Policy uncertainty and high legal risks are key structural factors which continue to weigh on the business climate in the extractive sectors in sub-Saharan African countries including Ghana, over the medium-term.
According to the ratings agency, Fitch, increased government intervention complicates business climate in mining sectors
In January 2020, the Chief Executive Officer of the Ghana Chamber of Mines declared that VAT and other taxes on mining exploration should only be paid once commercially viable finds are made, otherwise greenfield investment will be impacted.
This incentive, Fitch said, bodes well for additional exploration activity in the country and will attract more foreign investors into the industry, given the country’s largely untapped extractive sector as well as its actions to reduce the risk of illegal mining and business-friendly regulations.
Story by Naa Anyema Collison