Ghana : Gold sector reform stirs hope and concern
As Ghana, Africa’s top gold producer and the world’s sixth‑largest, moves to overhaul its mining laws to secure a larger share of revenue amid rising world gold prices, debate is intensifying over economic competitiveness, investment and local value capture.
Ghana stands as a major force in global gold mining. Gold accounts for the bulk of the country’s mineral exports and has long been central to its economy. According to the Minerals and Mining Law of Ghana and industry data, Ghana overtook South Africa to become Africa’s largest gold producer, with annual output in the millions of ounces and significant contributions to national export earnings and foreign exchange.
Government Seeks a Larger Share
In early 2026, Ghana’s government initiated a comprehensive revision of its mining framework. Officials are proposing to double royalty rates and eliminate long-term tax and royalty stability agreements that previously locked in terms for up to 15 years. A draft bill expected before Parliament by March proposes a royalty schedule starting at 9% and rising to 12% if gold prices exceed $4,500 per ounce, roughly double the current 3%–5% range.
Isaac Andrews Tandoh, acting Chief Executive Officer of the Minerals Commission, explained the rationale behind the reform: “Renewal of investment stability agreements is not going to happen… We’ve seen companies use revenue from Ghana to buy mines elsewhere while refusing to pay even basic obligations,” he told, signaling a shift toward capturing more national value from mineral wealth.
Balancing Revenue and Investment
The headwinds behind the reform include soaring global gold prices, which reached record levels above $4,500 per ounce in late 2025 — a surge that has significantly boosted Ghana’s export revenues and foreign exchange position. However, these reforms also spark concerns among industry stakeholders.
The Ghana Chamber of Mines, representing major multinational operators, supports a sliding scale royalty system but warns that excessively high rates could push Ghana up the global effective tax curve, potentially stalling new projects and deterring investment. “We understand the rationale behind a sliding scale, but the structure must strike a sweet spot where government secures sustainable revenues while the industry continues to expand and reinvest,” said Kenneth Ashigbey, Chief Executive of the Chamber.
Context: Economy, Debt and Gold Exports
Ghana’s reliance on gold comes amid broader economic pressures. Mining contributes significantly to foreign exchange earnings and export performance. Government reforms coincide with efforts to stabilize public finances and strengthen long‑term economic resilience. According to industry forecasts, Ghana’s gold production has remained robust, with output projected to rise to approximately 5.1 million ounces in 2025, up from around 4.8 million in 2024.
Ghana’s Gold Board — GoldBod, established by Parliament in 2025 — plays an increasing role in formalizing the sector, including buying, assaying and exporting gold from licensed artisanal and small‑scale miners. The board was allocated about US $279 million under the 2025 national budget to support its operations.
Artisanal Mining and Formalization Efforts
Alongside changes in fiscal policy for large‑scale mining, Ghana is strengthening oversight of the artisanal and small‑scale mining sector, known locally as galamsey. The creation of GoldBod and regulatory moves to control gold exports aim to reduce smuggling, improve traceability and ensure greater fiscal capture from all segments of the industry.
Regional Trends in Commodity Policy
Ghana’s policy shift fits a broader African trend. Governments across the continent — including in Mali, Tanzania and the Democratic Republic of Congo — have revised mining codes over recent years to secure larger shares of revenues from rising commodity prices and to enhance local economic benefits. Such reforms reflect a strategic recalibration of resource governance across Africa’s resource‑rich economies.
Finding the Right Balance
For Ghana, the challenge is to balance increased revenue capture with maintaining a competitive investment climate. The government insists the reforms are not meant to drive away investors but to forge a more equitable and sustainable relationship between the state, local communities and the extractive industry.
As Ghana navigates this policy shift, the outcome will likely influence not only its own economic trajectory but also broader conversations about resource governance, industrial policy and competitive positioning in Africa’s mining sector.
