Ghana reduces Growth and Sustainability Levy on gold producers

Ghana’s Parliament has approved a reduction in the Growth and Sustainability Levy on gold mining companies from three percent to one percent of gross production.

The amendment, passed on March 14, 2026, aligns the levy with the country’s newly introduced Minerals and Mining Royalty Regulations, 2025, which establish a sliding-scale royalty system linked to global gold prices.

Under the new system, royalty rates will increase as international gold prices rise, allowing the state to capture higher revenues during periods of strong commodity prices.

Deputy Minister for Finance Thomas Nyarko Ampem, who moved the motion for the bill’s approval, said the reduction in the levy is intended to ease the tax burden on mining companies while ensuring the country benefits from windfall gains through the new royalty framework.

He explained that the levy had previously been increased from one percent to three percent in 2025 because Ghana lacked a mechanism to capture excess profits from high gold prices.

According to him, the newly introduced sliding-scale royalties now address that gap. Under the framework, the royalty rate starts at five percent when gold prices reach about $1,900 per ounce, rises to six percent between $1,900 and $2,000, and could increase to as high as 12 percent if prices exceed $4,500 per ounce.

Mr Ampem said the revised tax structure aims to balance industry competitiveness with government revenue mobilisation from the country’s mineral resources.

However, the Minority Caucus has expressed concern about the broader impact of the new royalty regime, warning that the changes could affect Ghana’s attractiveness to mining investors and potentially threaten jobs if companies scale back operations.

Ghana is currently the  leading gold producer in Africa, with the mining sector playing a major role in export earnings, government revenue and employment.

By Christian Kpesese