Parliament has approved amendments to the Growth and Sustainability Levy (Amendment) Act, 2026, significantly reducing the levy imposed on gold mining companies in a move aimed at stabilising the sector following sweeping changes to the country’s mineral revenue framework.
Under the revised law, the levy on mining firms will drop from 3 percent of gross production to 1 percent, a reduction government officials say is necessary to offset the financial burden created by newly introduced royalty rules.
The decision comes in response to concerns that recent regulatory reforms, particularly the Minerals and Mining Royalty Regulations, 2025, could raise operational costs and discourage investment in one of Ghana’s most critical economic sectors.
New royalty system reshapes mining landscape
The 2025 regulations introduced a sliding-scale royalty structure, replacing the previous fixed regime. Under the new system, royalty payments will increase when global gold prices surge and decrease when prices fall.
Government officials argue that this mechanism allows the state to capture a greater share of windfall profits during commodity booms while maintaining flexibility during downturns.
Ghana, Africa’s leading gold producer and one of the world’s top exporters of the precious metal, relies heavily on mining revenues for foreign exchange earnings, employment and infrastructure financing.
Despite the government’s assurances, the Minority Caucus has strongly criticised the broader policy changes, warning that the new royalty framework could have unintended economic consequences.
Opposition lawmakers argue that the regulations may deter new investments, slow expansion projects, and threaten jobs across the mining value chain, from extraction to logistics and local supplier industries.
The Chairman of Parliament’s Subsidiary Legislation Committee, Patrick Yaw Boamah, claimed the measures could jeopardise up to one million jobs, particularly in mining communities where the sector serves as the backbone of local economies.
Industry analysts note that large-scale mining operations support not only direct employment but also thousands of ancillary jobs in transport, equipment supply, catering and security services.
Government defends levy reduction
Responding to the concerns during parliamentary deliberations, Deputy Finance Minister Thomas Nyarko Ampem explained that the levy reduction is designed specifically to cushion companies against the financial impact of the new royalty regime.
“We don’t make laws to suit individuals. We are bringing this change so that Ghana can take maximum advantage of its natural resources. We all know that we have been blessed with gold.
“Over the years, we haven’t taken enough advantage of this resource. This arrangement will make it fair to mining companies, and it will also make it fair to Ghanaians who are the owners of this natural resource,” he said.
According to the Deputy Minister, the adjustment reflects a balancing act between protecting national interests and maintaining a competitive investment environment.
Gold remains Ghana’s single largest export commodity, generating billions of dollars annually and serving as a crucial source of foreign exchange.
The sector has become even more important in recent years as global economic uncertainty and geopolitical tensions drive investors toward gold as a safe-haven asset, pushing prices upward.
Government officials say reforms are intended to ensure that Ghana benefits more equitably from rising prices while preserving the long-term viability of mining operations.
Economists say the twin policy approach, higher potential royalties during price booms combined with a lower production levy, reflects an attempt to reconcile competing priorities: maximising state revenue without undermining investor confidence.
Mining companies typically make investment decisions based on long-term projections of fiscal stability. Sudden or unpredictable changes in tax regimes can delay new projects or redirect capital to competing jurisdictions.
By reducing the levy while introducing flexible royalties, authorities hope to maintain Ghana’s attractiveness as a mining destination while ensuring that citizens receive a fair share of resource wealth.
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Source: www.myjoyonline.com
