Chief Executive Officer of the Ghana Chamber of Mines, Ken Ashigbey, has cautioned that Ghana risks losing its leading position in gold production if current mining tax policies continue to discourage investors.
Speaking on Joy News’ PM Express Business Edition on Thursday, Mr. Ashigbey said Ghana’s fiscal regime is becoming increasingly uncompetitive compared to other mining destinations in West Africa.
According to him, the country is already operating near the upper threshold of the International Monetary Fund’s recommended revenue-sharing framework between governments and mining investors.
He explained that the burden on mining companies becomes even more severe when gold prices decline, as the state’s share of mining revenues could rise above 60 per cent, significantly reducing profitability for investors.
Mr. Ashigbey warned that under such conditions, mining firms are more likely to redirect capital toward neighbouring countries offering more favourable fiscal terms.
He specifically pointed to Côte d’Ivoire and other regional competitors that currently maintain lower government take rates within their mining sectors.
According to him, at least one mining company recently shifted investment funds originally intended for Ghana into Côte d’Ivoire because of concerns surrounding Ghana’s royalty structure and broader tax environment.
The Chamber of Mines CEO criticised the increase in royalty rates from 5 per cent to a variable range of between 5 and 12 per cent, arguing that the adjustment has substantially increased production costs for mining operators.
He noted that Ghana previously benefited from its stable democratic environment and investor-friendly incentives introduced under Act 703, factors that historically helped attract significant mining investment.
However, Mr. Ashigbey said competing countries are rapidly adopting similar investment strategies while offering more attractive fiscal conditions.
He highlighted Côte d’Ivoire’s growing ambitions within the mining industry, noting that the country aims to become Africa’s leading gold producer within the next decade.
As part of this shift, he referenced Endeavour Mining as an example of a major operator that has increasingly focused attention on Côte d’Ivoire following significant gold discoveries there in recent years.
Mr. Ashigbey also identified Guinea as another emerging competitor in the regional mining sector, stressing that Ghana does not possess exclusive geological advantages.
He therefore urged the government to urgently review its fiscal and royalty policies to ensure Ghana remains competitive and does not continue losing mining investment opportunities to neighbouring countries.
