What's Happening?
The Ghana Chamber of Mines has commended the Ghanaian government for eliminating the Value Added Tax (VAT) on exploration activities. This decision, announced during the 11th Ghana Mining Industry Awards,
is seen as a strategic move to enhance Ghana's appeal as a mining investment destination. Ing. Dr. Kenneth Ashigbey, CEO of the Chamber, emphasized that this policy change is crucial for attracting new investments and sustaining the country's mineral reserves. The VAT removal is part of the 2026 Budget and is expected to alleviate financial burdens on companies, particularly those in early-stage projects. The Chamber hopes this collaborative approach will continue in discussions about the mining royalty regime, ensuring a fair framework for both the country and the industry.
Why It's Important?
The removal of VAT on exploration is significant for Ghana's mining sector, which is a major contributor to the country's economy through export earnings, government revenue, and employment. By reducing financial strain on mining companies, the policy is likely to boost investor confidence and encourage more geological exploration. This could lead to the discovery of new mineral resources, thereby strengthening local economies and expanding community development initiatives. The move is expected to position Ghana as a more competitive player in the global mining industry, attracting international exploration firms and unlocking new value from its mineral-rich terrains.
