Ghana is the second-largest gold producer in Africa and 8th largest globally. In 2013, the mining sector alone contributed 10% of the country’s Gross Domestic Product, and oil and mining together accounted for 66% of exports (Source: EITI Reports 2012-2013).
Falling gold prices have affected mining revenue. However, this has been offset by a hike in oil revenue and production. Current lower oil prices may however have an effect on government revenue.
Oil production began in late 2010. The Jubilee field, discovered in 2007, is the largest offshore oil discovery in West Africa over the last decade. Oil revenues have 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 the Resource Governance Index (15/58). However, it is too soon to assess its implementation in the oil sector.
Find out more about Ghana's extractive industries from Ghana's extractives dashboard
Ghana’s 2014 EITI Reports were published in December 2015. The reports how that revenue reached a record high of USD 1.3 billion in 2014, with about 75% of extractive sector revenue coming from oil and gas. The 2012 and 2013 reports published in December 2014 improved the timeliness of EITI reporting significantly. Petroleum sector data and mining sector data were published in two separate reports.
The oil and gas report includes innovative aspects such as information on the allocation of revenue between the state budget and the petroleum funds, and an assessment of the petroleum funds’ performance. Production is recorded company-by-company and the state-owned company GNPC’s liftings and expenditure are disclosed.
The mining report shows that recommendations made in the 2011 EITI Report have led to improvements in tracking the use of revenue on the local level but that disbursements to districts were minimal in 2012 and 2013.
There is further room to strengthen links between EITI and other efforts such as the work of the mining cadastre, Public Interest and Accountability Committee, the Petroleum Commission, the Inter-Ministerial (Energy and Natural Resources) Committee, etc. The GHEITI Secretariat together with GIZ are conducting an impact assessment of the ten years of EITI in Ghana.
There are a number of issues that require attention in order for Ghana to meet the requirements of the EITI Standard in its upcoming reports. These include tidying up the license register and allocation of licenses, ensuring full coverage of state-owned enterprise ownership, as well as sales and expenditure figures, mapping expenditures mandated by law, and a more comprehensive coverage of subnational payment arrangements.
Further information on subnational payments are available in this blog by National Coordinator Franklin Ashiadey: Improving the impact of mining royalties at the local level in Ghana
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