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.
Ghana has reportedly lost $6.56 billion annually in potential mining revenue due to the government's limited involvement in the sector, according to the Institute for Fiscal Studies (IFS). In a policy briefing held in Accra, Dr. Said Boakye, the Institute's Executive Director, stated that if Ghana had matched Botswana's mining revenue performance, it could have generated an additional $8.16 billion in 2025.
Dr. Boakye identified tax evasion, underreporting, tax avoidance, and collusion among revenue administrators as major contributors to revenue leakages. The country's revenue and grants-to-GDP ratio was 15.7% in 2022, below the sub-Saharan African average of 20.1%. Ghana ranked 18th among 25 countries in terms of revenue mobilisation.
Dr. Boakye suggested the government to increase its direct involvement in the extractive sector through partnerships or production-sharing agreements, as well as intensify efforts to combat corruption within tax and non-tax revenue collection agencies.
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