The Chief Executive Officer of the Ghana Chamber of Mines, Ing. Kenneth Ashigbey, has cautioned that frequent changes to Ghana’s fiscal policies are making it increasingly expensive for mining companies to secure funding for projects.
Speaking during an interview on Monday, Ing. Ashigbey said uncertainty surrounding future tax and fiscal measures makes it difficult for mining investors to accurately determine the potential costs and returns of their investments.
He explained that while investors can incorporate existing tax rates into their financial models, the possibility of sudden policy changes creates uncertainty about the figures that should be used when seeking financing.
According to him, this unpredictability increases the risk associated with investing in Ghana’s mining sector and ultimately drives up the cost of accessing capital.
Ing. Ashigbey stressed that stability agreements are therefore important because mining projects typically require substantial amounts of capital long before they begin generating revenue.
He cited a Newmont mining project as an example, noting that the company invested more than $1 billion before producing its first ounce of gold. Such investments, he said, require long-term assurances that the fiscal environment will remain sufficiently predictable.
He noted that investors are responsible for safeguarding funds entrusted to them and therefore need confidence that their investments can generate reasonable returns under a stable policy environment.
However, Ing. Ashigbey acknowledged that government also has a responsibility to protect the country’s fiscal interests, particularly during periods when international commodity prices increase significantly.
He proposed that instead of frequent policy adjustments, government could establish clear conditions and measurable investment milestones for companies seeking fiscal stability agreements.
Such an approach, he said, would provide investors with the certainty needed to commit large amounts of capital while allowing government to protect its revenue interests.
He maintained that greater predictability in fiscal policy would help strengthen investor confidence and support long-term growth in Ghana’s mining industry.
