Ghana has announced a mining sector tax reform abolishing value-added tax (VAT) on mineral exploration and reconnaissance activities in a bid to attract greater investment.  

The move, revealed by the country’s Finance Minister, Cassiel Ato Forson, comes as Ghana, Africa’s leading bullion producer, seeks to reverse more than two decades of limited new mining development, reported Reuters. 

The 15% VAT was introduced 25 years ago as part of wider fiscal reforms, and was applied to exploration-related expenses such as drilling and assay work.  

This increased upfront costs for companies operating in the high-risk early phases of mining projects.  

Industry groups including the Ghana Chamber of Mines have argued that the tax discouraged greenfield investment and undermined Ghana’s competitiveness compared to countries like Ivory Coast, Burkina Faso and Kenya, where exploration is exempt from VAT. 

During the 2026 budget presentation, Ghana Finance Minister Cassiel Ato Forson said: “Abolishing VAT will revive investor confidence, stimulate greenfield activity and ensure the long-term sustainability of the country’s mining sector.” 

Forson added that the measure, part of a broader VAT review, is intended to promote responsible mining and curb unregulated prospecting, which has degraded forests and waterways. 

The policy change follows record small-scale gold exports from Ghana between January and October.  

According to Finance Ministry data, shipments jumped to 81.7 tonnes (t), worth around $8.1bn (88.9bn cedis), surpassing large-scale exports of 74.1t valued at $6.6bn for the first time.  

Ghana targeted total gold output of approximately 144.5t in 2025.  

Forson further added that the surge reflects the impact of recent regulatory reforms that have formalised artisanal mining and tightened export controls. 

The Ghana Chamber of Mines also welcomed the government’s decision to remove VAT on exploration.  

Ghana Chamber of Mines president Michael Akafia told Reuters: “VAT on exploration negatively affected our competitiveness as a mining jurisdiction and was a clog on the pipeline of projects.”

Ghana’s mining industry generates more than one-third of the country’s export revenues, dominated by gold alongside bauxite and manganese.  

The government initiated an audit this month as part of wider reforms aimed at increasing earnings from the industry.  

Major operators in Ghana include Newmont, AngloGold Ashanti, Gold Fields, Perseus, and China’s Zijin and Cardinal Namdini.