Ghana’s slip in the Global Mining Investment Attractiveness ranking is troubling

The recent release of the Global Mining Investment Attractiveness Index reveals a troubling decline in Ghana’s position, with our country falling seven places in the global ranking of mining investment destinations, from 46th in 2024 to 53rd in 2025. More concerning is the fact that only sixty-eight (68) countries were assessed in 2025, compared with eighty-two (82) in 2024 when Ghana held the 46th position.

This development is concerning for many stakeholders in the mining industry, and as the immediate past Minister responsible for the mining sector, this decline constitutes a serious challenge to Ghana’s competitiveness and its ability to attract long-term investment in the sector. The latest Ranking positions Ghana behind other African countries such as Côte d’Ivoire, the Democratic Republic of Congo, Namibia, Zambia, Tanzania, Morocco and Botswana, indicating a relative decline in our country’s attractiveness to mining investors.

This trend is particularly troubling given the central role of the mining sector in Ghana’s economy. For decades, it has been a cornerstone of national development, contributing substantially to export earnings, foreign exchange inflows, fiscal revenues, employment, and broader economic growth.

The Global Mining Investment Attractiveness ranks jurisdictions “according to the extent that public policy factors encourage or discourage mining investment.” Ghana’s decline in this ranking, therefore, reflects a negative perception of Ghana’s public policy environment affecting mining exploration and investment. This has the potential to erode all the gains made during the eight (8) years of the Akufo-Addo administration.

Under the leadership of President Akufo-Addo, Government implemented transformational policies that positioned Ghana as the mining hub in Africa, and among the best investment destinations on the continent. These policies resulted in, among others;

• Ghana overtaking South Africa to become the leading producer of gold on the continent, with gold production hitting a record 4.9 million ounces in 2024 and generating in excess of US$10 billion in export receipts;

• the implementation of the Domestic Gold Purchase Programme which saw an increase in gold reserve from 8.77 tonnes to 30.53 tonnes in 2024;

• the construction of the first greenfield mine in more than a decade by Cardinal Namdini, which poured its first gold in October 2024;

• the construction of new mines in Ahafo and Upper West Regions by Newmont Ahafo North and Azumah Resources, respectively;

• the expansion of existing mines and the revamping of dormant mines in Obuasi and Bibiani;

• a sustained investment in exploration and exploitation of lithium;

• the construction of a 400kg gold refinery to add value to our gold resources;

• an agreement for the construction of a US$450,000,000.00 manganese refinery to add value to manganese resources;

• the construction and operationalisation of Regional Offices in Kumasi, Bole, Tamale, Wa, Bolgatanga and Tarkwa, and District Offices in Kyebi, Bibiani, Damang and Akyem Oda for the Minerals Commission to meet the demands of the expanding sector;

• the implementation of a comprehensive local content policy that increased the items on the list of goods and services reserved for local procurement from nineteen (19) in 2016 to fifty-one (51) as at January 1, 2025; and

• the implementation of a robust capacity building programme that trained over fifty (50) mining engineers in USA, UK, Canada and Australia to support the work of the Minerals Commission.

Ghana’s attractiveness to mining investment under the Akufo-Addo Government is evident in the number of mines that were under construction as at the end of 2024. This is because of the investor-friendly policies that were implemented. These policies resulted in Ghana gaining an additional 12.63 points in investment attractiveness, from 44.35 points in 2023 to 56.98 points in 2024.

It is against this backdrop of prior progress that concerns have emerged regarding the current Government’s policy direction in the mining sector. The recent decline in the investments in Ghana’s mining sector is the predictable consequence of a policy environment that has grown increasingly uncertain, interventionist and opaque.

According to the report, Ghana placed 50^th out of 68 jurisdictions on the policy perception index in the mining sector, down from 46^th out of 82 jurisdictions in 2024, with Ghana scoring very low points on uncertainty concerning the administration and enforcement of existing regulations, regulatory duplication and inconsistencies, weak legal system, taxation regime, trade barriers and socioeconomic agreements.

The Report mirrors the reality in our country. Firstly, the current fiscal and regulatory frameworks have generated uncertainty among investors and stakeholders in the mining sector. Indeed, early this year, the Ghana Chamber of Mines had cause to warn that Government’s fiscal policies “risk constraining investment expansion and may not deliver sustainable revenues over the long term.”

The recent introduction of the sliding royalty regime for the mining sector illustrates the need for careful policy calibration. While efforts to increase Ghana’s share of mining revenues are welcome, such measures must be balanced against the need for certainty and predictability in the investment environment. Clarity and predictability have always been essential to attracting the investment required in a capital-intensive industry such as mining, where projects involve substantial capital outlays and long lead times.

Equally important is the prioritisation of indigenous ownership, to ensure that the benefits of resource development are broadly shared within the country. Without a stable and transparent policy framework, even reforms intended to boost government revenues may create uncertainty that deters investment, slows project development and limits the sector’s contribution to employment, local enterprise and overall economic growth.

Secondly, the controversies surrounding the takeover of major mining establishments have amplified perceptions of regulatory inconsistency and allegations of opaque state involvement, of which the international investment community took notice.

Thirdly, since assuming office in 2025, Government has consistently signalled a policy direction which suggests an appetite for resource nationalisation. This situation has generated unease within the international investment community regarding Ghana’s mining sector

Ghana’s low score on mineral potential, also, highlights lack of geological investigations which is the lifeblood of the mining sector.

Mining capital is highly mobile. Investors assess jurisdictions based on geological potential, fiscal stability, regulatory certainty and the credibility of state institutions. Ghana’s fall in ranking reflects growing concerns across these core indicators.

It is worth underscoring that the visionary policy conceived by former Vice President Dr. Mahamudu Bawumia, particularly the Domestic Gold Purchase Programme, an initiative to strengthen our national currency through gold reserve accumulation, was premised on Ghana’s ability to retain its leadership position as a gold producer. The recent decline threatens this vision and diminishes the returns that accrue to the Ghanaian economy.

Ghana’s decline in the Global Mining Investment Attractiveness Index signals the urgent need for a recalibration of the country’s mining policies. The remarkable progress achieved under the Akufo-Addo Government, including record gold production, construction of greenfield mines,  expansion of existing mines, establishment of refineries, and strengthened institutional capacity, demonstrated that consistent, transparent, and investor-friendly policies can position Ghana as a leading mining destination in Africa.

The current trajectory, however, characterised by regulatory uncertainty, fiscal inconsistencies, opaque interventions, attempted nationalisation of mines, and insufficient geological investigations, risks eroding these gains. To restore confidence and attract long-term investment, it is recommended that Government takes the following steps:

First, design an effective tax regime for mining to ensure an investment-friendly landscape.  The current fiscal regime being implemented by Government is convoluted. It should be simplified.

Second, Government must prioritise exploration as that is the life blood of the industry. Available data indicates that not more than six mines have proven reserves that can ensure a mine life of over 15 years. The country may therefore suffer a huge decline if exploration spend is not prioritised. To give effect to this recommendation, Government may consider

1. reducing the high fiscal regime to allow producing mines to direct some of their revenues into exploration in order to extend the mine life, as well as prevent junior companies that typical carry out exploration from moving to regional peers or other jurisdictions; and/or

• more importantly, resourcing, retooling and building the capacity of the Ghana Geological Survey Authority (GGSA) through dedicated funding to undertake exploration or provide incentives to enable GGSA enter into public private partnerships to undertake comprehensive geological investigations. 

Third, Government must deal decisively with the issue of illegal mining. Apart from its environmental, health and safety hazards, illegal mining poses a major threat to investment in the mining sector. Today, almost all the gold producing mines, and practically most of the prospecting licensees have their concessions invaded by illegal mining. This menace increases the cost of doing business for investors, destroys their mineral resources and reserves, and ultimately deters them from investing in the country.

Last, Government must develop a comprehensive strategy to integrate the mining sector with downstream industries, supported by regulatory certainty and fit-for-purpose infrastructure. In this regard, technology transfer and development can offer a major pathway to economic diversification, and jettison the “dig and ship” policy for local value addition and beneficiation for long-term and broad-based economic development.

The writer is the Immediate Past Minister for Lands and Natural Resources

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.