By Francis Ntow, GNA
Accra, June 9, GNA – The Ghana Chamber of Mines has called for the elimination of the Growth and Sustainability Levy on mining companies, a move they say will make the country more attractive for long-term mining investment and ease fiscal pressures on firms.
The call comes on the back of the Chamber securing a two per cent reduction from the Government on the three per cent fiscal levy imposed on mining companies.
Introduced through the Growth and Sustainability Levy Act, 2023 (Act 1095), the levy was to raise revenue for economic recovery and to support national development after the COVID-19 pandemic and the global economic pressures at the time.
It came as a one per cent levy in 2023 but was increased to three per cent in 2024 – separate from royalties, corporate tax, and other taxes, leading to calls that subsequently saw the government go back to the original one per cent in 2026.
However, Dr Kenneth Ashigbey, the Chief Executive Officer (CEO) of the Chamber of Mines, during the organisation’s 98th Annual General Meeting in Accra, raised concerns about the impact of the levy on costs and investment in the mining sector.
“Through ongoing, evidence-based talks with government and stakeholders, we secured a reduction in the GSL to one per cent in 2026 and a commitment to phase it out by 2028. We still believe it should be reduced to zero and continue to push for its removal,” he said.
Dr Ashigbey explained that the push for the levy removal formed part of a broader Chamber campaign against “excessive fiscal burden” on Ghana’s mining sector, noting that policy stability was vital for competitiveness, investment, and long-term planning.
Reflecting on the mining industry’s performance in 2025, he touched on both challenges and opportunities, highlighting their role in ensuring that the country advanced its development objectives while sustaining its attractiveness to investors.
He said the industry navigated geopolitical tensions, inflation, supply chain issues, energy volatility, and climate obligations, while debate grew about the value retained by host countries.
“Despite these headwinds, Ghana’s large-scale mining sector remained resilient. It contributed over GHS22.22 billion in revenue and supported more than 13,819 direct jobs,” he said.
Dr Ashigbey said the industry also sustained merchandise exports, foreign exchange generation through the Domestic Gold Purchase Programme, infrastructure investment, with local procurement spending US$4.20bn and community development spending of US$88.60 million.
The immediate past President of the Chamber, Michael Edem Akafia, pointed to cost pressures in 2025, including the GSL and sharp appreciation of the Cedi, as well as elevated input costs, partly linked to geopolitical tensions in the Middle East.
He noted that the combined effect of the revised royalty regime, corporate income tax, and other statutory imposts was pushing Ghana’s effective tax burden on mining to an estimated between 54 to 58 per cent.
“This places Ghana among jurisdictions with the highest effective tax burdens on mining globally, with implications for competitiveness, project economics, mine-life extension, and exploration. The Chamber, therefore, urges Government to undertake a holistic review of the mining fiscal regime,” Mr Akafia said.
Emmanuel Armah-Kofi Buah, the Lands and Natural Resources Minister, acknowledged the sector’s strategic importance, describing mining as the heartbeat of Ghana’s economy and a primary driver of foreign exchange earnings.
He told the gathering that the Government was advancing reforms to improve regulatory certainty and operational efficiency, including the ongoing review of the Minerals and Mining Act 703 and the National Mining Policy, which were before Cabinet.
He pledged the Government’s resolve to balance the interests of investors, the State, and local communities, noting that any reforms would follow broad stakeholder consultation to build national consensus around sustainable mining transformation.
GNA
Edited by Agnes Boye-Doe
Reporter: Francis Ntow