The Ghana Chamber of Mines has urged the government to exempt exploration companies from VAT, aiming to bolster investment and support sustainable mining practices. At its Annual General Meeting, Chamber President Michael Edem Akafia emphasized the importance of incentives for exploration, highlighting the sector’s contributions to the economy amidst existing challenges. He stressed the need for government support to navigate macroeconomic hurdles and illegal mining threats.
The Ghana Chamber of Mines recently made a significant push to influence government policy by requesting an exemption from Value Added Tax (VAT) for exploration companies. This proposal, if accepted, could potentially boost investment in Ghana’s mineral exploration sector and help ensure its long-term viability. The Chamber’s call reflects a broader commitment to supporting Ghana’s socio-economic growth through sustainable mining practices while addressing the precarious state of the industry.
During the Chamber’s 97th Annual General Meeting held on May 30, 2025, President Michael Edem Akafia stressed the importance of exploration for the future of mining in the country. He pointed out the need for incentives rather than burdens when it comes to exploration, especially given the challenges facing the industry today. “This gathering not only reflects on the state of our industry but also reaffirms our commitments to advancing the socio-economic transformation of our country through sustainable mineral development,” Akafia noted.
Akafia further emphasized the difficulties ahead related to policy instability, illegal mining, environmental concerns, and world trade tensions. But he remained hopeful about the mining sector’s potential. He asserted that despite these challenges, gold will remain a core economic driver for Ghana. Therefore, he urged the government to remove VAT on exploration, which would likely attract much-needed investments into the upstream of the mining industry.
Ghana is recognized as Africa’s leading gold producer, with production increasing from 125.6 tonnes in 2023 to 149.8 tonnes in 2024—an impressive 19.3% rise. Akafia mentioned that mining and quarrying have also contributed significantly to the overall economy, growing by nearly 10% in 2024 as opposed to just 1.7% the previous year. This growth signals that the sector is a crucial pillar for national GDP expansion.
While he acknowledged the looming macroeconomic challenges, including inflation and supply chain issues that could affect growth in 2025, Akafia voiced confidence in the sector’s resilience. He reiterated the necessity for government-supported security measures to safeguard legitimate mining operations from illegal activities. “Our growth prospects may face downside risk from these happenings… However, with the right policy support, including the removal of VAT on exploration activities, we can consolidate the gains made so far,” he remarked during the meeting.
The Annual General Meeting brought together a wide array of stakeholders from the mining industry, such as government officials, diplomats, corporate leaders, and media representatives, highlighting the collaborative effort needed to address the future of mining in Ghana.
In summary, the Ghana Chamber of Mines is advocating for the elimination of VAT on exploration activities to stimulate investments in the mining sector. The President highlighted the sector’s contribution to the economy and warned of impending challenges such as illegal mining and policy uncertainty. The call for a supportive policy environment is vital for the industry’s growth and sustainability moving forward.
Original Source: asaaseradio.com
