Ghana Chamber of Mines urges tax overhaul and local‑content reform

Michael Edem Akafia, president of the Ghana Chamber of Mines, called on the government to revamp the country’s local‑content framework. He argued that the policy should shift from a narrow focus on Ghanaian ownership to a broader approach that rewards manufacturing, technology transfer and capital investment, thereby adding real value to the mining sector. Akafia warned that the current rules risk creating “front‑ing” firms that merely import goods, citing the case of Tema Lube Oil Company, which faces penalties despite employing a largely Ghanaian workforce. He urged a comprehensive review to align the law with market realities and to attract foreign direct investment.

The Chamber also warned that the effective tax burden on mining companies could reach 54‑58 percent, a level that could deter investment, stall expansion and erode competitiveness. The high levy results from recent increases in the Growth and Sustainability Levy and a sliding‑scale royalty that rises with gold prices. Akafia urged the government to review the fiscal regime, propose that at least 30 percent of mineral royalties be earmarked for local community development, and pass a Mineral Revenue Management Act to govern revenue allocation. The chamber stressed that balancing state revenue with a favourable investment climate is essential for sustaining Ghana’s leading export earner.