Accra: The government must urgently develop a clear strategy to mobilise more revenue from the small-scale gold mining sector, the Institute of Fiscal Studies (IFS) has said. The Institute highlighted that although small-scale mining is contributing significantly to Ghana's gold exports, it is not generating equivalent fiscal returns for the country.
According to Ghana Web, the Executive Director of IFS, Dr. Said Boakye, made the call during the Institute's assessment of the 2026 Mid-Year Budget Review and Economic Policy of the government. He pointed out recent developments in the gold industry, such as the Domestic Gold Purchase Programme and the establishment of the Gold Board, which underscore the revenue potential of the small-scale mining sector.
Ghana's gold exports more than doubled in 2025, increasing by 103.3 percent from $10.31 billion in 2024 to $20.98 billion. Small-scale miners contributed $10.8 billion, representing 51.5 percent of total gold exports, Dr. Boakye said. However, mineral royalties saw only a 21 percent increase, from $364 million in 2024 to $441 million in 2025. Information from the Minerals Income Investment Fund indicated that these royalties were solely from the large-scale mining sector.
Dr. Boakye highlighted a significant weakness in Ghana's mining fiscal regime, where corporate income tax and other revenue measures yield little from the small-scale mining sector. He emphasized that the government needs to address this issue, especially as the country is under pressure to increase domestic revenue and meet financial commitments.
The IFS did acknowledge some positive economic developments in the first half of 2026, noting that inflation remained relatively low despite recent increases, and interest rates declined significantly. The 91-day Treasury Bill rate dropped to 5.7 percent in June 2026, from 28 percent in December 2024, and the average lending rate fell to 15.6 percent from 30.3 percent over the same period.
The Institute welcomed the government's decision to extend the new commitment authorisation system to State-Owned Enterprises (SOEs), considering the impact of poorly performing SOEs on Ghana's debt issues. Despite these gains, the IFS criticized the execution of the 2026 budget, noting a GHS35.6 billion shortfall in total expenditure, representing 20.6 percent, and a GHS14.35 billion shortfall in capital expenditure. Arrears payments also fell short by GHS8.64 billion, or 61.8 percent, which could hinder economic activity and growth.
The IFS raised concerns about unrealistic revenue and Gross Domestic Product (GDP) projections, as well as inconsistencies in budget documents. It urged the government to improve budget execution, align spending with approved plans, and implement effective mechanisms to capture substantial revenues from the small-scale gold mining sector.