Government moves to triple mining levy to boost revenue and economic growth

Presenting the national budget to Parliament on Tuesday(11 March), Finance Minister Dr Cassiel Ato Forson expressed concern over Ghana’s inability to fully leverage its vast natural resource wealth for economic development.

He noted that while natural resource rent—the difference between a commodity’s revenue and its production cost—accounts for approximately 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 bridge this gap, the government is proposing an increase in the Growth and Sustainability Levy on gross mining production. The new 3% rate is designed to ensure the country secures a fair share of the windfall from rising gold prices.

The proposal is expected to generate substantial revenue to support national development, infrastructure projects, and economic diversification efforts.

With Ghana’s economy facing significant challenges, the move underscores a strategic shift towards maximizing returns from natural resources to drive sustainable growth.

Parliament is set to deliberate on the proposal in the coming weeks.