Parliament approves Growth and Sustainability Levy (Amendment) Bill, 2026

Parliament last Friday approved the amendments to the Growth and Sustainability Levy (Amendment) Bill, 2026, meant to enable the country to maximise benefits from its natural resources.

The bill will create a fairer fiscal framework that maximises the country’s benefits from its natural resource wealth, while maintaining a competitive investment environment for mining companies.

It will reduce the levy imposed on gold mining companies from three per cent to one per cent of gross production.

This followed the introduction of a new minerals and mining royalties regime designed to capture greater value for the state when global gold prices rise.

Justifying the rationale for reducing the growth and sustainability levy, the Deputy Minister of Finance, Thomas Nyarko Ampem, told the House that the changes were part of a broader effort to recalibrate Ghana’s fiscal regime for the mining sector to ensure that the country secured a stronger share of revenues from its mineral resources without undermining investor confidence.

He said the amendment followed the introduction of the Minerals and Mining Royalty Regulations, 2025, which established a sliding-scale royalty system linked directly to international gold prices.

Royalty

Under the new framework, royalty payments would automatically increase when global gold prices rise, thus allowing the state to capture higher revenues during periods of strong commodity markets.

“The earlier decision in 2025 to raise the Growth and Sustainability Levy from one per cent to three per cent was intended to compensate for the absence of a windfall tax mechanism in the mining sector.

The sliding-scale royalty structure, he explained, allowed Ghana to progressively increase its share of mining revenues as gold prices soared.

Under the system, when gold prices hovered around $1,900 per ounce, the royalty rate stood at five per cent.

The rate, he said, increased to six per cent when prices rose to between $1,900 and $2,000, and could reach as high as 12 per cent if prices exceeded $4,500 per ounce.

He was optimistic that the revised framework would ensure that Ghana benefited more from its natural resources during periods of high commodity prices while still providing fiscal certainty for mining investors.

“We do not make laws to favour individuals or particular companies.

The objective is to create a framework that enables Ghana to take maximum advantage of its natural resources,” he said.

Caution

In a reaction, the Minority Leader, Alexander Afenyo-Markin, expressed reservations about the potential impact of the reforms on the mining sector.

He cautioned that sudden changes in the fiscal regime could make Ghana less attractive as a mining destination and potentially threaten jobs in the sector if companies decided to scale back their operations.

He, therefore, urged the House to delay its third reading for further scrutiny.

He explained that, despite the sound rationale behind the bill, the sliding-scale royalty mechanism could discourage investors from entering the mining sector.