The Ghana Chamber of Mines has issued a robust rebuttal to government justifications for raising the Growth and Sustainability Levy (GSL) from 1% to 3% in the 2025 Budget, arguing that the move distorts the true economic contribution of the mining sector and threatens its sustainability.
Meanwhile, the Finance Ministry had defended the hike by claiming Ghana has yet to fully capture the economic rent from its natural resources, especially in the context of soaring global gold prices. But the Chamber insists this narrative is misleading, conflating broader extractive sector figures with those of the mineral sub-sector alone.
Quoting World Bank data, the Chamber emphasized that mineral rents, defined as the residual value after all costs, including investor returns, averaged below 3% of GDP between 1990 and 2021. It highlighted that mineral rent cannot exceed mineral revenue, countering the notion that the sector is under-contributing.
In 2024, mineral revenue from Chamber member companies accounted for approximately 8% of Ghana’s GDP, showcasing the sector’s outsized role in the national economy. The Chamber also pointed to data from the Natural Resource Governance Institute (NRGI), which estimates that Ghana captures between 50% and 60% of mineral rents evidence, it says, that the government already secures a significant share.
Importantly, the Chamber flagged the risk of unfairly burdening companies outside the gold industry. “Firms mining bauxite, manganese, and other minerals that haven’t benefited from gold’s price rally will also be hit by the increased levy,” the Chamber warned, noting that operational realities vary widely across firms.
Despite expressing concern, the Chamber reaffirmed its commitment to dialogue with the Ministries of Lands and Natural Resources and Finance, aiming to cushion struggling firms while supporting national revenue objectives.
