Ghana is the second-largest gold producer in Africa. In 2012, the mining sector alone contributed 27% of the total tax and 6% of the country’s Gross Domestic Product while corporate tax exceeded royalties for the first time. The extractive sector accounted for 56% of exports in 2011, up from 12% in 2010 due to oil discoveries. However, its overall contribution to state revenues is relatively small, leading the government to change royalties for most commodities (including gold) from a variable 3% to 6%, to a flat 5% in 2011. But this looks set to be offset by falling commodity prices, especially gold, as the government’s deficit continues to widen.
Oil production began in 2011. Oil revenues have probably already surpassed mining receipts, and gas production looks promising in the future. Ghana is revising its Exploration and Production Bill, a piece of legislation designed to strengthen regulation of Ghana’s extractive sector, management of oil blocks, inspection requirements and management of the social and environmental impact of the extractive industries. This builds on a fairly sound legal and policy framework for mining which mostly drives its reasonable performance on RWI’s index (15/58). However, it is too soon to assess its implementation in the oil sector.
The 2010 and 2011 EITI Reports were published in February 2013. These include oil and gas revenues, production volumes, mineral export values, the names of companies operating in the country, production data by company, production stream values, royalties, special taxes, dividends, license fees and acreage fees. Information on applications for mining concessions is available for a fee, but there is no clear explanation of how licenses are allocated. Mining contracts are not published and it is difficult to evaluate the actual fiscal terms that apply to companies. However, the Jubilee Field oil contracts are available on government websites. There is therefore further room to strengthen links between EITI and other efforts such as the work of the Public Interest and Accountability Committee, the Inter-Ministerial (Energy and Natural Resources) Committee, the Global Anti-corruption Commission and the Parliament.
The EITI Board has approved the transition arrangements for the EITI Standard. For Ghana it is required that the 2012 Report is published in accordance to the EITI Standard by 31 December 2014.
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Check Ghana EITI workplan 2014-2015.
- EITI Reports include elements of auditing in addition to the reconciliation of payments and revenues.
- EITI Reports include transfers to sub-national levels of government and utilisation of transferred funds.