Delay in cutting mining levy could weaken Ghana’s investment appeal — Patrick Boamah

The Member of Parliament for Okaikoi Central, Patrick Yaw Boamah, has called on the government to fulfil its commitment to reduce the Growth and Stabilisation Levy from 3 percent to 1 percent, warning that delays in implementing the pledge could negatively affect investment in Ghana’s mining sector.

According to him, the promise to reduce the levy was made during consultations between government and stakeholders in the mining industry. However, he said the commitment has yet to be honoured even though changes to the levy were expected to take effect this year.

Mr. Boamah cautioned that the delay could influence investor confidence and potentially discourage new investments in the sector, particularly as new regulatory measures are being introduced.

He explained that concerns within the mining industry have already been documented in a report commissioned by the private sector and prepared by the consulting firm Ernst & Young. The report, he noted, outlines apprehension among industry players regarding the implications of the current fiscal framework.

According to him, the findings highlight possible consequences such as reduced investment inflows and the risk of job losses if the fiscal pressures on mining companies persist.

Mr. Boamah further argued that Ghana’s existing tax and royalty structure for mining companies already places the country among the most heavily taxed jurisdictions globally.

He warned that maintaining such a high fiscal burden could make Ghana less competitive compared to other mining destinations.

The lawmaker said the issue was raised during deliberations at the parliamentary committee level when officials from the Finance Ministry were invited to discuss matters affecting the sector.

During those engagements, he said, the mining industry was given firm assurances that the Growth and Stabilisation Levy would be reduced to 1 percent.

“However, as we speak, nothing has been done. That situation is creating uncertainty within the industry and partly explains why the mining community commissioned the Ernst & Young report,” he said.

Mr. Boamah stressed that government must take the concerns of mining companies seriously, especially as it encourages greater local participation in the sector.

He noted that some major mining leases are expected to expire later this year, with hopes that Ghanaian investors may take over the operations.

However, he cautioned that the mining industry is highly capital-intensive and requires substantial financing, which could become difficult to secure under an unfavourable fiscal regime.

“If local investors take over such assets but are unable to raise the required capital due to the prevailing fiscal conditions, it could affect the sustainability of the sector,” he said.

He therefore urged authorities to establish a supportive fiscal framework that will enable mining companies to thrive, protect jobs and contribute meaningfully to economic growth.

Mr. Boamah also referenced Ghana’s declining performance in global mining investment rankings compiled by the Fraser Institute.

According to the institute’s Mining Investment Survey, Ghana ranked 46th out of 82 jurisdictions in 2024 but dropped to 53rd out of 68 jurisdictions in 2025.

Under the Policy Perception Index, Ghana also slipped from 46th position out of 82 countries in 2024 to 50th out of 68 in 2025.

Similarly, in the Best Practices Mineral Potential Index, the country ranked 34th out of 58 jurisdictions in 2024 but declined to 35th out of 41 in 2025.

Mr. Boamah said the rankings suggest that mining investments are gradually shifting to other countries such as Peru, Colombia, South Africa, Côte d’Ivoire and Mali.

He therefore urged the government to adopt deliberate strategies to ensure Ghana remains competitive and attractive to mining investors.

The MP further argued that authorities have not introduced adequate measures to cushion mining companies against the combined impact of recent fiscal adjustments.

“You cannot increase the royalty regime through a sliding scale while failing to implement measures that will help mitigate the burden on mining companies,” he added.