New Tax Threatens Profitability of Ghana’s Gold Mining Industry

• Ghana’s new Growth and Sustainability Level (GSL) tax increases production costs by 10%, raising the average tax rate in the mining sector to over 65%.
• The tax could undermine Ghana’s status as a leading gold producer by affecting industry profitability and competitiveness.

Ghana, renowned as Africa’s top gold producer, is encountering a significant challenge in its mining sector. The introduction of the Growth and Sustainability Level (GSL) tax by the government, part of its IMF program requirements, has escalated production costs dramatically and threatens to diminish the industry’s profitability and competitiveness.