The Minority in Parliament has issued a stern rebuke of the Mahama-led administration’s recent actions in the mining sector, cautioning that the government's approach risks damaging Ghana’s reputation as a stable and attractive destination for foreign investment.

In a detailed five-page letter dated April 21, 2025, and addressed to the Ministers of Finance and Lands and Natural Resources, the Minority Caucus warned that a series of policy decisions in recent months could erode the significant gains made in attracting foreign direct investment (FDI), particularly in the gold mining industry.

The letter, signed by Ranking Member on the Economy and Development Committee Kojo Oppong Nkrumah, Ranking Member on the Lands and Natural Resources Committee Kwaku Ampratwum Sarpong, and Ranking Member on the Finance Committee Dr. Mohammed Amin Adam, outlined what the MPs described as a troubling pattern of policy missteps that have sent negative signals to the investor community.

“These actions have generated high levels of discomfort among investors and have the potential to swiftly erode the progress Ghana has made in attracting foreign direct investments,” the letter stated.

At the heart of the Minority’s concerns is the introduction of new tax measures under the 2025 revenue framework, including a two percent Growth and Sustainability Levy on gross mining volumes and another levy set to take effect from 2026 through 2028.

The lawmakers argue these measures function similarly to royalties and disproportionately impact companies already under financial strain, potentially leading to operational losses and job cuts.

The letter also criticises the recently passed GOLDBOD Act, which bans all foreign investors from participating in gold trading and exports.

The Minority claims the legislation was pushed through Parliament despite their objections and contravenes Article 107(b) of the Constitution, which prohibits retroactive laws that affect accrued rights.

“Following these levy increases, the Government secondly announced the enactment of the GOLDBOD Act which… has since been announced to have banned all foreign investors involved in gold trading and exports,” the statement reads. “This could set a dangerous precedent and heighten investor anxieties about the security of their investments.”

The Minority also criticised the government’s decision to refuse a lease renewal for Goldfields Ghana Limited, arguing that a renegotiation would have served the country better than outright rejection.

They contend that such decisions risk driving away established investors and undermining future revenue flows.

They further expressed alarm over the reported diversion of 80 percent of inflows meant for the Minerals Income Investment Fund (MIIF), which they say weakens the government’s commitment to strategic investment in the mining sector.

“Investors and potential investors are being informed that the state does not have skin in the game,” the letter said.

“This sends a signal that Ghana is retreating from its commitment to owning a larger share of its mining resources.”

In addition to fiscal and legislative concerns, the letter cited recent security issues, including a deadly attack on a mine that claimed eight lives.

The Minority partly attributed the incident to inflammatory rhetoric targeting foreign investors and warned that a lack of accountability in such cases could fuel further insecurity in the sector.

The Minority also blamed the resurgence in illegal mining (galamsey) activities on the government’s decision to abolish the Community Mining Schemes.

They argued that instead of scrapping the schemes, the government should have reformed and corporatised them to ensure greater accountability.

They noted that the proposed alternative—Mining Cooperatives—remains vague and poorly implemented, creating a vacuum that illegal miners are now exploiting.

“The reasons provided by the Minister for Lands for banning the Community Mining Schemes were unconvincing,” they stated.

“We are not surprised that galamsey activities have increased.”

The Minority concluded their letter by urging the government to urgently revise its policies in the mining sector. They warned that the current trajectory could lead to job losses, halted projects, and long-term reputational damage to Ghana’s economy.

“Given the economic challenges Ghana currently faces, it is more important than ever that we implement policies that attract—not repel—investment,” the lawmakers emphasised.