Ghana’s Parliament has approved amendments to the Growth and Sustainability Levy aimed at creating a fairer fiscal framework that maximizes the country’s benefits from its natural resource wealth while maintaining a competitive investment environment for mining companies.
The Growth and Sustainability Levy (Amendment) Bill, 2026, passed on Friday, March 14, 2026, reduces the levy imposed on gold mining companies from three percent to one percent of gross production, following the introduction of a new royalty regime designed to capture greater value for the state when global gold prices rise.
Government officials say the changes are part of a broader effort to recalibrate Ghana’s fiscal regime for the mining sector to ensure that the country secures a stronger share of revenues from its mineral resources without undermining investor confidence.
The amendment follows the introduction of the Minerals and Mining Royalty Regulations, 2025, which establish a sliding-scale royalty system linked directly to international gold prices.
Under the new framework, royalty payments will automatically increase when global gold prices rise, allowing the state to capture higher revenues during periods of strong commodity markets.
Moving the motion for the second and third readings of the bill, Deputy Minister for Finance Thomas Nyarko Ampem explained that the earlier decision in 2025 to raise the Growth and Sustainability Levy from one percent to three percent was intended to compensate for the absence of a windfall tax mechanism in the mining sector.
However, he noted that the newly introduced royalty framework now fills that gap.
According to him, the sliding-scale royalty structure allows Ghana to progressively increase its share of mining revenues as gold prices climb.
Under the system, when gold prices hover around $1,900 per ounce, the royalty rate stands at five percent. The rate increases to six percent when prices rise to between $1,900 and $2,000, and could reach as high as 12 percent if prices exceed $4,500 per ounce.
Mr. Ampem told Parliament that the revised framework ensures Ghana benefits more from its natural resources during periods of high commodity prices while still providing fiscal certainty for mining investors.
“We do not make laws to favour individuals or particular companies. The objective is to create a framework that enables Ghana to take maximum advantage of its natural resources,” he said.
He emphasized that the new fiscal arrangement is intended to strike a careful balance between fair returns for the state and a stable, predictable environment for mining operations.
“For many years, the country has not captured enough value from its mineral wealth. This new arrangement seeks to ensure fairness both to mining companies and to Ghanaians who are the ultimate owners of these resources,” he added.
Despite the government’s assurances, the Minority Caucus in Parliament has expressed reservations about the potential impact of the reforms on the mining sector.
Minority members warned that elements of the new royalty framework introduced through the Legislative Instrument could affect investor confidence if not carefully managed.
They cautioned that sudden changes in the fiscal regime could make Ghana less attractive as a mining destination and potentially threaten jobs in the sector if companies decide to scale back operations.
Ghana remains one of Africa’s leading gold producers, with the mining industry playing a critical role in the national economy through export earnings, government revenues, and employment.
The newly approved fiscal adjustments are therefore expected to shape the future balance between resource nationalism and investment competitiveness in the country’s extractive sector.
Source: Clement Akoloh||parliamentnews360.com
