The government has announced plans to increase the Growth and Sustainability Levy on mining companies from 1% to 3%, a move aimed at ensuring Ghana reaps greater benefits from its extractive sector.
Presenting the budget to Parliament, the Finance Minister, Cassiel Ato Forson lamented that Ghana has failed to fully capitalize on its vast natural resource wealth to drive economic development.
He noted that while natural resource rent—the difference between a commodity’s revenue and its production cost—accounts for about 14% of GDP, revenue from the extractive industry contributes only 1.5% of GDP.
“Despite the global surge in gold prices, Ghana has not been able to take full advantage of this development. We have failed to fully capture the economic rent of our natural resources,” the Minister stated.
To address this gap, the government is proposing the increase in the Growth & Sustainability Levy on gross mining production. The new rate, set at 3%, is intended to ensure that the nation gets its fair share of the windfall from rising gold prices.
The proposal is expected to generate significant revenue to support development, infrastructure, and economic diversification.
With Ghana’s economy under pressure, the move signals a shift towards maximizing returns from natural resources to fuel sustainable growth.
Parliament is expected to deliberate on the proposal in the coming weeks.
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