UVM Theses and Dissertations
Format:
Print
Author:
Nikoi, Ebenezer Goodman Ashie
Dept./Program:
Geography
Year:
2005
Degree:
MA
Abstract:
Globalization from the 'inside out' has been little researched with regards to Africa. Nonetheless, there are good, examples of this globalisation not the least of which is the globalisation of Ashanti Goldfields Company of Ghana. From a small gold mining company mainly owned by the government of Ghana, Ashanti has been transformed into a multinational gold mining company. Before it was bought by AngloGold of South Africa in 2004, the company was owned by many shareholders including the government of Ghana and Lonmin, had six producing mines in four African countries with seven major exploration projects on the continent. The group's measured and indicated resources stood at 44 million with an annual gold output in the region of 1.6 million ounces.
A number of questions then arise including what strategies Ashanti employed to achieve its success? What was the role of the Government of Ghana in this transformation process? And what were' the problems confronting Ashanti before the takeover? These and other issues are the focus of this research which looks at the political economy of Africa generally and that of Ghana in particular, zooming in on the Ashanti Goldfields Company. The company's history, international floatation and growth strategies as well as challenges and the takeover by AngloGold have been examined. I conclude that while liberalization was initially beneficial (it has also had negative social consequences) for laying the foundation for Ashanti' s growth, once the company had been successfully transformed into a multinational corporation, excessive liberalization became detrimental to further growth and rather contributed to the worst financial crisis of Ashanti in decades. The lesson drawn is that liberalization is good for the growth of private business but requires significant oversight by the state to make growth sustainable. It is my hope that the issues discussed will go a long way to contribute to the debate on Africa and the global economy and globalisation in general.
A number of questions then arise including what strategies Ashanti employed to achieve its success? What was the role of the Government of Ghana in this transformation process? And what were' the problems confronting Ashanti before the takeover? These and other issues are the focus of this research which looks at the political economy of Africa generally and that of Ghana in particular, zooming in on the Ashanti Goldfields Company. The company's history, international floatation and growth strategies as well as challenges and the takeover by AngloGold have been examined. I conclude that while liberalization was initially beneficial (it has also had negative social consequences) for laying the foundation for Ashanti' s growth, once the company had been successfully transformed into a multinational corporation, excessive liberalization became detrimental to further growth and rather contributed to the worst financial crisis of Ashanti in decades. The lesson drawn is that liberalization is good for the growth of private business but requires significant oversight by the state to make growth sustainable. It is my hope that the issues discussed will go a long way to contribute to the debate on Africa and the global economy and globalisation in general.