The mining industry has strongly opposed the government’s decision to increase the Growth and Sustainability Levy (GSL) from one percent to three percent on gross production, warning that the move could severely impact investor confidence and the sector’s long-term stability.
The increase, announced by Finance Minister Dr. Cassiel Ato Baah Forson during the 2025 Budget Statement presentation to Parliament, will extend the levy until 2028.
The decision has left industry leaders frustrated, with many claiming they received little advance notice and no meaningful consultation.
Sulemana Koney, Chief Executive Officer (CEO) of the Ghana Chamber of Mines, has criticized the government’s approach, emphasizing that the industry was caught off guard by the policy shift.
“What concerns me most is the lack of consultation. I am aware of companies actively seeking investors to expand their operations and take advantage of high gold prices.
“Some of these investors had even approached me, yet without warning, the government introduces a policy like this.”
Sulemana Koney, Chief Executive Officer (CEO) of the Ghana Chamber of Mines
Mr. Koney noted that the government had initially indicated only a marginal increase in the levy. The decision to triple it, he said, is a drastic shift that could deter both existing and prospective investors.
“We understand the economy is struggling, but should the burden fall disproportionately on businesses that are already contributing through various taxes and levies?”
Sulemana Koney, Chief Executive Officer (CEO) of the Ghana Chamber of Mines
The industry was further surprised because President John Dramani Mahama, during a speech at the National Economic Dialogue, had hinted at a one percent adjustment. Instead, the levy has been increased threefold.
The finance minister defended the government’s decision, arguing that Ghana has not sufficiently benefited from its mineral resources.
He pointed out that while natural resource rent accounts for about 14 percent of gross domestic product (GDP), revenue from the extractive sector contributes only 1.5 percent of GDP.
The Minister also noted that despite the significant increase in global gold prices, Ghana has not been able to maximize its share of the benefits.
Mining Industry Warns of Investment Risks
Beyond the immediate financial burden, mining executives warn that the unpredictability of government policies could create an unstable business environment.
The new levy applies to revenue before cost deductions, meaning that it could significantly impact profitability, making Ghana a less attractive mining investment destination. “Investors need stability and predictability,” Mr. Koney emphasized.
“Ghana has long been known for political stability and smooth transitions of power, but uncertainty in fiscal policies undermines that advantage.
“When businesses cannot plan long-term due to abrupt tax hikes, it affects confidence in the entire investment climate.”
Sulemana Koney, Chief Executive Officer (CEO) of the Ghana Chamber of Mines
Industry leaders are also concerned about the possibility of further extensions to the levy. Initially set to expire in 2025, the levy has now been prolonged to 2028.
Some executives fear that the government may continue extending it indefinitely. “On top of existing royalties and other payments, the government is now imposing an additional three percent charge, which is non-deductible,” Mr. Koney stated.
“It’s a mandatory payment that directly reduces profitability and business viability.
“The original sunset clause was 2025. Now, it’s being extended to 2028. Who’s to say it won’t be extended further?”
Sulemana Koney, Chief Executive Officer (CEO) of the Ghana Chamber of Mines
Amid the backlash, mining industry leaders are calling for an open dialogue with the government to reassess the impact of the levy.
“The government must engage with stakeholders to ensure a balanced approach that benefits both the country and the investors who contribute significantly to the economy.”
Sulemana Koney, Chief Executive Officer (CEO) of the Ghana Chamber of Mines
While the government is keen on increasing revenue from the mining sector, industry leaders emphasize the need for a fair and predictable tax system that encourages long-term investment.
As discussions unfold, all eyes will be on the government’s next steps and whether it will consider adjusting the levy or engaging in further consultations with mining stakeholders.
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