Increase in Growth and Sustainability Levy: PwC warns of potential decrease in extractive sector investments

PwC has raised concerns regarding the recent increase in Ghana's growth and sustainability levy, which could potentially deter investments in the extractive sector. The levy, set at 10% of profits for mining companies and 5% for oil and gas firms, is aimed at generating additional revenue for the government. However, PwC warns that this hike could lead to reduced foreign direct investment as companies may reconsider their operations in the country due to heightened financial burdens.

The firm emphasizes that while the initiative aims to bolster economic growth, it risks making Ghana less competitive compared to other nations with more favorable tax regimes for extractive industries. Investors might seek more attractive environments elsewhere if operational costs escalate. Therefore, it is crucial for policymakers to balance revenue generation with maintaining an appealing investment landscape to ensure sustainable development within the sector.