Ghana mineral exploration tax reform aims to boost sector investment

Ghana has announced a mining assemblage taxation betterment abolishing value-added taxation (VAT) connected mineral exploration and reconnaissance activities successful a bid to pull greater investment.

The move, revealed by the country’s Finance Minister, Cassiel Ato Forson, comes arsenic Ghana, Africa’s starring bullion producer, seeks to reverse much than 2 decades of constricted caller mining development, reported Reuters.

The 15% VAT was introduced 25 years agone arsenic portion of wider fiscal reforms, and was applied to exploration-related expenses specified arsenic drilling and assay work.

This accrued upfront costs for companies operating successful the high-risk aboriginal phases of mining projects.

Industry groups including the Ghana Chamber of Mines person argued that the taxation discouraged greenfield concern and undermined Ghana’s competitiveness compared to countries similar Ivory Coast, Burkina Faso and Kenya, wherever exploration is exempt from VAT.

During the 2026 fund presentation, Ghana Finance Minister Cassiel Ato Forson said: “Abolishing VAT volition revive capitalist confidence, stimulate greenfield enactment and guarantee the semipermanent sustainability of the country’s mining sector.”

Forson added that the measure, portion of a broader VAT review, is intended to beforehand liable mining and curb unregulated prospecting, which has degraded forests and waterways.

The argumentation alteration follows grounds small-scale golden exports from Ghana betwixt January and October.

According to Finance Ministry data, shipments jumped to 81.7 tonnes (t), worthy astir $8.1bn (88.9bn cedis), surpassing large-scale exports of 74.1t valued astatine $6.6bn for the archetypal time.

Ghana targeted full golden output of astir 144.5t successful 2025.

Forson further added that the surge reflects the interaction of caller regulatory reforms that person formalised artisanal mining and tightened export controls.

The Ghana Chamber of Mines besides welcomed the government’s determination to region VAT connected exploration.

Ghana Chamber of Mines president Michael Akafia told Reuters: “VAT connected exploration negatively affected our competitiveness arsenic a mining jurisdiction and was a clog connected the pipeline of projects.”

Ghana’s mining manufacture generates much than one-third of the country’s export revenues, dominated by golden alongside bauxite and manganese.

The authorities initiated an audit this period arsenic portion of wider reforms aimed astatine expanding net from the industry.

Major operators successful Ghana see Newmont, AngloGold Ashanti, Gold Fields, Perseus, and China’s Zijin and Cardinal Namdini.

"Ghana mineral exploration taxation betterment aims to boost assemblage concern " was primitively created and published by Mining Technology, a GlobalData owned brand.