Ghana Chamber of Mines Urges Government to Relieve Exploration…

The Ghana Chamber of Mines has urged the government to eliminate VAT for exploration companies to enhance investment. President Michael Edem Akafia highlighted the importance of incentivizing exploration for the long-term sustainability of the sector. The move is seen as crucial in light of macroeconomic challenges, while also addressing the need for stronger security measures against illegal mining.

The Ghana Chamber of Mines is advocating for the government to exempt exploration companies from paying Value Added Tax (VAT). This initiative is crucial in boosting investments in mineral exploration while also ensuring the long-term sustainability of the sector, a sentiment that echoes the Chamber’s commitment to the socio-economic advancement of Ghana. The call for relief from VAT comes amid rising concerns over various economic challenges facing the mining industry.

During the Chamber’s 97th Annual General Meeting held on May 30, 2025, President Michael Edem Akafia underscored the importance of exploration for the sector’s future. He argued that exploration should be incentivized rather than burdened. Akafia noted, “This gathering… reaffirms our commitments to advancing socio-economic transformation of our country through sustainable mineral development.”

While addressing the current issues, Akafia also acknowledged the macroeconomic and geopolitical uncertainties, including global inflation and supply chain disruptions, that threaten growth in 2025. Despite the challenges, he expressed optimism about the mining sector’s resilience, particularly regarding gold production, which he indicated remains a significant pillar of the economy.

He highlighted impressive figures, mentioning that Ghana’s gold output increased from 125.6 tonnes in 2023 to 149.8 tonnes in 2024, securing its title as Africa’s leading gold producer. The broader economic impact was evident as well, with the mining and quarrying sector growing nearly 10 percent in 2024, a notable increase compared to 1.7 percent in the previous year.

To summarize, the Ghana Chamber of Mines is pushing for the government to remove the VAT on exploration activities to foster investment in the mining sector amid existing challenges. Chamber President Michael Akafia has emphasized the necessity for exploration to be financially supported, recognizing the macroeconomic hurdles but expressing a degree of optimism about the industry’s growth. With calls for better security measures and policy adjustments, the Chamber aims to solidify mining’s role in the nation’s economy moving forward.

Original Source: asaaseradio.com