only acutely aware of the indignities of
colonialism, but also sought to improve the material well being of his compatriots at
every opportunity. Among the many social interventions he championed were the
introduction of street lights and extension of pipe borne water to the districts of Axim
and Sekondi and the expansion of Sekondi hospital.
‘Paa Grant’, as George Alfred Grant came to be universally known, was a member of
the Aborigines Rights Protection Society and became a member of both the legislative
and provincial councils. He helped finance the trips of the ARPS to the UK to protest
against laws which would have resulted in the compulsory acquisition of all the
colony lands by the colonial government.
He was so successful in business that he opened offices in London, Liverpool and

Hamburg. He purchased a decommissioned German minesweeper and converted it
into a cargo vessel manned by an English and German crew. Not content with
enjoying his huge fortune, he devoted all his resources to freeing his country from
British colonial rule. He invited J. B. Danquah who subsequently brought on board
Obetsebi Lamptey, Akuffo Addo and Ako Adjei. They were joined by Francis
Awoonor Williams, de Graft Johnson and William Ofori Atta. As the youngest, Ako
Adjei was made secretary to this group, which became the United Gold Coast
Convention. Requested to suggest a successor after serving as secretary for two years,
Ako Adjei proposed the person who would turn out to be one of the most astute
politicians this continent has ever produced. He wasthe person in whose honour this
lecture series is devoted. Of course I am referring to Kwame Nkrumah.
Paa Grant bore the expenses for Nkrumah's return to the Gold Coast, and sent his
personal car to bring him home from the port on his arrival. He accommodated the
young returnee for four months until Kwame's house in Saltpond was ready.
The colonial administration was not kind to Paa Grant. In a scenario which has been
played over and over by subsequent administrations, Paa Grant's business interest was
frustrated at every turn. One example: R. T. Briscoe had come to the Gold Coast from
South Africa to invest. He became friends with Paa Grant who introduced him to the
timber industry. The colonial administration banned the export of round logs. Paa
Grant and his friend each set out to build a sawmill. They finished around the same
time. Electricity was promptly extended to R.T.Briscoe's factory but not to Paa
Grant’s.
I mention this incident because it is widely believed among the indigenous business
community that a local business person dabbles openly in politics at his own peril.
This, apparently like many of our political practices, is a governance technique carried
over from the days when we were governed by colonialists. Fifty odd years after
independence, we should not disable any business for political reasons. The entire
country is the loser if such a policy is pursued, overtly or covertly.
There is no doubt that Paa Grant stands heads and shoulders over any other financier
of the independence movement.
Post Independence
Having played such an important role in the independence struggle one would have
thought that these merchants would form the backbone for a strong and vibrant private
sector. In the history of economic development, it is usually money earned from

trading which gets invested in manufacturing. It is manufacturing which provides the
impetus for economic transformation.
For reasons which have been speculated upon elsewhere, such as his experiences as a
black man in racist Depression era America, the leader of the newly independent
Ghana seems to have been uncomfortable with the idea of a truly indigenous private
sector.
In recent times, especially during the jubileecelebrations, there has been much talk
about Kwame Nkrumah's industrialization drive and his encouragement of the private
sector. I am afraid I am unable to say with any certainty that he promoted the
indigenous private sector. He undoubtedly encouraged and actively sought foreign
investors as evidenced by his historic agreements with Kaiser of the USA towards the
Valco project and the Akosombo hydro electric dam. But, even here, his speeches
make me wonder if he merely tolerated the Valco project in order to make the
Akosombo Dam a reality. Permit me, Mr. Chairman, to quote from two of his
speeches to illustrate my point:
In a speech to the Speaker and members of the National Assembly, in parliament

house on 2 September 1960 on the matter of investment policy, he started by
reminding the parliamentarians that the nation was in the second year of the five year
development program. He went on to talk about the negotiations with American and
British aluminium interests as well as the World Bank for the realization of the Volta
River Project.
He then went on to say: 3
I think I should take this opportunity to restate the general policy of the
Government in regard to the broad economic structure in connection with
our national development. We recognize that Ghana, like virtually every
country in the world, does not have all the capital available to do
immediately all the things that we should like to achieve. It follows
logically, therefore, that it is essential for us to make the very best use
3
Obeng, S. 1997‘Selected Speeches of Kwame Nkrumah’ Vol. 1. Accra: Afram Publications
possible of our own capital and to obtain as much capital as possible from
abroad.
I wish now to define the respective roles of the capital which is available
within Ghana and of capital which comes from abroad. We have divided the
economic structure of our economy into four different sectors. First, the
state sector in which all enterprises are state owned. Second, the joint state-
private sector which will incorporate enterprises owned jointly by
Government and foreign private capital. Third, the co-operative sector in
which all enterprises will be undertaken by co-operative organizations
affiliated with the National Co-operative Council, and fourth, the Private
Enterprise Sector which will incorporate those industries which are open
freely to foreign private enterprise.
Please note that there is no room for indigenous private ownership! He continues:
As to private enterprise financed by capital from overseas, the Government's

policy as enunciated in my own policy statements on 1st March 1954, and
3rd September 1958 remains unchanged, but in future the Government
intends to place far greater emphasis on the development of Ghanaian Co-
operatives rather than encourage Ghanaians to start private business
enterprises.4
Several questions come to mind after reading this speech: Why was the local private
sector so obviously discriminated against in favour of the foreign private sector? Why
the reluctance to encourage Ghanaians to start private business enterprises?
Why should the co-operative movement with its principles of collective ownership be
made to replace the individual owner based private sector which had helped finance
the struggle for independence? Did this discrimination sow the seed for the continuing
better performance of foreign businessmen than local ones in Ghana? Beyond
ideology, was there any reason for Kwame Nkrumah to disliked local private
4
Obeng, S. 1997: Pg.151 ff
enterprise? Was the newly independent Ghanaian culturally amenable to these ideas of
collectivism?
I do not intend to answer these questions because the answers would take me away—
in directions too far away from my central theme today. I only wish you to ponder
over them at your leisure.
Permit me to only say that with the benefit of hindsight we know the cooperative
movement did not live up to expectation. We also know that the state owned
enterprises did not do much better either.
It will be prudent for us to learn the appropriate lessons in our quest for workable and
culturally effective development models.
While it is fashionable in Ghana to pretend that the coup which ended Kwame
Nkrumah's government stopped a march towards economic prosperity based on his
ideals, we should acknowledge that the experience of other countries which continued
with similar policies such as Tanzania, Zambia, the USSR and GDR should make us
pause and wonder.
There is nothing wrong in acknowledging that our national heroes and heroines could
be wrong in certain areas of their endeavours. As I said earlier we do not need to
deify human beings as infallible in order for us to consider them great.
Before I move on to the second Kwame Nkrumah quote, let me make a second
observation. The investment policy enunciated above must have startled the local
private sector, who had paid their dues in the struggle for political independence. Why
were they suddenly not exactly welcomed in the country they had fought to free? It
was suggested to me that some of the people who became political albatrosses around
Kwame Nkrumah's neck had remained in politics after independence because they
could not pursue their preferred interests, which lay within the private sector. This was
because the idea of private ownership had become ideologically unacceptable after
independence. Some of them were therefore forced by the ideology of the times to
stay in politics in order to make the money they could not legitimately seek as private
sector operators.
Now to the second quote.

A little over a month later Kwame Nkrumah repeated many of his sentiments in a
speech on trade policy. I quote a few excerpts merely to illustrate that these sentiments
on economic policy were not isolated statements.
I now wish to clarify beyond any doubt the Government's economic

policy........the Government intends to place far greater emphasis on the
development of Ghanaian Co-operatives rather than encourage Ghanaians to
start private business enterprises............this purely private enterprise sector
mainly concerns investment from abroad............ If there are fears of
permanent foreign domination in the commercial and industrial fields of our
economy, these fears should be immediately and permanently abandoned.
The Government has already taken adequate measures by limiting the tenure
of leases and concessions and by clearing foreign elements from the
ownership of land. [Obeng op. cit: Page 179]
I wish to end this section with a quote which expresses in better language than I can the
contradiction of those times:
.. it is contradictory that these merchant princes were to support, encourage

and underwrite the expenses of the struggle for independence of the Gold
Coast from colonial rule only to lose their economic dominance and power
in the emerging post colonial Ghana largely as a result of the new economic
paradigm promoted by the one party, pro-socialist CPP Government.5
The Military Regimes
The military has on four occasions taken over the administration of this country by
force of arms. Who have been the financiers of these political changes?
Let me confess that it has been difficult obtaining information about some of these
changes. This should not surprise us if we remember that planningsuch changes are
generally illegal acts. Three issues to be noted here:
5
See Dadzie and Ahwoi 2010 Justice D. F. Annan: In the Service of Democracy. Accra:
Sub-Saharan Publishers
First, records of such planning are generally not kept and unlikely to be made public
even if they exist, mainly because they would negate the patriotic principles which the
actors would have the world believe are their main drivers.
Secondly, the passion of fighting foreign domination of one’s country can scarcely be
matched with the political adventurism associated with military coups in Ghana.
Thirdly, even when successful, the financiers who are invariably non-military people,
are easily ignored, and have no way to pursue whatever claim they may have had in
mind.
The February 1966 coup which overthrew Kwame Nkrumah's government is now
generally known to have been planned and generously financed by foreign western
governments and their intelligence agencies. The Central Intelligence Agency of the
United States of America is usually mentioned in this context. Declassified national
security council of the USA and CIA documents of the period and writings by former
intelligence operatives, notably John Stockwell, in his book titled ‘In search of
enemies: A CIA story’ offer fairly incontrovertible proof of these actions. It is obvious
that the charismatic Kwame Nkrumah had become a thorn in the flesh of the western
world in those cold war days with his strong anti-west rhetoric. The means of Kwame
Nkrumah's undoing is instructive because the foreign financing of political change in
Ghana is still with us, if anecdotal evidence about political party financing is to be
believed. We will examine this theme later.
The 13th January 1972 coup led by Colonel I. K. Acheampong may be described as the
most hard to justify coup d'état in Ghana's history. In my discussion with a very senior
member of his government, he told me about how Colonel Acheampong had once
startled him and two others present by introducing somebody, a civilian businessman,
as the one who had provided five million dollars to finance his coup d'état.
Subsequently the said financier proceeded to make financial demands. Apparently
because those demands could not be met he got together with others and tried to
finance another coup. He was unsuccessful, got arrested and was sentenced to death
by firing squad. The obvious lesson for those who are tempted to finance violent
political change is that such actions have not brought fame or fortune to the financiers.
The military action which ended the rump of the National Redemption Council /
Supreme Military Council rule on 4th June 1979 is the closest this nation has seen to a
popular uprising since the independence struggle. In the period leading up to this
event, there was a pervading desire for change which was obvious all over the
country. Even the usually non-politically active professional associations, such as

doctors and architects, had joined the Ghana Bar Association in agitating for change.
The vehicle used for this agitation was the Association of Recognised Professional
Bodies.
The uncanny similarity with the post-independence ideological neglect of the

indigenous private sector was repeated when the called house cleaning exercise
unveiled a reign of terror mainly against the local private sector. The private sector
was made to atone for the sin of poor economic management by an inept military
government. This coup, led by junior officers, apparently had no known financiers.
There are many anecdotes about the financiers of the coup d'état which overthrew the
government of Dr. Hilla Limann's People's National Party on 31st December 1981. I
will only hint at a couple with the hope that it will prod the direct participants in those
events to come out and give our nation a more authentic version of events.
The duty to give a true and accurate account of historical events is not to be taken
lightly if posterity is to learn from our actions, and I urge the participants in the events
of those heady days to put pen to paper or tell their stories to others who will. The
recent book by Ato Dadzie and Kwamena Ahwoi is commendable.
The first is an allegation that a Tema based fishing company provided transport of
arms and ammunition for the 31st December 1981 coup, but this has never been
proven or denied. It is also alleged that a North African country provided finance.
Whatever their sources of financial and other resources the rule of the Armed Forces
Revolutionary Council (AFRC) and the early years of the Provisional National
Defence Council were extremely trying years for the private sector as a whole.
However in one of the inexplicable twists of history the same actors who had given
the private sector the worst times of their lives, changed course, and began to pursue
the most far reaching economic liberalization programme ever seen in the whole of
sub-Saharan Africa. A commentator, to whom I gave an earlier version of this paper to
review, did not agree with me and thought it would be more accurate to say that the
hard realities of running a national economy and the expectations of the general
populace in whose name the change had been made combined to make the PNDC
change course. For me the important fact is that such unlikely change happened at all.
Equally intriguing was the role played by a most unlikely actor in this drama. In their
recent biography of Justice D. F. K. Annan entitled "In Search of Democracy'' Nana

Ato Dadzie and Kwamena Ahwoi acknowledge the contribution of the long dead arms
of the merchant princes to the rule of the longest serving military regime in our
country as they describe the background of Justice Annan as follows:
Justice Annan's grandfather was a merchant prince who had a number of

Europeans working for him. He was quite wealthy by all standards and
owned several mansions in Accra. Legend has it that he financed one of the
Asere wars and was rewarded with a large tract of land in the Bukom area of
Accra. His father, Victor Benjamin Annan, (i.e. Justice Annan's father) a
grandson of King Tackie Tawiah I, king of the Ga people, became one of
the leading merchants of the Gold Coast and a treasurer, financier and
pioneer of the independence movement, the United Gold Coast Convention
(UGCC). Prior to that, he had been an activist member of the pro-poor
'manbii party' and was elected to the Accra Town Council on the ticket of
that party.
As treasurer of the UGCC, Mr. Annan's drugstore on Orgle Street, Accra,

was transformed into an office of the convention where he regularly
received UGCC stalwarts like Kwame Nkrumah, J. B. Danquah, Obetsebi-
Lamptey, Ako-Adjei, William Ofori-Atta and Kofi Baako. It was in that
environment that Justice Annan and his dearest elder sister and closest
family confidante, Regina Yaotiorkor, cut their political teeth, working in
the shop and attending to these great men of immense political stature.
It is this scion of merchant princes, Justice D.F. Annan who rises to become one of the
most liked and respected politicians this country has ever known. He is credited with
having managed the transition from military rule to democratic governance in a
masterly effort. In the foreword to same book the current President of the Republic,
Prof. John Evans Atta Mills, describes him as a statesman par excellence. I cannot
help but wonder what corporate empires Justice Annan could have grown if the wealth
of his merchant prince forebears had been his to inherit and grow, and not lost in the
post- independence socialist experiment.
Talking about political change, one remarkable fact about the PNDC regime was the
sheer number of unsuccessful attempts to overthrow the regime. In a number of these
attempts, certain people were identified as financiers. Invariably these people were
self-employed businessmen. It is possible this was the result of the violent indignities
suffered by many business people in the private sector in the first few years of the
regime as they were accused of being the cause of the economic problems the nation
was facing. Thankfully, with the passage of time, the real culprit for the economic
malaise of the country was identified. The so called economic crimes of hoarding and
profiteering were found not to be due to the greed and selfishness of business people.
The real cause was the unforgiving law of supply and demand. With this realisation,
the blind ideology of the early years gave way to pragmatism and economic reality.
Other Civilian Regimes
We have already covered the CPP government of Kwame Nkrumah and noted how the
change from that to the first military regime was financed.
Let us now look at the other civilian governments. These were the Progress Party
government of K. A. Busia, the Peoples National Party government of Hilla Limann,
the National Democratic Congress government of J. J. Rawlings, the New Patriotic
Party government of J. A. Kufour and the present government led by John Atta Mills.
K. A. Busia is thought to have been handed power on a silver platter by the remnants
of the 1966 coup makers. Hilla Limann's problems with Okutwer Bekoe, KojoBotsio
and others, including a shady Italian, were supposed to have originated from their
desire to reap the rewards of their investment in his election too quickly. According to
Mike Oquaye, (page 386 of his book: Politics in Ghana) Nana Okutwer Bekoe, Krobo
Edusei and Kwesi Armah were convicted of obtaining an illegal political loan on
behalf of their party, the PNP, from a foreign source. The loan of approximately one
million US dollars was allegedly obtained from an Italian businessman based in South
Africa called Mariamo Chiavelli. Please note the presence of foreign financing of
political change again.
CURRENT POSITION
We are left with the civilian administrations which have handed over power to other
civilian administrations. These are the governments which have operated under the
1992 constitution. Under this constitution there are clear rules regarding the financing
of political change. The rules are supplemented by the provisions of the Political
Parties Act of 2000, Act 574.
Let us now look at the two laws. Under Article 55 of the 1992 constitution, political
parties are required by law to: Declare to the public their revenue and assets and
sources of those revenues and assets; Publish to the public annually their audited
accounts. In addition: only a citizen of Ghana may make a contribution or donation to
a political party registered in Ghana.
The Political Parties Act, 574, expands these constitutional provisions by noting that a
contribution may be in cash or kind, and then proceeds to expand the definition of the
word "citizen" to include corporate citizen as follows:
A firm, partnership, or enterprise owned by a citizen or a company

registered under the laws of the Republic at least seventy five percent of
whose capital is owned by a citizen is for the purposes of this Act a citizen.
In view of our experiences as a country with foreign funding of political activity, and
the universally acknowledged dangers in allowing foreigners to fund political parties
in any country, it is not surprising that our constitution expressly states in Act 55, that
only citizens may contribute to a political party.
However, the Political Parties Act, Act 574, gives a window of opportunity to
foreigners by defining citizen to include corporate citizens, and then instead of
insisting on 100 percent ownership of such corporate citizen by a Ghanaian, proceeds
to say that a corporate citizen with only 75 percent ownership by a Ghanaian is
allowed to contribute to a political party.
It is my considered opinion that the definition of corporate citizen in Act 574, Section
23 (2) is at variance with our constitution. I do not think it will stand if challenged in
the Supreme Court. Why should we make rules with one hand and undo them with the
other? I believe this is due to our lack of confidence in our ability to finance the
expensive business of multi-party democracy which we have chosen for ourselves.
This absence of confidence is further demonstrated in S 25(3) of Act 574, where any
country or non-governmental organization is allowed to provide assistance in cash or
kind to our Electoral Commission for the collective benefit of registered Political
Parties.
It seems we have resigned ourselves to having foreigners fund our political activity.
For a people who funded virtually all political activity leading to and including our
independence struggle ourselves, this is simply unacceptable.
At election time, parties are rumoured to be bringing in money from everywhere else
but their home base. From Nigeria, Burkina Faso and Ivory Coast to as far away as
Congo and Dubai, and even further afield, foul whisperings abound as to the sources
of monies for political activities.
For a country which claims to have had its development derailed by foreign financing
of the overthrow of its first republic, one would expect strong laws against foreign
financing of political parties. It is thus surprising that we allow and actively encourage
foreign funding of political activity in our laws. The high ideals of our constitutional
provisions are undone by subsequent legislation. We all stay silent because it is
convenient.
This is most unfortunate because apart from the undue influence which foreign
financing gives non-citizens, it is also dangerous to hinge our democracy on the
generosity of foreigners. This danger was forcefully brought home to us during the
recent district council elections when the expected foreign funding did not come on
schedule. I think the time has come for our nation to walk the talk. My suggestion is
that we should introduce a special tax earmarked to fund political parties. This could
be a small tax on all adults between 18 years and 60 years old. With our ten million
adults even a tax of one cedi could raise ten million cedis each year. This would be the
seed money for the democracy fund, or the election fund that keeps getting mentioned
each time this discussion comes up. The monies would be distributed to political
parties according to an agreed formula.
Equally important is the need to reduce the expenditures of political parties. This can
be done in several ways. A few suggestions: We could limit the duration of the
political season. Expenditure on mass media by way of advertising onboth print and
electronic should be capped. All media could be compelled by law to have a
minimum amount of public interest programming each day for free. Some of this
could be allotted to political parties during the campaign season. No additional
purchases should be allowed. Specific spaces should be provided for all posters and
billboards in each town or city. Please note that there is no intention to curtail any
basic freedoms. I only seek for us to finance our own political activities.
Recent events in North Africa and the Middle East and even next door in the Ivory
Coast should reinforce for us the fact that political change is inevitable. Regimes
which seemed well entrenched have fallen overnight in Tunisia and Egypt. Others are
tottering. In some cases after four decades of single person rule, change is underway.
One of the strengths of a true democracy is the orderly and peaceful management of
political change. It is a sign of national maturity. We have started this process in our
country. We must strengthen our management of political change, finance it ourselves,
institutionalize it and pass it on to future generations.
I thank you for your attention.

REFERENCES
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Economic Performance in Ghana’. Discussion Paper Series 35. See also Journal of
Peace Research vol. 17 (2) //JPr.Sagepub.com/content/17/2/173.abstract
Agyeman-Duah, I. (ed.). 2008 An Economic History of Ghana: Reflections on a Half-

Century of Challenges and Progress, London, Ayebia Clarke Publishing Ltd.
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Prof. Akosua Adomako Ampofo, Director, I.A.S., delivering her welcome remarks at the
second in the series of the AngloGold Ashanti (Ghana) lectures on business in Africa
Mr. Tony Oteng-Gyasi delivering his lecture at the second in the series of the AngloGold
Ashanti (Ghana) lectures on business in Africa
Prof. Ntiamoah-Baidu, Ag. Pro-Vice-Chancellor (ORID), Chair of the second in the series
of the AngloGold Ashanti lectures on business in Africa
A section of the audience at the second in the series of the AngloGold Ashanti (Ghana)
lectures on business in Africa

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Institute of African Studies,

University of Ghana - Legon

2010 AngloGold Ashanti Lecture

Institute of African Studies

Institute of African Studies

2010 AngloGold Ashanti Lecture on Business in Africa

Financiers of Political Change in Ghana: Heroes and Villains?

March 29, 2011

Kwabena Nketia Conference Hall, Institute of African Studies,

The lecture was Chaired by the Ag. Pro-Vice-Chancellor (ORID),

The AngloGold Ashanti Lectures on Business in Africa are a

© Institute of African Studies, University of Ghana, Legon. 2011

ISBN 978 – 9988 – 1 – 5848 – 4

PROF. AKOSUA ADOMAKO AMPOFO, DIRECTOR, IAS

Madam Pro-Vice-Chancellor, Professor Yaa Ntiamoa-Baidu; Prof. Kofi Anyidoho,

I am extremely pleased to be welcoming you to this second in the AngloGold Ashanti

Kwame Nkrumah Chair

In 2005, efforts by successive Directors of the Institute, and collaborators

and discourse culminated in a decision by the University of Ghana to establish a

Annual AngloGold Ashanti (Ghana) Lectures on Business in Africa

As at 31 December 2010, AngloGold Ashanti’s group ore reserves totalled 71.4

60% of the entire market capitalization) in addition to being listed or quoted in

Madam Chair, as researchers we are seeking to interest AngloGold Ashanti in

ANTHONY (TONY) OTENG-GYASI

Mr. Tony Oteng-Gyasi was born in Kumasi in 1955.

For his Bachelor’s degree, he majored in Economics at the

In 1986, Mr. Oteng-Gyasi’s entrepreneurial instincts led to his resignation from BP

Mr. Oteng-Gyasi is a fellow of the Chartered Institute of Marketing Ghana and an

In setting out to try and answer some of these questions, I am encouraged by

Financiers of political change in Ghana.........heroes and villains

In one of the conveniences of modern technology, the global stature of Kwame

It is in honour of Kwame Nkrumah that we are assembled here today. It is in his

prominence as George Washington, who I must add, is also acknowledged as a

For a series on business in Africa, my choice of topic may sound unusual. It is

Financing political change in Ghana.

The Pre-Colonial Era

THE COLONIAL ERA

He was so successful in business that he opened offices in London, Liverpool and

sector. In the history of economic development, it is usually money earned from

In a speech to the Speaker and members of the National Assembly, in parliament

He then went on to say: 3

As to private enterprise financed by capital from overseas, the Government's

Now to the second quote.

I now wish to clarify beyond any doubt the Government's economic

.. it is contradictory that these merchant princes were to support, encourage

The Military Regimes

country. Even the usually non-politically active professional associations, such as

The uncanny similarity with the post-independence ideological neglect of the

recent biography of Justice D. F. K. Annan entitled "In Search of Democracy'' Nana

Justice Annan's grandfather was a merchant prince who had a number of

As treasurer of the UGCC, Mr. Annan's drugstore on Orgle Street, Accra,

Other Civilian Regimes

A firm, partnership, or enterprise owned by a citizen or a company

I thank you for your attention.

Agyeman-Duah, I. (ed.). 2008 An Economic History of Ghana: Reflections on a Half-

Alence, R. 2001. ‘Colonial Government, Social Conflict and State Involvement in

Appiah-Kubi, K. 2001. ‘State-Owned Enterprises and Privatisation in Ghana’, in The

Asafu-Adjaye E. O. 1958. ‘Ghana since Independence’ in African Affairs, Vol. 57,

Esseks, J. D. 1971. ‘Government and Indigenous Private Enterprise in Ghana’ in The

Haruna, P. F. 2001. ‘Reflective Public Administration Reform: Building

Kennedy, P. 1977. ‘African Businessmen and Foreign Capital: Collaboration or

Morrison, M. K. C. 2004. ‘Political Parties in Ghana through Four Republics: A Path

Obeng, S. 1997‘Selected Speeches of Kwame Nkrumah’ Vol. 1. Accra: Afram