Accra, March 25, – The Institute of Economic Affairs (IEA) has warned that the recent reduction in the Growth and Sustainability Levy could weaken Ghana’s ability to fully benefit from its natural resource wealth.
The policy think-tank said the decision to reduce the levy on mining companies from three per cent to one per cent—intended to ease the burden on investors—risked undermining broader efforts to maximise national gains from the extractive sector.
At a press briefing in Accra, Justice Sophia Akuffo, Distinguished Fellow of the IEA and former Chief Justice, questioned the policy direction, describing it as inconsistent with Ghana’s long-term development objectives.
“Why increase royalties to capture more value from our mineral resources, only to offset that benefit through tax concessions?” she asked.
Justice Akuffo argued that the move diluted the impact of recent fiscal measures aimed at increasing state revenue from the mining sector, stressing the need for coherent and predictable policies.
She expressed concern that despite Ghana’s vast resource endowment, the country continued to rely on external financial support, including repeated engagements with the International Monetary Fund.
She described as troubling recent indications by the Minister of Finance of plans to borrow GH¢17 billion to finance public sector salaries, urging government to instead leverage natural resources as a sustainable revenue base.
Drawing comparisons with countries such as Botswana, Burkina Faso, Chile and Venezuela, she noted a growing global shift toward resource ownership and value maximisation.
According to her, these countries had adopted frameworks that increased state participation and ensured greater national benefit from extractive industries.
“These examples demonstrate that asserting sovereignty over natural resources does not deter investment, but rather redefines the terms in favour of national development,” she said.
Justice Akuffo further noted that Ghana was at a critical juncture, citing the expiration of more than 30 mining leases, rising global mineral prices, and new discoveries of critical minerals as opportunities to reset the country’s resource governance framework.
She advocated the adoption of service-based contractual arrangements that would preserve national control while leveraging private sector expertise for efficiency and innovation.
The IEA called on government to pursue consistent fiscal policies that balance investor confidence with national interest, ensuring that Ghana’s natural resource wealth translates into sustainable and inclusive economic growth.
GHBUSS
25 March 2026
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