Ken Ashigbey, Chief Executive Officer of the Ghana Chamber of Mines, has cautioned that a proposed increase in gold royalties from 5% to between 5% and 11% could have a “debilitating impact” on the sector if rushed to Parliament without extensive stakeholder engagement.
Speaking on the Joy Super Morning Show on Wednesday, Ashigbey highlighted that Ghana’s current corporate tax regime already makes the effective tax burden on gold miners one of the highest in Africa.
“Even with the 5% royalty, our effective tax rate is about 50% when you include royalties, corporate income tax, and government dividends. Increasing this could seriously affect the sustainability of the industry,” he said.
Ashigbey compared Ghana’s mining tax structure with peers like Nigeria, Burkina Faso, Mali, and Côte d’Ivoire, noting that the country’s effective tax rate is already high relative to the region.
He also emphasised the importance of balancing government revenue needs with the long-term growth of the industry.
“So far, we’ve had one engagement with the Minister, and the government has shared its position. But rushing this to Parliament within 21 days, without thorough consultation, risks shooting ourselves in the foot,” Ashigbey added.
The discussion comes amid government proposals to revise the mineral royalty framework to increase contributions from the gold sector, a major pillar of Ghana’s economy.
The current 5% royalty, Ashigbey explained, already generates substantial revenue for the state, and the proposed increase to as much as 11% would be based on the world price of gold.
Ashigbey urged that the matter be carefully deliberated to ensure that government revenue objectives are met while protecting the mining sector’s long-term sustainability.
“We need a constructive conversation around this to find the sweet spot that guarantees government revenue but allows the industry to continue providing the resources needed for national development,” he said.
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