Ghana loses $6.5bn in potential mining revenue – IFS
The country loses an estimated $6.56 billion in potential revenue from the mining sector every year due to the government’s limited participation in mineral extraction, the Institute for Fiscal Studies (IFS) has revealed.
The Institute for Fiscal Studies (IFS) has revealed that Ghana loses $6.56 billion each year in potential mining revenues due to the government's limited involvement in the sector. Dr Said Boakye, the institute's Executive Director, stated this at a policy briefing in Accra, highlighting the opportunity for Ghana to have collected $288.26 billion in revenue and grants in 2025 if its revenue-to-GDP ratio had matched the regional average.
This analysis places Ghana 18th among 25 sub-Saharan African countries, with its mining sector only generating $1.6 billion compared to Botswana's $13.4 billion. The major factors contributing to this revenue shortfall include tax evasion, underreporting, tax avoidance, and collusion involving revenue administrators. Dr Boakye recommended greater government participation in the mining sector through direct investment, partnerships, and production-sharing agreements, while also calling for an end to excessive tax exemptions.
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