Ghana Must Rethink Extractive Sector Fiscal Regime – Prof. Bokpin Says
Economist and Professor of Finance at the University of Ghana Business School, Godfred Bokpin, has called for a comprehensive review of Ghana’s fiscal regime in the extractive sector to ensure the country benefits optimally from its natural resources.
Speaking on TV3’s New Day program on Thursday, March 27, 2025, Prof. Bokpin argued that Ghana earns significantly less from its extractive resources compared to other resource-rich nations.
“If you look at the extractive sector and how much Ghana is getting compared to the extractive sector value chain, we are one of the least earners from our natural resources. We are earning far less compared to Nigeria. Nigeria is earning more than 50%. The average for South Africa is more than 48%. We have been around 19.3%,” he noted.
He stressed the need for a reassessment of the fiscal framework governing the sector to increase revenue generation. According to him, Ghana must optimize earnings from its depleting natural resources before they are exhausted.
Prof. Bokpin also highlighted concerns over irresponsible mining practices, including those by large-scale companies, which he said were harming the environment.
“Some of the big companies are also doing irresponsible mining. It could be legal, but whether or not it is responsible is another matter. Some have permits but are still causing significant environmental damage,” he said.
Parliament Passes Growth and Sustainability Levy Amendment
Meanwhile, Parliament has passed the Growth and Sustainability Levy Amendment Bill 2025, increasing the levy on gold mining companies from 1% to 3% of their gross production. The amendment also extends the levy’s application period to 2028.
Defending the increase, Finance Minister Dr. Cassiel Ato Forson argued that the government must capitalize on rising gold prices to generate additional revenue for national development.
“This adjustment is necessary to ensure that the country benefits more from the booming gold sector while addressing fiscal challenges,” Dr. Forson said during the parliamentary debate.
