The Africa Policy Lens (APL) has called on citizens, civil society organisations, and anti-corruption institutions to speak out against the government’s decision to reduce Ghana’s royalty rate in the Barari DV lithium agreement from the previously negotiated 10% to 5%.
The earlier 10% rate was the outcome of a mutual agreement between the previous administration and Barari DV Ghana Limited, following a review of royalty rates for lithium and associated minerals.
However, the current government—having earlier criticised the 10% rate while in opposition as insufficient—has now proposed a reduction to 5%, arguing that the previous administration acted unlawfully in negotiating the higher rate.
This shift in position has prompted public debate, with critics questioning why a government expected to defend Ghana’s interests would advocate for a lower royalty rate than the one it previously opposed.
At a press conference in Accra, the APL described the government’s justification for the reduction as troubling. It stated that the claim of illegality against the earlier agreement is unfounded and expressed concern about the implications of the proposed adjustment.
“The analysis demonstrates that the previous government acted within the law in securing what remains one of Ghana’s most advantageous mining agreements to date,” the APL said, after outlining the legal and policy basis for the initial 10% arrangement.
The group further noted:
“Assertions by the current government regarding lithium pricing and the legality of the lease are misleading and raise serious concerns that should draw the attention of citizens and oversight institutions. Should the proposed reduction from 10 percent to 5 percent be implemented, Ghana stands to lose millions of dollars in potential revenue.”
The APL added that such an outcome could be viewed as weakening the country’s fiscal position in a manner that may later be difficult to reverse, especially under international investment frameworks that make upward adjustments challenging.
The organisation urged Parliament to decline the proposed 5% rate and instead consider reinstating the original terms, including the 10% royalty rate previously negotiated.
“It is therefore imperative that Parliament either ratifies the original lease secured under the previous administration or ensures that any revised terms strengthen Ghana’s position. Short-term commodity price fluctuations should not be used as justification for diluting the country’s fiscal terms,” the APL said.
The group also expressed concern that public communication by some state institutions appears more aligned with presenting favourable narratives for the mining company rather than safeguarding national interests.
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