IFS Estimates Ghana Lost $6.56 Billion in Mining Revenue

The Institute for Fiscal Studies (IFS) estimates that Ghana lost US$6.56 billion in potential mining revenue in 2025. In a policy brief presented in Accra, the institute reported that Ghana generated only US$1.60 billion from a sector value-added of US$13.40 billion. The IFS noted that applying Botswana's average revenue-to-value-added ratio of 60.9% would have yielded US$8.16 billion instead.

Executive Director Said Boakye attributed the shortfall to limited government participation in mining, persistent revenue leakages, and excessive tax exemptions for foreign investors. He contrasted Ghana's concession-based system with Botswana's active government partnerships. Beyond mining, the IFS found that Ghana's total revenue and grants-to-GDP ratio of 15.7% falls below the Sub-Saharan African average of 20.1%.

The institute also highlighted significant losses at ports, citing a disclosure from Ghana Revenue Authority Commissioner-General Anthony Sarpong that GH¢11 billion was lost through incorrect declarations. To rectify these deficits, the IFS recommends that the government adopt production-sharing agreements in the extractive sector, review tax incentive packages under the Free Zones Act and the Ghana Automotive Development Policy, and intensify anti-corruption efforts within revenue collection agencies.