Historically Ghana is a mining country. With substantial reserves, it is the 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.
Ghana published its latest EITI Reports covering fiscal year 2017 and 2018 in December 2019. The report covers the payments made by Oil, Gas and Mining companies and receipts by the government for the period 1st January 2017 to 31st December 2018. The report also provides contextual information on the oil and gas and mining sectors including the overview of the sector, licensing regime, contracts, state participation, beneficial ownership, exploration production and exports, revenues collection and allocation, quasi-fiscal expenditures, transactions by state-owned enterprises(SOE’S), outcomes and impacts and revenue management.
Information on Beneficial Ownership of at least 12 mining (here) and 5 oil and gas (here) companies has been published in January 2020. Ghana EITI is making progress to improve the granularity and comprehensiveness of the information disclosed.
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 EITI as part of the implementation of Ghana’s beneficial roadmap has moved to the actualisation phase. This involves collaborating with key institutions including the Registrar-General’s Department (RGD), Ghana Oil and Gas for Inclusive Growth (GOGIG), STAAC, Financial Intelligence Centre and other relevant CSOs and partners to sensitise various stakeholders on the new disclosure regime
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, The RGD Beneficial Ownership disclosure mechanism is expected to be fully operational in 2020. Read Ghana's beneficial ownership roadmap below for more information.
Ghana is the largest gold producer in Africa and the eighth largest in the world as of 2020. In 2018, gold production accounted for over 2.5% of world gold production with an outturn of almost 5 million oz up from 2015 outturn of 3,623,740 oz. Diamond production has been on a decline. Production in 2009 of 376,000 carats has slowed to 100, 328 carats in 2018. Bauxite production since 2001 has been volatile with the production of 1,011,302 metric tons in 2018.
Oil production began in late 2010 from the only field - the Jubilee Field which is estimated to hold about 460 million barrels of crude oil and 568 billion cubic feet of natural gas. According to the 2018 GHEITI Report, Ghana’s oil production in 2018 was 62.7 million barrels coming from the three main commercial fields, Jubilee, TEN and Sankofa-Gye Nyame. Associated gas produced from the 3 field amounted to over 90,000 mmscf respectively in 2018.
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 extractive sector contributed USD 1.4 billion (GHS 5,727,602,310) to government revenue in 2018. The mining sector contributed to over USD 475 million (GH¢1.9 billion) to Government revenue in 2018 as against USD 400 million in 2016. Earnings from minerals exported in 2018 amounted to USD 5.7 billion. The Government of Ghana received over USD 977 million (GH¢4, 5 billion ) in 2018 as against USD 1.1 million in 2016. This significant increase was mainly due to an increase in price from an annual average of US$53.49 per barrel in 2017 to US$70.34 per barrel in 2018 coupled with increased lifting volumes from 5,856,921 barrels in 2017 to 9,783,239 barrels in 2018.
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.
In August 2018, Ghana published its commodity trading report as part of the targeted effort on commodity trading transparency. 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. A 2nd Commodity trading report is currently underway.
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. A total of USD 436 million was transferred into the Ghana Petroleum Funds in 2018.
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 the new Earmarked Funds, Capping and Realignment Act, 2017 (Act 947), clarifying the legal and financial relationship between the SOE and its subsidiaries and stakeholders, 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.
- A recent financial modeling study commissioned by the EITI International Secretariat in consultation with Ghana EITI (GHEITI) is supporting stakeholder discussion on the future of the Agyapa Royalty deal.
- 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 the spending of extractive sector revenues. According to the 2020 workplan, the implementation of the activities is well aligned with national priorities geared towards contributing to the achievement of Government Economic Transformation Agenda and ‘Building a Ghana beyond Aid’ using our natural resource wealth as a vehicle.
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 on the outcomes of implementation in Ghana EITI's 2018 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 was validated on 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.
Name of Chairman of MSG:
- Dr. Steve Manteaw
Name of National Coordinator:
Mr. Bash Mohammed Abdul-Razak
- Ministry of Finance
- Ministry of Energy
- Ministry of Lands and Natural Resources
- Ministry of Local Government & Rural Development
- Minerals Commission
- Petroleum Commission
- Ghana Revenue Authority
- Office of the Administrator of Stool Lands (OASL)
- Ministry of Environment, Science & Technology
- Geological Survey Authority
- Precious Minerals Marketing Company Ltd.
- Environmental Protection Agency
- Forestry Commission
- Water Resources Commission
- Lands Commission
- Bank of Ghana
Messrs Boas & Associates was engaged by the Ministry of Finance and GHEITI to produce the EITI report for 2017 and 2018. This report covers the payments made by Oil and Gas companies and receipts by the government for the period 1st January 2017 to 31st December 2018.
The report also provides contextual information on the oil and gas sector including the overview of the sector, licensing regime, contracts, state participation, beneficial ownership, exploration production and exports, revenues collection and allocation, quasi-fiscal expenditures,
The Ghana Extractive Industries Transparency Initiative (GHEITI) engaged Messrs Boas & Associates to reconcile the payments made by Mining Companies and receipts by the government of Ghana for 2017 and 2018.
The report covers an overview of the mining sector in Ghana; license registers; exploration, production, and exports of minerals; beneficial ownership; contract transparency; state participation in the extractive sector; revenue collection (including reconciliation and allocation; social and economic spending; and the outcomes and impact of the EITI in Ghana.
This is the Ghana EITI 2019 work plan (in accordance with Requirement 1.5).
This is the Ghana EITI 2018 Annual progress report, published in July 2019. It highlights progress made on objectives of Ghana's work plan.