Insights From the Big 4:
Policy insights and recommendations
“In terms of fiscal rights, our mining regime is very comparable to other countries in West Africa. Ghana’s mining tax rate is 35%, but a number of the mining companies have special agreements with the government to pay reduced rates. Something that I doubt many countries in the sub-region have is the number of different stability and development agreements which Ghana offers to give companies room to operate through certain exemptions. Unlike other countries, Ghana does not claim an export tax. Finally, the Ghanaian Minerals and Mining Act stipulates a range of between 3 to 6% with 6% maximum royalty rate, whereas other countries charge a lot more on precious minerals.”
Kofi Frempong-Kore, Partner, Tax & Lead - Energy and Natural Resources, KPMG Ghana
“In 2022, the government intends to increase the list of locally procured items on the Local Content Procurement list from 29 to 34 in order to ensure that the benefits of mining are retained for socio-economic growth and development of the localities. In terms of local content, mining companies worry about the shortcomings of local enterprises with regards to product and service quality, quantity and timelines. The Chamber of Mines is partnering with the Ghana Standards Authority to improve the quality of locally produced goods. These measures are expected to help the industry reap the benefits of tighter local content laws.”
Priscilla Koranteng-Gyasi, Partner, Ernst & Young Ghana
“One of the key challenges is the issue of illegal small-scale mining. In some instances, Galamsey have encroached on the concessions of companies engaged in large scale mining, which tends to deprive mining companies of the opportunity to exploit their concessions fully. Also, informal mining creates significant damage to water bodies and farmlands. While the current intervention programs of the Government are yielding some positive results, it is imperative that the Government does not relent in its efforts to make this practice more responsible and safer.”
George Ankomah, Lead Tax Partner and Energy, Resource & Industrials (ER&I) Leader , Deloitte Ghana
“If we think about the direct contribution of mining in taxes and royalties, the government has implemented new guarantee clauses requiring mining companies to pay an annual guaranteed dividend to the government whether they make progress or not, something which was not stipulated in the past. In the last budget statement, the minister made reference to the need for tax audits within the extractive industries to make sure that mining companies are compliant with the law.”
George Arhin, Partner and PwC West Africa Mining Leader
