Delay in mining levy cut risks denting investment appeal – MP

The Member of Parliament for Okaikoi Central, Patrick Yaw Boamah, has urged the government to honour its pledge to reduce the Growth and Stabilisation Levy from 3 percent to 1 percent, warning that failure to do so could undermine investment in Ghana’s mining sector.

According to Mr. Boamah, the commitment was made by the government during engagements with industry stakeholders. However, he says the government has yet to act on the promise despite the levy changes scheduled to take effect this year. “This is likely to affect investment into the sector one way or another this year, particularly with the new regulation coming into force,” he said.

Mr. Boamah noted that concerns from the mining industry had already been captured in a report commissioned by the private sector and prepared by Ernst & Young. According to him, the report highlighted apprehension within the industry about the potential consequences of the current fiscal regime. “The report clearly outlines the possible impact on the mining sector, including anticipated job losses and the potential decline in investment,” he said.

He added that Ghana’s current fiscal framework for mining already places the country among the most heavily taxed jurisdictions in the sector. “If you look at the royalties and fiscal regime in the mining sector, Ghana ranks among the highest globally. When that happens, it signals that we are becoming less attractive to mining investors,” he said.

Mr. Boamah said the issue had been raised during deliberations in Parliament’s committee engagements with government officials. “At the committee level we invited the Finance Minister, who was ably represented. A clear assurance was given to the mining community that the Growth and Stabilisation Levy would be reduced to 1 percent. As we speak, nothing has happened,” he said. “That raises concerns within the industry and partly explains why the mining community commissioned the Ernst and Young report.”

He stressed that government must take the concerns of mining companies seriously, particularly at a time when authorities are encouraging greater local participation in the sector. “I believe government needs to take the mining community seriously, especially when it wants to encourage local investors to take over some major mining assets whose leases may expire at the end of the year,” he said.

“Mining is a highly capital-intensive sector. If a Ghanaian investor takes over such an asset but cannot raise the required financing because of an unfavourable fiscal regime, the sector will suffer. We must therefore put in place the right fiscal framework to support mining companies, protect jobs and grow the economy.”

Mr. Boamah also cited Ghana’s declining position in global mining rankings compiled by the Fraser Institute. According to the institute’s mining investment survey, Ghana ranked 46th out of 82 jurisdictions in 2024 but slipped to 53rd out of 68 countries in 2025.

In the Policy Perception Index, Ghana ranked 46th out of 82 countries in 2024 and declined to 50th out of 68 in 2025. Under the Best Practices Mineral Potential Index, the country ranked 34th out of 58 jurisdictions in 2024 and 35th out of 41 in 2025. “These numbers show that mining investment is increasingly moving to other jurisdictions such as Peru, Colombia, South Africa, Côte d’Ivoire and Mali,” he said. “Ghana therefore needs a more deliberate strategy to remain competitive and attract investment into the sector.”

He further argued that government has not introduced any meaningful measures to cushion mining companies against the cumulative effects of recent fiscal changes. “You cannot, on one hand, increase the royalty regime through a sliding scale and, on the other hand, fail to introduce measures that will mitigate the impact on the companies,” he said.

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