Ghana’s government has unveiled a bold plan to ramp up revenue from the mining sector, with a proposed increase in the Growth and Sustainability Levy from 1% to 3%. This move is expected to shore up the country’s finances and drive economic growth.
According to Finance Minister Cassiel Ato Forson, Ghana has not been getting its fair share of the wealth generated by its vast natural resources. “Despite the global surge in gold prices, Ghana has not been able to take full advantage of this development. We have failed to fully capture the economic rent of our natural resources,” he lamented.
The minister’s concerns are rooted in the stark reality that while natural resource rent accounts for about 14% of GDP, revenue from the extractive industry contributes a paltry 1.5% to the country’s GDP.
To address this anomaly, the government is proposing a hike in the Growth & Sustainability Levy on gross mining production. The new rate of 3% is designed to ensure that Ghana gets a bigger slice of the revenue generated by rising gold prices.
The expected windfall from this policy change will be channeled into development projects, infrastructure development, and economic diversification initiatives.
As the Ghanaian economy continues to face headwinds, this move is seen as a strategic shift towards harnessing the full potential of the country’s natural resources to drive sustainable growth.
The proposal is set to be debated by Parliament in the coming weeks, with stakeholders eagerly awaiting the outcome.