The Minority in Parliament has strongly criticised the Mahama-led administration over a string of recent decisions in the mining sector, warning that these actions are damaging Ghana’s image as a stable and attractive investment destination.
In a five-page letter dated April 21, 2025, addressed to the Ministers for Finance and Lands and Natural Resources, the Minority Caucus warned that the government’s recent actions could reverse hard-won gains in foreign direct investment (FDI), especially in the country’s gold mining industry.
Signed by the Ranking Member of the Economy and Development Committee, Kojo Oppong Nkrumah, the Ranking on the Lands and Natural Resources Committee, Kwaku Ampratwum Sarpong and Ranking on the Finance Committee, Dr. Mohammed Amin Adam, the letter cites a pattern of decisions made within the past three months which, according to the Minority, have collectively sent troubling signals to the investor community.
These decisions, the MPs argue, have generated discomfort and uncertainty, particularly within Ghana’s gold industry, where the country has historically enjoyed significant foreign capital inflows.
“These actions have generated high levels of discomfort among the investor community and have the potential impact of quickly eroding the gains Ghana has made in attracting foreign direct investments,” the letter reads.
Central to the Minority’s concerns is the introduction of two new tax measures targeting the mining sector under the 2025 revenue framework.
These include a two percent Growth and Sustainability Levy imposed on gross mining volumes, and an additional levy planned to take effect from 2026 through 2028.
Describing these measures as akin to royalties, the lawmakers argue that the burden falls heaviest on companies already facing financial strain, particularly those whose operations have not benefited from recent commodity price surges.
They note that these levies risk aggravating operational losses and potentially leading to job cuts within the sector.
In a particularly scathing critique, the Minority took issue with the recently enacted GOLDBOD Act, which they say bans all foreign investors from participating in gold trading and exports.
The opposition contends that this legislation was rushed through Parliament despite their objections and violates constitutional protections under Article 107(b), which bars retroactive laws that affect accrued rights. They fear this could set a dangerous precedent and raise investor anxieties over the future security of their investments in Ghana.
“Following these levy increases, the Government secondly announced the enactment of the GOLDBOD ACT which among other things proscribes the participation of foreign investors in Gold trading and export.
Contrary to the concerns expressed by the Minority caucus in Parliament, the bill was rushed through and has since been announced to have banned all foreign investors involved in gold trading and exports,” the letter stated.
The letter also criticises the government’s refusal to renew a mining lease for Goldfields Ghana Limited, describing the move as a failure to recognise the value of renegotiation over outright rejection.
According to the signatories, government could have used the lease renewal as an opportunity to secure better terms for the country, rather than taking an approach that risks driving out an established investor.
They argue that such decisions are likely to have long-term consequences for revenue projections and capital retention in the sector.
Another key issue raised by the Minority is the defunding of the Minerals Income Investment Fund (MIIF), with the government reportedly diverting 80 percent of its inflows away from its original purpose.
The lawmakers assert that this undermines the state’s own role in investing in strategic mining ventures and signals to the market that the government is no longer committed to holding equity in resource development.
They warn that this move erodes investor confidence further, as it implies that the state itself lacks confidence in the sector’s long-term profitability.
“Investors and potential investors are being informed that the state does not have skin in the game,” they said.
“This signals to the markets that Ghana is pulling back from its commitment to securing a bigger share of mining resources.”
Beyond fiscal and regulatory decisions, the letter references recent security concerns, citing an attack on a mine that led to the death of eight individuals.
The Minority attributes the incident, in part, to inflammatory rhetoric from public figures aimed at foreign investors.
They express concern that such language, coupled with stalled investigations into the violence, is fostering a sense of insecurity among mining companies operating in the country.
Additionally, the Minority linked the recent resurgence in illegal mining activities, or galamsey, to the government’s decision to abolish Community Mining Schemes.
The Minority argues that rather than shutting down the schemes, the government could have corporatised and reformed them to ensure accountability.
They note that the promised replacement system being Mining Cooperatives remains poorly defined and lacks an implementation framework, leaving a vacuum that illegal miners are now exploiting.
“The reasons provided by the Minister for Lands for banning the Community Mining Schemes and promising to replace them with mining cooperatives was uncalled for,” the statement read.
“We are not surprised that galamsey activities have increased.”
The lawmakers conclude by urging the government to reconsider its current approach to the mining sector. They argue that Ghana’s economic circumstances require policies that encourage rather than deter investment, particularly as the country seeks to rebuild after recent fiscal challenges.
According to the Minority, the current trajectory threatens not only immediate job losses and project disruptions, but also long-term damage to the country’s economic credibility.
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