The Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah, has urged all Ghanaians to unite in the fight against illegal mining, commonly known as galamsey, emphasizing that the battle can only be won through collective action.
Speaking to the media ahead of the 2025 budget presentation, the Minister stressed that mining can be conducted responsibly without polluting water bodies, degrading land, or harming the environment.
He reiterated the government’s commitment to enforcing sustainable mining practices to safeguard Ghana’s natural resources.
Hon. Armah-Kofi Buah also expressed optimism about the budget, stating that the Mahama-led administration is poised to usher Ghanaians into an era of economic prosperity. “We will see a future of hope and prosperity with this government,” he said.
He further noted that the government’s economic strategy would focus on revenue mobilization, prudent expenditure, and fiscal discipline, ensuring that the country “lives within its means.”
Key Budget Announcements on Mining and the Economy
Presenting the 2025 Budget in Parliament, Minister for Finance Dr. Cassiel Ato Forson announced the abolition of the 1.5% withholding tax on the mining of unprocessed gold by small-scale miners. He emphasized that removing such “nuisance taxes” would ease financial burdens on households, enhance disposable incomes, and stimulate business growth.
Dr. Forson also outlined plans to review key legislations, including the Minerals Income Investment Fund Act, 2018 (Act 978), to align with policies aimed at stabilizing the economy and promoting inclusive growth.
As part of measures to strengthen the cedi, the government will establish a Gold Board to enhance foreign exchange generation and accumulation. The Finance Minister noted that despite Ghana’s vast natural resources, the country has not fully capitalized on its extractive sector to maximize revenue and economic benefits.
While global gold prices have surged, Ghana has struggled to leverage this advantage. Dr. Forson revealed that although the Natural Resource Rent—the economic surplus from resource extraction—is estimated at 14% of GDP, the extractive sector currently contributes only 1.5% of GDP due to inefficiencies in capturing economic rent.
To address this, the government is proposing an increase in the Growth & Sustainability Levy from 1% to 3% on the gross production of mining companies, ensuring the nation benefits from rising gold prices. Additionally, the sunset clause on this levy will be extended to 2028.
Boosting Small-Scale Gold Mining
The Finance Minister also announced a US$279 million revolving fund for the Ghana Gold Board (GOLDBOD) to facilitate the purchase and export of at least three tonnes of gold per week from small-scale miners. This initiative is expected to enhance the sector’s contribution to the economy while providing stability for local miners.
The 2025 Budget reflects the government’s broader agenda of stabilizing the economy, boosting revenue from the extractive industry, and promoting responsible mining practices. With strengthened policies and renewed commitment, the administration aims to curb illegal mining and position the mining sector as a major driver of Ghana’s economic growth.
