Historically Ghana is a mining country, with substantial reserves it is the second largest gold producer in Africa. Ghana has the ninth largest reserves of diamonds and is the ninth largest producer of diamonds in the world.Oil production started in 2011, and as of 2013 oil revenues surpassed mining receipts.
EITI reporting has highlighted gaps in the way the extractive sector is managed, leading to changes to the fiscal regimes governing the sector such as the introduction of capital gains tax, higher ground rent and fixed royalty rates. GHEITI is also working to improve accountability of subnational transfers, as 10% of mining royalties are transferred to local governments.
Objectives of beneficial ownership transparency in Ghana
- To promote good governance and accountability in the extractive sector and beyond.
- Support efforts to minimize and ultimately eradicate the risk of money laundering, financing of terrorism, financing the proliferation of mass destruction and other transnational organised crime.
- Prevent illicit financial flows in the extractive and other sectors.
Progress on implementing beneficial ownership disclosure
Ghana EITI has been building momentum for the beneficial ownership transparency agenda in the country. The passage of the Companies Act 2016 lays a firm legal basis for collecting and maintaining a national database on beneficial owners in Ghana. The law mandates the Registrar General’s Department to be the institutional body responsible for the collection and maintenance of beneficial ownership register in the country.
Ghana’s 2015 EITI Reports on oil/gas and mining give some information about the legal and owners non-listed companies operating in the country. For publicly listed companies, the reports reference the relevant stock exchanges and listing symbols.
GHEITI will also continue to collect beneficial ownership information from companies and other government stakeholders, if available until the abovementioned mechanism becomes fully operational. Although the EITI Standard’s deadline for beneficial ownership disclosure is 2020, GHEITI expects the RGD Beneficial Ownership disclosure mechanism to be fully operational before 2020. Read Ghana's beneficial ownership roadmap below for more information.
Ghana is the second largest gold producer in Africa and ninth largest in the world.In 2015, there was a mixed performance in the production of the traditional minerals. Gold and diamonds production dropped while manganese and bauxite production increased. A total of 3,623,740 ounces of gold was produced representing 18.96% from 4,471,573 ounces in 2014. The reduction in production was partly due to the suspension of mining activities by AngloGold Obuasi; general price decline in gold prices; persistent power outages and its consequential impacts on the cost of doing business in Ghana.
Oil production began in late 2010, and the Jubilee Field is the only major producing field, estimated to hold about 460 million barrels of crude oil and 568 billion cubic feet of natural gas.In 2015, the total crude oil and gas produced in Ghana were 37,437,114 BBLS and 52,568 MMSCF respectively.
Ghana is endowed with mineral resources such as gold, diamonds and manganese, oil and gas. The Jubilee Field, discovered in 2007, is the largest offshore oil discovery in West Africa over the last decade, estimated to hold between 600 million and 1.5 billion barrels.
|Gas||63.8||million cubic meters|
|Gold||1 600||Tons||Ghana has 3.1% of the world's gold reserves|
The mining sector contributed GH¢1,285 million to Government revenue in 2015 as against GH¢1,193 million in 2014. This represented an increase of 7.79%.Earnings from minerals exported in 2015 amounted to US$3,322.61 million compared to US$ 4,516.29 million earned in 2014. This shows a decrease of 26.43%. Of the total earnings from mineral exports in 2015 (US$ 3,322.61), gold accounted for US$ 3,212.59 million (96.68%), bauxite exports were US$ 41.06 million (1.24%), diamonds contributed US$ 4.22 million (0.31%) and Manganese brought in US$ 64.74 million (1.95%).
The Government of Ghana received US$396.17million from petroleum revenues in 2015. It includes US$20.41 million in Corporate Income Tax (CIT), US$465,920 in Surface Rentals (SR), US$553,815.32 from gas sales, US$419,387 as price differential from 2014 and US$30,468 as returns on investment.
Ghana's national oil company GNPC represents the country’s interest in the oil sector by engaging in exploration, development, production, and disposal of hydrocarbon resources on behalf of the state. GNPC sells its production share and royalties collected in-kind from other companies on behalf of the state to commodity trading companies.
Ghana committed to participate in EITI's targeted efforts to improve commodity trading transparency during the Anti-Corruption Summit in London (May 2016), and GHEITI has prepared a programme for their work on commodity trading transparency. In 2018 Ghana will participate in the EITI’s pilot project in commodity trading. This will be an opportunity to deepen its work on the disclosure of information on the state’s in-kind revenues beyond what is currently disclosed in the EITI Report or required by the EITI Standard.
Oil and gas revenues are, in part, allocated to the Ghana Petroleum Fund and 10% of mineral royalties are allocated to the Mineral Development Fund.
Subnational governments receive royalties and taxes from mining companies, constituting roughly 40% of their budgets. Ground rent payments and 10% of mineral royalties are paid directly to District Assemblies or to the Office of the Administrator of Stool Lands, which then transfers the revenue to local governments.
Ghana’s EITI Reports have provided recommendations aimed at addressing gaps in the legal and fiscal frameworks governing the extractive sector. Some examples have been related to streamlining fiscal policies, ensuring open licensing rounds, establishing an online repository on petroleum blocks, developing an investment guide for the Ghana Petroleum Funds, publishing an investment plan for the GNPC, and harmonising the methodology the revenue authority and GNPC use for revenue computation to ensure that figures match. GHEITI has followed up on many of these recommendations, which has resulted in policy changes such as the introduction of capital gains tax, higher ground rent for mining and a fixed royalty rate.
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
- EITI Reports include useful recommendations for how to improve governance in the extractives sector, including on the existing fiscal regimes, licensing and revenue management.
- EITI Reports include transfers to subnational levels of government and utilisation of transferred funds.The mining reports show that recommendations 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.
- Ghana EITI is making efforts to include artisanal mining in their mining reports.
- The oil and gas reports include information on the allocation of revenue between the state budget and the petroleum funds, an assessment of the petroleum funds’ performance, and information on GNPC’s liftings and expenditure.
Ghana EITI’s objectives are to provide public insight to revenues from the country's mineral resources, and to create a platform for public debate about spending of extractive sector revenues. Ghana EITI organises various workshops and community meetings around the country to raise awareness about how the extractive resources are managed. Some of the issues that have been raised are transfer pricing, local content and beneficial ownership. Read more in Ghana EITI's 2015 Annual Progress Report »
Ghana was found to have achieved meaningful progress in implementing the EITI Standard. View more information under the Validation section of this page or go to the Board's decision in full. Previously, the country was compliant under the 2011 Rules.
Ghana submitted an extension request for the publication of their 2015/2016 EITI in January 2018 which was approved.Ghana submitted the Mining and Oil Reports on 1 May and will be Validated on the 8 September 2018.
The government announced its intention to join the EITI in 2003. A multi-stakeholder group, the National Steering Committee, was established by ministerial decree in 2005 and currently operates under the Rules of Procedure (2010). An EITI secretariat was formed in the Ministry of Finance and Economic Planning and is a subset of the National Steering Committee. A GHEITI Bill aimed at enforcing the reporting requirements and institutionalising the Ghana EITI process has been drafted and is yet to be passed in parliament.
The Ghana Extractive Industries’ Transparency Initiative (GHEITI) engaged Messrs Boas & Associates to produce EITI report on mining payments for the period covering Jan-Dec 2015.The country has large-scale mining companies producing gold, diamonds, bauxite, and manganese. There is also significant small-scale and artisanal mining activities in Ghana.In 2015 the Mining industry accounted for 1.2 % of the country's GDP and minerals made up 31% of total exports, of which gold contributed about 96% of the total mineral exports. Gold remains the leading mineral in revenue generation.
The Ghana Extractive Industries’ Transparency Initiative (GHEITI) engaged Messrs Boas & Associates to produce EITI report on Oil and Gas payments for the period covering Jan-Dec 2015. The Petroleum sector makes a significant contribution to Ghana’s economy. In 2015, crude oil exports contributed 18.7% of the total merchandise export, 4.1% of Ghana’s GDP, and generated US$396million in revenues to the state.
Ghana's Validation commenced on 1 July 2016. On March 8 2017, the EITI Board found that Ghana has made meaningful progress in implementing the 2016 EITI Standard.
The following documentation laid the basis for the Board's decision, attached below:
Initial data collection by the International SecretariatGhana EITI (GHEITI) comments on the initial assessmentValidation Report by the independent Validator SDSG Ghana EITI multi-stakeholder group's comments on Validation Report
Find out more about the result of Ghana's Validation:
This is the Ghana EITI 2015 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
Ghana EITI conducted a series of workshops in April 2016 to consult with state and non-state actors on beneficial ownership transparency and the establishment of a beneficial ownership registry. This is the report containing the results of the workshops.
The EITI requirement 1.5 mandates the Multi-Stakeholder Group (MSG), “in consultation with key stakeholders, to agree and publish a fully costed work plan, containing measurable targets and a timetable for implementation and incorporating assessment of capacity constraints.”In light of the above, the GHEITI Secretariat and the Multi-Stakeholder Group (MSG) have jointly developed a comprehensive work plan to guide the implementation of GHEITI activities for January – December 2017 to achieve better planning, outcomes and desired results.
Pablo is Regional Director at the EITI International Secretariat working with the Middle East and North Africa and Anglo/Lusophone West Africa.
Prior to joining the EITI he was Senior Advisor at the Council on Ethics for the Norwegian Government
Ines Schjolberg Marques
Ines Schjolberg Marques is part of the Anglophone and Lusophone Africa team focussing on Eastern and Southern Africa, and supports wider policy work at the EITI International Secretariat.