Mining sector flooded with investors; explore other revenue sources

Economist Prof. Patrick Asuming has called on the government to shift its revenue focus away from Ghana’s already investor-saturated mining sector, suggesting a broader, more diversified fiscal strategy. His comments come amid growing tensions between the government and opposition lawmakers over the direction of mining policy and recent tax reforms.

Speaking on the issue, Prof. Asuming warned that the sector no longer requires additional fiscal attention or incentives, as it continues to attract significant investment without them. “The mining industry is not lacking investor interest,” he noted. “The government should be looking elsewhere for sustainable revenue sources.”

His remarks follow a strong reaction from the Minority in Parliament, who in a letter dated April 21, 2025, addressed to both the Ministers for Finance and Lands, expressed deep concern over recent government measures affecting the mining sector. The Minority described two newly introduced tax policies—most notably the 3% Growth and Sustainability Levy—as “potentially dire,” warning that they place further strain on mining firms already grappling with operational challenges.

According to the Minority, such measures risk deterring future investment and could ultimately lead to job losses in a sector that remains a critical pillar of the Ghanaian economy.

In their petition, the Minority also took issue with the recently passed GOLDBOD Act, which bans foreign entities from participating in gold trading and export. They argued that the Act is not only unconstitutional but also sends a dangerous signal to international investors. “The move undermines investor confidence at a time when the country needs foreign capital the most,” the statement read.

Adding to the list of grievances, the opposition also criticized the government’s decision not to renew the lease for Goldfields Ghana, calling it a missed opportunity for renegotiation rather than exclusion. The letter emphasized that the government could have secured more favorable terms to benefit the state, rather than closing the door entirely on one of the country’s key mining operators.

Perhaps most alarming was the Minority’s claim that 80% of the Minerals Income Investment Fund (MIIF) has been defunded, which they described as a strategic blunder. “This signals a retreat from Ghana’s stake in its own mineral wealth,” the statement warned, suggesting that such actions threaten long-term national interests.

The Minority also linked a recent deadly attack on a mining site to what they called “hostile political rhetoric,” expressing frustration over the lack of meaningful progress in the ongoing investigation. They described the situation as “yet another blow to investor trust.”