Ghana has removed a 15% VAT on mineral exploration and reconnaissance, a move designed to attract fresh investment into its mining sector. The tax, previously applied to high-risk early-stage activities such as drilling, assay work, and geological surveys, had discouraged companies from pursuing new projects. Finance Minister Cassiel Ato Forson confirmed the change during the 2026 budget announcement, emphasizing that the policy aims to make Ghana more competitive regionally and globally.
The decision is expected to have wide-ranging impacts. With small-scale gold exports already reaching 81.7 metric tons between January and October 2025 — surpassing large-scale mine output for the first time — the removal of the tax could encourage more “greenfield” exploration and the discovery of new deposits beyond gold, including bauxite, manganese, and lithium. Analysts predict that this could generate thousands of new jobs, attract foreign direct investment, increase tax revenues from future production, and enhance local infrastructure in mining regions. Environmentally, if paired with strict sustainability regulations, the policy could promote responsible exploration and technology adoption, while economically it strengthens Ghana’s position as a leading minerals hub in Africa. More