The Ghana Chamber of Mines has urged the government to exempt exploration companies from VAT in order to stimulate investment in the mining sector. During its 97th Annual General Meeting, president Michael Edem Akafia highlighted the economic importance of exploration and discussed various challenges facing the industry. By removing VAT, the Chamber believes Ghana can maintain its position as a leading gold producer while ensuring sustainable growth.
The Ghana Chamber of Mines is advocating for a significant tax relief aimed at enhancing the investment landscape for exploration companies. Specifically, the Chamber is urging the government to exempt these companies from paying Value Added Tax (VAT), which they believe will help strengthen the mining sector’s sustainability and growth prospects. This was announced during the Chamber’s 97th Annual General Meeting held on May 30, 2025.
Michael Edem Akafia, the President of the Chamber, articulated the necessity of incentivizing exploration over imposing financial burdens. He touched on the importance of exploration as foundational for the future of the mining industry. “This gathering not only reflects on the state of our industry,” Akafia pointed out, “but also reaffirms our commitments to advancing the socio-economic transformation of our country through sustainable mineral development.”
During his remarks, Akafia highlighted the several challenges the industry faces, which includes policy uncertainty, environmental concerns, and illegal mining activities. He also cited potential risks from global inflation and supply chain issues that could impact growth into 2025. Despite these daunting factors, he expressed optimism about the mining sector, particularly gold production, remaining a key economic driver for Ghana.
Ghana has managed to strengthen its position as the premier gold producer in Africa, with national gold output surging by 19.3 percent from 2023 to 2024. Akafia emphasized that the expansion of mining and quarrying—almost 10 percent growth in 2024—has played a crucial role in boosting the nation’s GDP, markedly improving from a mere 1.7 percent rise the previous year.
Furthermore, he reiterated the Chamber’s firm stance on the need for enhanced government security measures to guard against illegal mining that threatens legitimate operations. The President remarked, “Our growth prospects may face downside risk from these happenings… Ghana is clearly not immune to these developments. However, with the right policy support, including the removal of VAT on exploration activities, we can consolidate the gains made so far.”
The Annual General Meeting saw participation from influential figures in the mining industry including government representatives, business leaders, and media personnel, reflecting the gathering’s significance in discussing the future of mining in Ghana.
In summary, the Ghana Chamber of Mines is pushing for exempting exploration companies from VAT as part of a broader strategy to enhance investment within the nation’s mining sector. The Chamber’s leadership believes that sustainable policies and incentives are key to maintaining growth and addressing challenges facing the industry.
In conclusion, the Ghana Chamber of Mines is advocating for the removal of VAT for exploration companies to boost investments in the sector. The annual meeting highlighted the industry’s resilience amidst various challenges, emphasizing sustainable practices and government support for ongoing growth. The Chamber’s message resonates with the urgency to solidify Ghana’s status as a leading gold producer in Africa, ensuring a bright future for the mining landscape.
Original Source: asaaseradio.com
