VAT Removal on Exploration Signals Ghana’s Readiness for Mining Investment – Ken Ashigbey
Chief Executive Officer (CEO) of the Ghana Chamber of Mines, Ken Ashigbey, has commended government for scrapping Value Added Tax (VAT) on mineral exploration, describing the move as a strong signal of Ghana’s readiness to attract fresh investment into the mining sector.
Speaking on PM Expression Business Edition on January 29, 2026, during a discussion on “Rising Gold Prices and Impact on Ghana’s Economy”, Mr Ashigbey said the policy intervention has already improved investor sentiment, particularly at a time when global gold prices are surging.
“One of the positive things that have happened, and we commend His Excellency the President, the Minister of Finance, and the Minister of Lands and Natural Resources for it, is the fact that government took off VAT on exploration,” he stated.
He explained that exploration activities are critical to sustaining long-term mineral production, noting that much of Ghana’s current mining output is based on exploration work undertaken several years ago. According to him, the imposition of VAT had significantly constrained exploration budgets, reducing the effective value of capital committed by investors.
“If you brought a million dollars to do exploration in Ghana, you only had about 78 percent of that amount for your exploration because VAT was taking about 22 percent,” he noted, stressing that the tax burden discouraged fresh exploration activity.
Mr Ashigbey said the VAT removal, announced in the national budget, has sent a positive signal to the market that Ghana is open and ready for investment. However, he cautioned that this positive development is being weighed against uncertainties arising from the ongoing review of the Mining Act and mining-related policies.
He observed that while rising gold prices create a favourable investment environment, regulatory uncertainty remains a challenge. “It’s a good time, but it could be better, definitely for everybody,” he said.
Despite these concerns, the Chamber of Mines CEO expressed optimism that continued engagement between government and industry players would allow Ghana to fully capitalise on the current commodity price rally. He noted that higher prices present an opportunity to expand production, create more jobs and significantly boost government revenues.
Mr Ashigbey also renewed calls for the establishment of a Minerals Revenue Management Act, similar to the Petroleum Revenue Management Act, to ensure prudent management of mineral revenues during periods of high commodity prices.
“Our ask is that, in the same way we have the Petroleum Revenue Management Act, we should also have the Minerals Revenue Management Act so that in these good times, we are able to manage the resources effectively for future challenges,” he said.
Gold prices earlier this week surged past the $5,000 per ounce mark for the first time in history. Recent market data shows that the bullion has extended its rally further, with prices currently hovering around $5,200 per ounce, reinforcing expectations of stronger revenue inflows for gold-producing economies such as Ghana.
