Minority cautions Gov’t over anti-investor mining policies

The Minority in Parliament has criticized the Mahama-led administration. They warn that recent decisions in the mining sector harm Ghana’s reputation as an investment destination.

On April 21, 2025, they sent a five-page letter to the Ministers for Finance and Lands and Natural Resources. The Minority Caucus expressed concern that these actions could reverse gains in foreign direct investment (FDI), especially in gold mining.

The letter was signed by Kojo Oppong Nkrumah, Kwaku Ampratwum Sarpong, and Dr. Mohammed Amin Adam. They noted a pattern of troubling decisions made over the past three months. These decisions have created discomfort and uncertainty among investors.

The MPs argue that these actions threaten Ghana's significant foreign capital inflows in gold mining. “These actions have generated high levels of discomfort among investors,” the letter states.

A key concern is two new tax measures targeting the mining sector under the 2025 revenue framework. One measure is a two percent Growth and Sustainability Levy on gross mining volumes. An additional levy is planned for 2026 through 2028.

The lawmakers describe these levies as similar to royalties. They believe this burden falls heavily on companies already facing financial strain. This could lead to operational losses and job cuts within the sector.

The Minority also criticized the GOLDBOD Act, which bans foreign investors from gold trading and exports. They argue this legislation was rushed through Parliament despite their objections.

They claim it violates constitutional protections against retroactive laws affecting accrued rights. This could raise investor anxieties about future security for their investments in Ghana.

“Following these levy increases, the Government announced the GOLDBOD ACT,” they wrote. “This act bans all foreign investors involved in gold trading.”

Additionally, they criticized the government’s refusal to renew Goldfields Ghana Limited's mining lease. They see this as a failure to recognize renegotiation opportunities over outright rejection.

According to them, renewing the lease could have secured better terms for Ghana rather than driving out an established investor. Such decisions may have long-term consequences for revenue projections in the sector.

Another issue raised is defunding of the Minerals Income Investment Fund (MIIF). The government reportedly diverted 80 percent of its inflows away from its original purpose.

Lawmakers assert this undermines state investment in strategic ventures and signals lack of commitment to resource development. “Investors are being informed that the state does not have skin in the game,” they said.

This situation further erodes investor confidence regarding long-term profitability in Ghana’s mining sector.

Beyond fiscal issues, recent security concerns were mentioned, including an attack on a mine that killed eight people. The Minority attributes part of this incident to inflammatory rhetoric aimed at foreign investors.

They worry such language fosters insecurity among mining companies operating in Ghana amid stalled investigations into violence incidents.

Additionally, they linked increased illegal mining activities or galamsey to abolishing Community Mining Schemes by the government.

Instead of shutting down these schemes, they argue reforming them would ensure accountability and effectiveness.

They note that promised replacements with Mining Cooperatives remain poorly defined without an implementation framework—creating a vacuum exploited by illegal miners.

“The reasons provided by the Minister for Lands for banning Community Mining Schemes were uncalled for,” they stated. “We are not surprised that galamsey activities have increased.”

In conclusion, lawmakers urged reconsideration of current approaches to Ghana's mining sector policies. They believe policies should encourage investment as Ghana rebuilds after fiscal challenges ahead.

According to them, continuing on this trajectory threatens immediate job losses and long-term economic credibility damage.