Minority in Parliament has raised a red flag over the newly implemented minerals royalty regulations, cautioning that the shift to a sliding-scale framework could destabilize Ghana’s extractive sector and trigger the loss of approximately one million jobs.
Hon. Patrick Boamah, Chairman of Parliament’s Subsidiary Legislation Committee, contends that the aggressive tax structure will dampen investor appetite at a time when the nation is positioned to attract billions in fresh capital.
According to the Minority, the policy risks a catastrophic “net effect” where the pursuit of immediate mineral revenue leads to a broader collapse of employment and secondary tax streams.
“If you introduce this sliding scale, yes, you may accrue some revenue, but the net effect will be some job losses that I will be sharing with you. We are expecting between the last five years to the end of 2028 an investment flow of about $7 billion.”
Hon. Patrick Boamah
This warning comes as the government moves to replace the traditional flat 5% royalty rate with a progressive scale reaching as high as 12% for gold and lithium, depending on global market prices.
While the state aims to capitalize on record-breaking bullion prices which have recently surged past $5,000 per ounce the Minority argued that the timing could not be worse for the industry’s long-term health.
Between the last five years and the end of 2028, Ghana has been anticipating an investment flow of roughly $7 billion; however, critics like Hon. Boamah suggest that this capital may vanish if the fiscal environment becomes too punitive for multinational mining firms to sustain their local operations and expansion projects.
“If you lose close to a million jobs because the investment required did not come in, you are not going to get the employer’s tax, employee’s tax, or tax from companies,” Hon. Boamah warned
The “Sliding Scale” Dilemma and Investor Flight
The primary concern shared by the Minority is that the new sliding scale acts as a deterrent to the very reinvestment needed to keep the sector afloat.
Hon. Boamah emphasized that the industry is currently at a crossroads, where the projected $7 billion investment is supposed to bolster “local companies” and “local content” across the value chain.
However, by imposing a “sliding scale” that triggers higher payments as prices rise, the government may be “choking future investment” and forcing multinational giants to reconsider their commitment to the Ghanaian market.
Stakeholder Resistance and Economic Ripple Effects
The Minority’s position is echoed by industry heavyweights and civil society leaders who fear the regulation’s unintended consequences.
Hon. Boamah noted that prominent figures like Ken Ashigbey of the Ghana Chamber of Mines are “very passionate” about the dangers this legislative instrument poses to the sector’s growth.
The argument is that the “job losses” will prevent mines from being able to “expand,” creating a vacuum in the economy.
Beyond the direct mining roles, the loss of a million jobs would result in a massive shortfall in PAYE (Pay As You Earn) and corporate taxes, potentially negating the very revenue gains the government hopes to achieve through the 12% royalty cap.
Competitive Risk in the Global Extractive Market
By moving away from stability agreements and hiking rates, Ghana risks losing its competitive edge to other mining jurisdictions.
The Minority warned that if the “investment required” fails to materialize due to these regulations, the secondary support industries ranging from logistics to local engineering firms will be the first to suffer.
The parliamentary committee head insists that while the state may see a temporary spike in royalties, the long-term erosion of the tax base and the social cost of mass unemployment will leave the country in a more precarious financial position by 2028.
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