The Ghana Extractive Industries Transparency Initiative (GHEITI) has expressed support for the government’s newly introduced sliding-scale mineral royalty system, describing it as a fairer approach to revenue generation in the mining sector.
The new framework, which links royalty rates to global gold prices, allows the state to adjust its share of mining revenues depending on market conditions. Under the system, royalty rates will range between 5 percent and 12 percent, enabling the government to benefit more during periods of high commodity prices while sharing risks with investors when prices fall.
However, GHEITI has cautioned that the continued application of the Growth and Sustainability Levy alongside the new royalty regime could impose a heavy financial burden on mining companies. The organisation warned that the combined fiscal obligations could exceed 16 percent of gross production, potentially affecting Ghana’s competitiveness as an investment destination.
While Parliament has moved to reduce the levy from 3 percent to 1 percent, experts believe further adjustments may be needed to strike a balance between maximising national revenue and maintaining investor confidence. The initiative ultimately reflects ongoing efforts to reform Ghana’s extractive sector and ensure a more equitable distribution of resource wealth.
Source: thebftonline.com
