Accra: The Ghana Chamber of Mines has raised concerns that proposed fiscal measures could undermine Ghana's competitiveness in the mining sector, potentially driving investment to neighboring C´te d'Ivoire. The warning comes as C´te d'Ivoire is seen as a significant beneficiary of the situation.
According to Ghana Web, the President of the Ghana Chamber of Mines, Michael Edem Akafia, emphasized during an interaction with journalists from the African Extractives Media Fellowship that fiscal decisions which fail to balance government revenue objectives with industry sustainability could lead to job losses, project cancellations, and capital flight. He highlighted the risks associated with burdening mines that are either newly established or currently unprofitable.
The Chamber of Mines has already submitted a position paper detailing the projects and employment opportunities at risk. Akafia noted that excessive fiscal pressure could shrink the mining sector, ultimately reducing government revenue. He stressed that maintaining competitiveness should be the guiding principle for policy decisions in the sector.
Akafia pointed out that C´te d'Ivoire is becoming a formidable competitor for mining investment. He mentioned the case of Ken Ross, a major global mining company, which exited Ghana to invest in C´te d'Ivoire, and Endeavor, which also chose to remain in C´te d'Ivoire after leaving Ghana. He warned that investor sentiment against Ghana is becoming entrenched, with industry players abroad expressing reluctance to invest in the country.
The Chamber of Mines' position underscores the need for policies that prioritize long-term competitiveness over immediate revenue gains in the mining industry.