Ghana has announced a landmark policy change that will abolish value-added tax on mineral exploration and reconnaissance activities, a move aimed at reviving investment in its mining sector. Finance Minister Cassiel Ato Forson revealed the plan during the presentation of the 2026 Budget, describing it as a critical step to boost greenfield exploration and reinforce Ghana’s leadership in the gold-mining industry.
The current 15% VAT applies to high-risk exploration costs, including drilling, sampling and assay work, which many in the industry say has discouraged early-stage investment. By removing this tax, the government hopes to lower the barrier for exploratory firms and attract more foreign capital. According to the minister, the reform will “revive investor confidence, stimulate greenfield activity, and ensure the long-term sustainability of the country’s mining sector.”
The decision also supports efforts to better formalize the mining sector, especially among small-scale and artisanal miners, where unregulated prospecting has contributed to environmental damage, deforestation, and pollution of waterways. Ghana’s Chamber of Mines welcomed the reform. Michael Akafia, its president, told Reuters that the VAT had long “negatively affected our competitiveness as a mining jurisdiction and was a clog on the pipeline of projects.”
Ghana’s gold market is especially poised to benefit. Early data already shows strong growth: between January and October, exports from artisanal and small-scale miners reached 81.7 metric tons, worth about US$8.1 billion, surpassing the 74.1 tons (US$6.6 billion) shipped by large-scale miners. With Ghana targeting a total production of 144.5 tons in 2025, the removal of exploration VAT could accelerate new discoveries, expand reserves, and help formalize the often-informal artisanal mining segment.
Analysts see the policy as a smart contrast to a trend of resource nationalism elsewhere in Africa. While countries like Zimbabwe, Mali, and the Democratic Republic of Congo are tightening state control over mining or increasing local-content requirements, Ghana is taking a more investor-friendly route, reducing costs today to build a stronger sector for the future.
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