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Ghana Halves Gold Mining Levy to Attract Investment

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  Published in Business and Finance on Monday, February 9th 2026 at 4:25 GMT by Ghanaweb.com
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Accra, Ghana - February 9th, 2026 - Ghana's government announced today its intention to significantly reduce the levy on gold mining operations, a move officials hope will reignite investment in a sector crucial to the nation's economic health. The current 10% windfall tax is slated to be halved to 5%, forming a cornerstone of a wider initiative designed to address growing concerns about the cost of doing business within the country and stem the outflow of mining capital.

Finance Minister Ken Ofori-Atta articulated the rationale behind the policy shift, stating that Ghana has reached a critical juncture where its economic environment is proving uncompetitive. "We are at a point where the cost of doing business in Ghana is simply too high, and if we don't make it more attractive, then we can't expect any level of investment," he explained during a press conference earlier today. While details of the broader package remain forthcoming, the tax reduction signals a clear commitment to fostering a more investor-friendly climate.

The decision comes after sustained pressure from mining companies operating within Ghana, many of whom have expressed frustration with the existing tax burden. Reports suggest that several firms have either scaled back operations or actively considered relocating to jurisdictions with more favorable regulatory frameworks. This potential exodus presented a tangible threat to Ghana's gold production and, consequently, its export revenue.

Ghana has long been a prominent gold producer in Africa, and the mining sector consistently ranks among the top contributors to the country's GDP. Gold exports account for a substantial portion of Ghana's foreign exchange earnings, fueling economic growth and supporting employment. However, recent years have witnessed a slowdown in investment and production, attributed to a combination of factors, including escalating costs, regulatory uncertainties, and the aforementioned tax regime.

The 5% levy is intended to stimulate exploration activities, particularly for smaller and medium-sized mining companies. These entities often operate on tighter margins and are disproportionately affected by high tax rates. Increased exploration is expected to lead to the discovery of new deposits, boosting future gold production and creating long-term economic benefits. Large-scale miners are also expected to benefit, allowing for reinvestment in existing operations, modernization of equipment, and enhanced sustainability practices.

However, the proposed tax reduction isn't without its critics. Concerns are being raised about the potential impact on government revenue, particularly as Ghana grapples with existing budgetary constraints and debt obligations. Opponents argue that the government may need to identify alternative revenue streams to offset the loss from the reduced levy. Economists at the Bank of Ghana are currently modeling various scenarios to assess the fiscal implications of the policy change.

Dr. Ama Serwaa, a leading economic analyst at the University of Ghana, commented on the situation. "While attracting investment is paramount, it's crucial to strike a balance between incentivizing the private sector and ensuring sufficient government revenue to fund essential public services. The government needs to demonstrate that this tax reduction will ultimately lead to higher overall revenue through increased gold production and economic activity."

The government is expected to present a detailed plan outlining how it intends to address these concerns and maximize the benefits of the revised mining levy. This plan is expected to include provisions for increased transparency and accountability in the mining sector, as well as measures to ensure that local communities benefit from mining operations. A renewed focus on environmental protection and responsible mining practices is also anticipated.

The success of this initiative will depend not only on the tax reduction itself but also on the implementation of complementary policies that address broader issues affecting the mining sector, such as infrastructure development, access to finance, and regulatory simplification. The coming months will be critical in determining whether this bold move can truly revitalize Ghana's gold mining industry and secure its position as a leading gold producer in Africa.