Ghana’s mining sector is at a critical turning point, with policy certainty, regulatory stability and investor confidence emerging as key factors that will determine the country’s future competitiveness, a Senior Fellow at Africa Policy Lens (APL), Wisdom Edem Gomashie, has warned.
Speaking at the 2026 West Africa Mining & Power Conference (WAMPEX) held at the La Palm Royal Beach Hotel in Accra, Mr. Gomashie cautioned that recent fiscal and regulatory changes could adversely affect Ghana’s attractiveness to mining investors if not carefully managed.
The conference, organized by the Ghana Chamber of Mines, brought together more than 6,000 industry stakeholders from across West Africa to deliberate on the future of mining, power and resource governance.
Mr. Gomashie, a mining engineer and consultant, was a panelist at the opening session on the theme: “Fiscal Regimes in West Africa – State Ownership and Private Investment: Are They Mutually Exclusive?”
Addressing Ghana’s newly approved increase in mineral royalties to a sliding scale of up to 12 percent, he acknowledged government’s objective of maximizing revenue from the mining sector but stressed the need for balance.
“Government is justified in seeking to maximize national benefits and enhance revenue generation from the sector. However, a balanced and measured approach remains essential,” he stated.
According to him, abrupt increases in fiscal obligations, combined with concerns about tenure security and uncertainty surrounding fiscal stabilization arrangements, could discourage investment.
“A significant and sudden increase in fiscal burdens risks weakening investor confidence, delaying investment decisions and redirecting capital to competing mining jurisdictions,” he warned.
Mr. Gomashie further revealed that Ghana has steadily been losing its competitive edge to Côte d’Ivoire in attracting exploration-related foreign direct investment (FDI).
“Ghana has already been losing ground to Côte d’Ivoire in attracting exploration FDI over the past five years. If the current policy trajectory introduced in 2025 remains unchanged, Ghana could lose up to 50 percent of its exploration FDI inflows over the next five to ten years,” he cautioned.
He noted that such a development would threaten the long-term sustainability of the country’s mining industry by reducing future mineral discoveries and shrinking the pipeline of projects needed to sustain production and government revenue.
Mr. Gomashie, however, commended government’s decision to remove Value Added Tax (VAT) on mineral exploration activities in the 2026 Budget.
“The removal of VAT on exploration is a commendable intervention and must be managed effectively to attract greater exploration investment,” he said.
On the issue of increased state participation in mining, Mr. Gomashie rejected suggestions that state ownership and private investment are incompatible.
“State ownership and private investment are not mutually exclusive. They can coexist successfully when supported by policy clarity, regulatory certainty, transparency and investor confidence,” he emphasized.
He argued that Ghana currently lacks a clearly defined policy framework outlining how the state and citizens intend to increase direct participation in mine ownership and operations.
“Establishing policy certainty is imperative. Before pursuing a greater ownership footprint, Ghana must first address capital mobilization, technical expertise, operational capacity and institutional readiness,” he said.
As part of a long-term strategy, he proposed structured partnerships between the state and multinational mining companies during lease renewals, lease expiries and approvals of new mining leases.
“Such partnerships offer a practical pathway to building local ownership, technical capacity and financial participation rather than pursuing reactive approaches that are not anchored in a coherent policy framework,” he explained.
Mr. Gomashie also called for the repositioning of the Minerals Income Investment Fund (MIIF) to play a more strategic role in advancing Ghana’s mining participation agenda.
Drawing lessons from international success stories, he cited Botswana’s Debswana and Chile’s Codelco as examples of how strong state-private sector partnerships can generate substantial national benefits while preserving investor confidence.
The panel concluded that Ghana’s ability to balance increased national benefits with a predictable, stable and investment-friendly business environment will be crucial to securing the long-term competitiveness of its mining sector.
