Ghana Chamber of Mines Demands Complete Removal of Growth and Sustainability Levy
The Ghana Chamber of Mines has called for the total elimination of the Growth and Sustainability Levy on mining companies, arguing that the tax makes the country less competitive for long-term investment and places an excessive fiscal burden on an industry that contributed over GHS 22.22 billion in revenue last year.
Speaking at the Chamber’s 98th Annual General Meeting in Accra, Chief Executive Officer Dr Kenneth Ashigbey said the industry body had already secured a reduction of the levy to one per cent in 2026, down from three per cent, with a government commitment to phase it out entirely by 2028. But the Chamber maintains that the levy should be brought to zero immediately.
Through ongoing, evidence-based talks with government and stakeholders, we secured a reduction in the GSL to one per cent in 2026 and a commitment to phase it out by 2028. We still believe it should be reduced to zero and continue to push for its removal, Dr Ashigbey said.
The Growth and Sustainability Levy was introduced through the Growth and Sustainability Levy Act, 2023 (Act 1095) as a revenue-raising measure to support economic recovery following the COVID-19 pandemic and subsequent global economic pressures. It began as a one per cent levy in 2023 but was increased to three per cent in 2024, separate from royalties, corporate tax, and other statutory obligations.
Dr Ashigbey described the push for the levy’s removal as part of a broader campaign against what the Chamber views as excessive fiscal burden on Ghana’s mining sector. Policy stability, he argued, is vital for competitiveness, investment, and long-term planning in an industry that supports more than 13,819 direct jobs and sustains significant merchandise exports.
The immediate past President of the Chamber, Michael Edem Akafia, painted a stark picture of the cost pressures facing the sector. He noted that the combined effect of the revised royalty regime, corporate income tax, and other statutory imposts was pushing Ghana’s effective tax burden on mining to an estimated 54 to 58 per cent. The debate over how much value Ghana retains from its mineral wealth has intensified in recent months, with calls for reform growing louder across the industry.
This places Ghana among jurisdictions with the highest effective tax burdens on mining globally, with implications for competitiveness, project economics, mine-life extension, and exploration. The Chamber therefore urges government to undertake a holistic review of the mining fiscal regime, Mr Akafia said.
Beyond the levy, the industry navigated a challenging 2025 marked by geopolitical tensions, inflation, supply chain disruptions, energy volatility, and growing climate obligations. Despite these headwinds, the large-scale mining sector demonstrated resilience, generating over GHS 22.22 billion in revenue. The industry also sustained local procurement spending of $4.20 billion and community development expenditure of $88.60 million, while contributing to foreign exchange generation through the Domestic Gold Purchase Programme.
Lands and Natural Resources Minister Emmanuel Armah-Kofi Buah acknowledged the sector’s strategic importance, describing mining as the heartbeat of Ghana’s economy and a primary driver of foreign exchange earnings. He told the gathering that government was advancing reforms to improve regulatory certainty and operational efficiency, including an ongoing review of the Minerals and Mining Act 703 and the National Mining Policy, both of which are before Cabinet.
The Minister pledged that any reforms would follow broad stakeholder consultation to build national consensus around sustainable mining transformation, while balancing the interests of investors, the state, and local communities.
Image Source: GHANA BUSINESS NEWS
