Ghana's artisanal and small-scale mining (ASM) sector produced 52% of the country's gold in 2025. This significant output, however, translated into less than 2% of the mining sector's tax revenue for the state.
The Ghana Chamber of Mines highlighted this stark contrast at the 2026 West African Mining and Power Expo (WAMPEX). Chamber President Mr. Michael Edem Akafia and CEO Ing. Dr. Kenneth Ashigbey cited data showing the informal sector's substantial production share. The low tax contribution stems from the sector's largely informal nature, which complicates tracking and compliance.
This revenue gap poses a significant challenge to Ghana's public finances. Gold remains a major export commodity, and maximizing its contribution to the national treasury is vital. Previous data indicate a long-standing issue of under-taxation within the informal mining sector, impacting overall government revenue streams.
The Chamber stated, "Despite that significant share of production, the ASM sector’s contribution to national revenue remains disproportionately low." They urged for stronger measures to integrate more ASM operators into the formal economy. This formalization aims to improve revenue mobilization without harming the livelihoods of small-scale miners.
The implications are clear for government policy and economic stability. Boosting tax collection from this highly productive sector could provide substantial funds for national development projects. Regulatory bodies and policymakers will likely focus on creating incentives and frameworks for formalization.
Ghana's government must balance enforcing tax compliance with supporting the livelihoods of thousands of small-scale miners. Successful formalization could lead to a significant increase in national income. It would also foster more responsible mining practices across the country.
The discussions at WAMPEX 2026 underscored the importance of responsible mining for sustainable development in West Africa. Ghana's experience with its small-scale mining sector is a key case study. Addressing the revenue disparity is crucial for strengthening the nation's economic landscape.
Further efforts are needed to streamline registration processes and provide accessible financial services to small-scale miners. This approach could encourage greater formal participation. It would also ensure Ghana fully benefits from its abundant gold resources.