Ghana's position as West Africa's leading gold producer faces serious threat as mining companies redirect investment to neighboring countries offering more competitive fiscal regimes, the CEO of the Ghana Chamber of Mines warned Thursday. Ken Ashigbey told Joy News' PM Express Business Edition that Ghana's current mining tax structure has reached the upper limit of what international standards recommend, making the country increasingly unattractive to investors who now have viable alternatives across the region.
Fiscal Burden Exceeds IMF Guidelines
Ashigbey revealed that Ghana is already operating at the upper limit of the International Monetary Fund's recommended range for sharing mining profits between governments and investors. "The upper limit is what we are hitting," he said, warning that some mining firms are already under pressure because of high operating costs and low-grade mines. The situation deteriorates further when gold prices fall, as government's share of mining revenues could exceed 60 percent. "If you are an investor and the government is going to take above 60, and you have an Ivory Coast and other countries that were going to take less, definitely you are going to find out that some of your investments will move out," he stated.
The Chamber CEO disclosed that one mining company recently redirected funds intended for projects in Ghana to Côte d'Ivoire due to Ghana's fiscal regime. "The money moved into Côte d'Ivoire due to the fiscal regime that is not friendly, especially the royalty," he revealed. He criticized the increase in royalty rates from 5 percent to between 5 percent and 12 percent, saying it has significantly raised production costs for mining firms. "What you have done is that you've added an additional cost to the production of these mining firms," he said.
Regional Competition Intensifies
Ashigbey noted that Ghana's stable democracy and incentives under Act 703 previously helped attract investors. However, he said neighboring countries are quickly adopting similar strategies and becoming more competitive. He pointed to Côte d'Ivoire's growing ambitions in the mining sector. "Their objective is that in the next 10 years they want to be the leading producer of gold in Africa," he said. "It means they want to take over from us in Ghana."
He cited mining giant Endeavour as one example of a company that shifted focus from Ghana to Côte d'Ivoire, where major gold discoveries were recorded last year. Ashigbey also warned that Guinea is emerging strongly in the mining space as geological advantages are not unique to Ghana. "The geology is not restricted to Ghana," he stressed.
Urgent Policy Reconsideration Needed
The Chamber CEO called on government to urgently reconsider the country's fiscal policies to avoid losing more mining investments to competing destinations across West Africa. His comments come as Ghana faces pressure to balance revenue generation with maintaining a competitive investment climate in a region where capital mobility has become increasingly fluid.
Why This Matters:
Ghana's mining sector represents a critical source of foreign exchange, employment, and tax revenue for the national economy. When government tax policy pushes mining investment across borders to competitors, Ghana loses not just immediate revenue but long-term capital formation and technological development. The warning that government could claim more than 60 percent of mining revenues during price downturns illustrates how excessive taxation can backfire, driving away the very investment base it seeks to exploit. Côte d'Ivoire's stated ambition to become Africa's leading gold producer within a decade demonstrates that regional competitors are actively pursuing market-friendly policies to attract capital Ghana is losing. The shift of actual investment dollars to neighboring countries confirms this is not theoretical but a present reality with measurable fiscal consequences for Ghana's economic future.