Ghana will abolish value-added tax on mineral exploration and reconnaissance to boost investment
in its mining sector, its finance minister said, as Africa’s top bullion producer seeks to reverse over two decades of sluggish new development.
Ghana, which has been overhauling its mining sector, introduced the levy 25 years ago amid broader fiscal reforms.
The 15% tax covers exploration-related expenses such as drilling and assay work, hiking upfront costs for companies operating in the high-risk early stages of mining projects.
Industry groups, including the Ghana Chamber of Mines, have long argued that the tax discouraged greenfield investment and eroded Ghana’s competitiveness versus the likes of Ivory Coast, Burkina Faso and Kenya, which exempt exploration from VAT.
“Abolishing VAT will revive investor confidence, stimulate greenfield activity, and ensure the long-term sustainability of the country’s mining sector,” Cassiel Ato Forson told parliament during the 2026 budget presentation on Thursday.
The measure, part of a broader VAT review, is aimed at promoting responsible mining and curbing unregulated prospecting that has degraded forests and waterways, Forson added.
SMALL-SCALE MINING DRIVES RECORD GOLD OUTPUT
The policy shift comes after Ghana posted record small-scale gold exports between January and October.
Shipments surged to 81.7 metric tons worth about $8.1-billion, surpassing large-scale exports of 74.1 tons worth $6.6-billion for the first time, according to finance ministry data. Ghana had aimed to produce about 144.5 tons of gold in 2025.
The surge underscores the impact of recent regulatory reforms that have formalised artisanal mining and tightened export controls, Forson said.
The Chamber of Mines welcomed the VAT removal.
“VAT on exploration negatively affected our competitiveness as a mining jurisdiction and was a clog on the pipeline of projects,” its president, Michael Akafia, told Reuters.
Ghana’s mining sector, which accounts for over a third of export revenues, is dominated by gold alongside bauxite and manganese.
The government launched an audit this month – part of broad reforms – to boost earnings from the industry.
Major operators include Newmont, AngloGold Ashanti, Gold Fields, Perseus and China’s Zijin and Cardinal Namdini.