'We’re losing to Kenya and Ivory Coast because of bad tax policy' – Acting Chamber of Mines boss

Ghana may lose its status as a top mining investment destination. The Ghana Chamber of Mines warns that a harmful tax regime is to blame.

Ahmed Dasana Nantogmah, Acting Chief Executive of the Chamber, spoke on JoyNews’ PM Express Business Edition. He said exploration companies are moving to friendlier countries like Kenya and Côte d’Ivoire. “We’re losing to Kenya and Côte d’Ivoire because of bad tax policy,” he stated.

His concerns follow the government's new 3% levy on mining firms' gross production. Additionally, there is now Value Added Tax (VAT) on exploration activities. “Exploration is the lifeline of mining,” Mr. Nantogmah emphasized.

He pointed out that VAT applies to exploration costs like assay and drilling. These costs are already high for risk-taking companies.

“Imagine this: you put $10 million into exploration,” he explained. “You don’t make a find, but you’ve paid VAT on it.” He noted that this VAT will not be refunded, making it a loss.

Mr. Nantogmah believes these policies make Ghana less attractive than regional peers. If small exploration companies face heavy burdens, they will seek opportunities elsewhere.

“They are moving to places like Kenya and Côte d’Ivoire,” he said, where they do not pay VAT. He warned that if this trend continues, Ghana could miss new discoveries.

Existing mining operations might also suffer without new projects coming in. “These companies go where their risks are acknowledged,” he added.

The Chamber of Mines urges the government to review tax measures urgently. They specifically want changes to the VAT on exploration activities. This action is necessary to maintain investor confidence in Ghana’s mining sector.

“This is not just about money; it’s about the future of Ghana’s mining industry,” Mr. Nantogmah concluded.