The Ghana Extractive Industry Transparency Initiative (GHEITI) has launched its 2021-2022 reconciliation reports for the mining, oil, and gas sectors. These reports aim to raise public awareness, attract investor interest, and foster debate on issues concerning the mining industry.
The reports emphasize transparency, accountability, and citizen participation in decisions related to resource governance and spending. Key findings include a decline in the mining sector’s contribution to Ghana’s GDP from GHC 11.449 billion in 2020 to GHC 10.105 billion in 2021, an 11.7% decrease. However, in 2022, this contribution rose to GHC 13.025 billion, marking a 28.9% increase.
Gold production in 2021 dropped by 91.7% due to the introduction of a 3% withholding tax on small-scale unprocessed precious minerals. Despite this, the mining sector remained the fifth largest economic activity by value in 2021 and the third in 2022. Mineral export proceeds accounted for 36% and 39% of total merchandise exports in 2021 and 2022, respectively, surpassing other major foreign exchange earners like cocoa and crude oil.
The upstream oil and gas sector contributed 4.89% to Ghana’s GDP, 6.91% of total government revenue, and 7.03% of domestic revenues in 2021. The Ghana National Petroleum Corporation (GNPC) exported 11,615,029 barrels of crude oil for US$496,286,197.87, while other partners exported 55,843,177 barrels in 2022. Total crude oil exports for 2022 amounted to 67,458,206 barrels, valued at US$2.9106 billion, representing 31.19% of total merchandise exports. In 2021, crude oil exports were valued at US$3.947 billion, accounting for 26.81% of gross merchandise exports.
Mr. Ben Aryee, Special Technical Advisor to the Minister of Lands and Natural Resources, conveyed the Finance Minister’s speech, highlighting the significant role of the mining, oil, and gas sectors in Ghana’s economy. He stressed the need for prudent public financial management to mitigate the impact of GDP fluctuations in the mining sector on government expenditure projections.
Mr. Aryee noted government efforts to enhance transparency and judicious revenue management from these sectors to ensure lasting economic benefits. He mentioned the establishment of a Beneficial Ownership (BO) disclosure regime to combat illicit financial flows in the extractive sector. The amendment of the Companies Act in 2016, leading to the enactment of the Companies Act, 2019 (Act 992), addressed BO gaps and improved Customer Due Diligence (CDD) in license awards, reducing corruption incentives.
He also highlighted a marginal increase in gas production in 2021 and reaffirmed the government’s commitment to providing technical and financial support for the sustained implementation of EITI activities in Ghana.
Source: GNA
