Ghana removes VAT on mineral exploration to attract investors
Ghana has announced plans to remove the value-added tax (VAT) on mineral exploration to revive investment in its mining sector, after years of slow development, according to a Reuters report on November 14th.
25 years ago, Ghana introduced a 15% charge applicable to key early-stage exploration expenses, including drilling and assay work. Mining operators had long argued that the additional tax increases upfront costs during a high-risk phase of mining activity, deterring companies from working at greenfield projects in Ghana.
Ghana’s Finance Minister Cassiel Ato Forson said, “Abolishing VAT will revive investor confidence, stimulate greenfield activity, and ensure the long-term sustainability of the country’s mining sector.”
Regional competitors, such as the Ivory Coast, Burkina Faso and Kenya, do not levy VAT on mineral exploration.
Moreover, the Ghanaian government is also conducting a sector-wide audit to increase earnings from natural resources.
Following the tax removal, authorities expect exploration activity to rebound and contribute to long-term production growth rather than relying heavily on small-scale mining to drive output.
In 2025, Ghana experienced a surge in small-scale gold exports between January and October, with exports from artisanal miners reaching 81.7 metric tons worth approximately $8.1 billion, overtaking large-scale exports for the first time.
Large-scale exports totalled 74.1 tons valued at $6.6 billion during the same time period, and the government aimed to produce roughly 144.5 tons of gold for the year.
Reportedly, the surge reflects recent efforts to authorise small-scale mining and regulate export controls, a move intended to restrict smuggling and improve state revenue.
The mining sector is responsible for more than a third of Ghana’s export earnings, with gold as the major contributor, along with bauxite and manganese.
The Ghana Chamber of Mines appreciated the tax removal, and its President, Michael Akafia, said, “VAT on exploration negatively affected our competitiveness as a mining jurisdiction and was a clog on the pipeline of projects.”
Major mining operators in Ghana include Newmont, AngloGold Ashanti, Gold Fields, Perseus and Chinese firms Zijin and Cardinal Namdini.
Reuters, Maghrebi.org
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