By Hotdigitalonline Business Desk – Accra | November 2025
Ghana’s leading policy think tank, the Institute of Economic Affairs (IEA), is urging government to abolish tax incentives and review royalty rates in the mining sector to ensure the country gains fair value from its vast natural resources.
At a recent policy seminar in Accra, the IEA argued that Ghana’s current fiscal and legal framework for the extractive industry, especially under the Minerals and Mining Act, 2006 (Act 703) has become outdated and overly generous to multinational mining firms.
A Century of Mining, Limited Returns
Presenting the Institute’s findings, Dr. Eric Oduro Osae, Senior Research Fellow at the IEA, said Ghana’s mining laws no longer reflect the nation’s technical capacity or economic realities.
“Despite more than a century of mining and significant mineral endowment, the country continues to see low returns relative to the scale of resource extraction,” he stated.
According to IEA data, total mineral revenues in 2024 reached $7.1 billion, yet taxes, royalties, and dividends amounted to only GH¢17.68 billion, far below potential earnings considering extensive fiscal concessions, tax holidays, and capital flight.
Dr. Oduro Osae argued that these incentives, originally introduced when Ghana had limited local technical expertise, now unfairly advantage foreign corporations at the expense of national development.
“All these benefits, if quantified, show that we are giving away too much. We need to review the ownership structures, encourage local participation, and abolish tax incentives that no longer serve Ghana’s interest,” he said.
IEA’s Key Recommendations
The Institute proposed a comprehensive overhaul of Ghana’s extractive fiscal regime, including:
- Abolishing tax waivers and redundant investment incentives for mining firms.
- Reviewing and potentially raising royalty rates, currently capped at 5%, to align with resource value.
- Strengthening local ownership and participation frameworks.
- Anchoring dispute resolution mechanisms within Ghana’s judicial system to ensure sovereignty in legal arbitration.
- Improving transparency and accountability in how mining revenues are mobilized and spent.
Dr. Oduro Osae added that working collaboratively with mining companies to increase production and efficiency could balance fairer taxation with investment growth.
Former Chief Justice Joins the Call
Also speaking at the event, Former Chief Justice Sophia Akuffo echoed the IEA’s call for reform, describing Ghana’s extractive regime as “skewed and outdated.”
“Natural resources continue to anchor our economy, but the benefits remain uneven. Unless we change the fiscal and legal framework, Ghana will continue to gain less from its own wealth,” she said.
Justice Akuffo proposed a National Conference on Natural Resources to build consensus on new strategies that maximize returns and ensure long-term sustainability.
Why It Matters for Ghanaians at Home and Abroad
For Ghanaians everywhere from mining towns in Tarkwa and Obuasi to the diaspora communities financing local investments the debate over fair resource management goes beyond policy. It affects job creation, public services, and how much of Ghana’s natural wealth stays within the country.
With mining remaining one of Ghana’s largest foreign exchange earners, experts say reviewing royalty rates and tax structures is not just economic reform, it’s about fairness, sovereignty, and national pride.
Hotdigitalonline Reflection
Ghana’s gold, bauxite, and manganese have long been the backbone of its economy. Yet, after decades of extraction, the people’s share remains small.
The IEA’s call for reform is not a rejection of investment, it’s a call for balance: between openness and ownership, between profit and purpose.
If acted upon, these reforms could redefine how Ghana manages its resources — transforming mining from a story of loss into one of legacy.
Tags: #IEA #MiningReform #GhanaEconomy #EricOduroOsae #SophiaAkuffo #GhanaToTheWorld #Hotdigitalonline
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