The Ghana Chamber of Mines is calling on the government to eliminate the Value Added Tax (VAT) on mineral exploration activities, arguing that the tax poses a significant barrier to discovering new mineral deposits and sustaining long-term production.

Speaking at the Chamber’s 97th Annual General Meeting held in Accra on May 30, 2025, President of the Chamber, Michael Edem Akafia, emphasized that exploration is central to the future of Ghana’s mining industry.

“Exploration is the lifeblood of mining. It is the single most critical activity that guarantees continued mineral production,” Akafia stated. He warned that taxing exploration-related expenses discourages investment in new discoveries and threatens the replenishment of Ghana’s mineral reserves.

According to Akafia, the VAT burden undermines the country’s efforts to attract global investment, particularly at a time when Ghana is working to solidify its position as a leading mining hub in Africa.

The Chamber is advocating for a more favorable tax regime to stimulate exploration, especially given the increasingly cautious global investment climate. Akafia noted that while countries like South Africa and Morocco have seen a rise in exploration budgets due to supportive policies, many West African nations—including Ghana—have experienced reductions in exploration spending as a result of regulatory and investment hurdles.

He stressed that incentivizing exploration is essential to maintaining a strong pipeline of mining projects and ensuring the industry’s long-term viability.