ACCRA, July 1 — Ghana risks losing mining investments to its neighbors due to the growing uncompetitiveness of the country’s mining framework, Kenneth Ashigbey, chief executive officer (CEO) of the Ghana Chamber of Mines, has cautioned.
During the day-long Mining for Development Forum on Tuesday, Ashigbey said the reason Ghana became Africa’s number one mining investment destination and leading gold producer was the competitiveness of its existing framework.
But the country is beginning to lose that attractiveness due to new developments that are eroding confidence in the mining sector, he noted. Ashigbey observed that, despite the government’s decision to exempt mining exploration from value-added tax, investors have yet to respond positively amid concerns over the high fiscal burden imposed on mining companies.
Ghana’s sliding-scale royalty regime, according to the CEO, increases the government’s take from mining firms close to 60 percent, making the country’s mining framework increasingly uncompetitive.
He added that neighboring countries with more competitive frameworks are beginning to attract investments away from Ghana, which is risky for the country’s development.
Besides, Ashigbey said the recent discussions about the renewal of mining leases also give a warning signal to investors about the security of tenure in Ghana’s mining sector. (Namibia Daily News / Xinhua)
