Ghana has experienced a notable decline in its global standing as a destination for mining capital, falling from 46th out of 82 jurisdictions in 2024to 53rd out of 68 in 2025 according to Fraser Institute’s Global Mining InvestmentAttractiveness Index (IAI).
Meanwhile, on the Mining Policy Perception Index (PPI), Ghana also declined from 46th out of 82 jurisdictions to 50th out of 68 in 2025.
This slump places Ghana among the less competitive jurisdictions in Africa, trailing behind regional leaders like Botswana and Morocco, which have successfully leveraged stable policies to attract exploration spending.
“The Investment Attractiveness Index takes both mineral and policy perception into consideration. We construct the overall Investment Attractiveness Index (IAI) by combining the Best Practices Mineral Potential index and the Policy Perception Index. This index measures the effects of government policy on attitudes toward exploration investment.”
Fraser Institute
The decline is largely attributed to a weakening Policy Perception Index (PPI) score, which serves as a “report card” for governments on how their regulatory and fiscal regimes are viewed by industry executives.
While Ghana’s mineral potential remains a draw, the survey indicates that “respondents consistently indicate that approximately 40 percent of their investment decision is determined by policy factors“.
Investors and experts have expressed growing concerns over the “uncertainty concerning the administration, interpretation, or enforcement of existing regulations” and the “taxation regime,” which includes the complexity of compliance and the overall cost of doing business.
Policy Hurdles and Infrastructure Deficits
The survey results highlight that Ghana’s downward trend is exacerbated by specific deterrents that discourage long-term commitment from global miners.
Beyond the instability of regulations, the “quality of infrastructure,” including access to reliable power and transport networks, remains a significant hurdle for exploration and development.
Furthermore, “regulatory duplication and inconsistencies” between various government departments have created an environment of “regulatory uncertainty,” making it difficult for companies to meet legislated timelines.
These systemic issues have caused Ghana to decline on the Best Practices Mineral Potential Index, suggesting that even its geological wealth cannot fully offset a deteriorating business climate.
Implications for the Global Mining Industry
Ghana’s slump carries broader implications for the global mining industry, particularly as competition for exploration capital intensifies across the African continent.
As “exploration investment can be shifted away from jurisdictions with unattractive policies,” Ghana risks losing its historical status as a premier mining hub to more reform-minded neighbors.
The 2025 report shows that jurisdictions like Botswana, which ranked 2nd globally on the Policy Perception Index, are successfully positioning themselves as more stable alternatives.
If Ghana fails to address “uncertainty concerning disputed land claims” and its “legal system’s transparency,” it may see a continued exodus of junior explorers who are essential for discovering the next generation of tier-one deposits.
A Call for Regulatory Reform
To reverse this decline, industry experts suggest that the Ghanaian government must adopt “global best practice” in legislative formulation to restore investor confidence.
The Fraser Institute’s findings act as a warning that “jurisdictions that investors assess as relatively unattractive may therefore be prompted to consider reforms” to avoid being sidelined in the global race for critical minerals.
Addressing “labor regulations” and improving the “quality of the geological database” could serve as immediate steps toward making the country a “stronger contender” for the US$4.2 billion in exploration spending reported by survey participants this year.
Without a concerted effort to improve its “policy climate,” Ghana’s position in the global mining hierarchy remains precarious.
READ ALSO : GSE Market Cap Hits GHS235.7bn on the Final Weekday Session
