Credit: Kekeli K. Blamey
Ghana’s gold mining sector has maintained its position as a cornerstone of the country’s fiscal stability and economic growth, despite challenges posed by global economic trends.
According to data from the Ghana Statistical Services (GSS), Ghana reclaimed its status as Africa’s top gold producer in 2023, with domestic output rising 32 percent to 3.7 million ounces.
The mining sector contributed significantly to the country’s economy, with gold export accounting for 62.1 percent of total export in 2023. In monetary terms, gold exports contributed GH₵46.5billion out of a total of GH₵74.8billion in the third quarter alone.
The sector’s performance is expected to continue in 2024, with gold production projected to range between 4.3 million and 4.5 million ounces, driven by increases from both large and small-scale producers.
New production from Newmont’s Ahafo North project, Azumah Mining Resources, and Cardinal Resource’s newly inaugurated Namdini Gold Mine is expected to bolster the overall output of chamber member-companies.
However, despite the sector’s achievements, challenges such as environmental sustainability, the regulation of artisanal mining, security of mining companies, fiscal issues like the Growth and Sustainability Levy (GSL), and the volatility of global gold prices remain.
The Chamber of Mines has expressed concerns over the imposition of the GSL, which it believes will lead to an increase in the cost of operations and widen the cost differential between gold producers in Ghana and their peers in other mining jurisdictions.
The Lands Minister has proposed that the next government take the issue of Value Added Tax (VAT) on exploration seriously and work closely with the chamber to find a solution.
Regarding security, he called for the deployment of specially trained forces to protect mining operations.
Overall, Ghana’s gold mining sector is expected to continue playing a crucial role in the country’s economic growth and development, despite the challenges it faces.
