Ghana — Africa’s top gold producer — is undertaking a major overhaul of the mining sector by scrapping long‑term investment stability pacts and doubling royalty rates, according to regulators. The proposed reforms, expected to be tabled in Parliament by March 2026, aim to ensure Ghana retains a larger share of revenue from soaring global gold prices.
Mining equipment and heavy machinery
Under the plan, traditional stability agreements that locked in tax and royalty terms for up to 15 years will be phased out, starting with the expired Newmont pact and followed by others by 2027. These agreements, once used to attract foreign investment, have faced criticism for limiting government revenue despite rising bullion prices.
Royalty rates under the new regime would start at 9 percent and rise to 12 percent if gold prices exceed $4,500 an ounce — roughly double Ghana’s current 3‑5 percent range. The reforms also include stricter local‑content rules to prioritise procurement from Ghanaian businesses.
Government officials say these changes will boost national benefits from the mining sector while maintaining profitability for foreign firms. However, smaller and emerging miners have expressed concern about potential cost increases under the new structure. Despite this, regulators argue that mining remains lucrative even with tougher terms.
Supporters believe that this policy shift could strengthen Ghana’s economic sovereignty and ensure that the country captures more value from its significant gold resources in a changing global market.
