Ghana’s revenues from natural resources increase 400%

Ghana received over four times more from its natural resources in 2011 compared with the previous year. This remarkable increase, revealed in Ghana’s 2011 EITI Report that was launched last week, is a consequence of two developments: production started at the new Jubilee oil field and higher tax revenue from Ghana's mining sector.

Clare Short, EITI Chair said: "With high expectations about these revenues, transparency is more important than ever."

Price hikes and higher tax rates cause mining revenues to double

While revenues from oil and gas production boosted the country’s economy, revenues from the mining sector also increased significantly.

The Ghanaian government’s revenues from mining more than doubled between 2010 and 2011, from US$ 210 million to US$ 500 million.

The increase was partly a consequence of higher mineral prices, in particular gold, and of the end of an initial investment recovery period.

There was a 75% increase in the corporate taxes paid by companies. In addition, Ghana increased the royalty tax rate on its mining sector.

Revenues from resources almost US$ 1 billion

Government revenues from natural resources were US $940 million, of which revenues from oil and gas were US$ 440 million and mining $500 million.

Ghana 2011 EITI report also reconciles revenues from payments that were made 'in-kind', that is in physical quantities of oil/gas. These in-kind payments amounted to 2 million barrels, which were sold for US $234 million.

Discrepancies between the payments reported by the government and the companies were in the order of 5%. Discrepancies were mostly found between figures within the mining sector.

Download Ghana’s 2010 and 2011 EITI Report

For further information about EITI in Ghana, please visit www.eiti.org/ghana

UPDATE 18 MARCH: Replaced quote from Bill Gates with quote from Ghana's Mininster of Finance.