Ghana raked $365m in revenue from mining sector in 2016

desmond frimpong

September 18, 2017 11:37 AM

For the first time since 2011, the provisional balance of payments in 2016 recorded a surplus.

The mining sector in Ghana contributed significantly to the Ghanaian economy in 2016 fiscal year, the Chief Executive Officer of the Ghana Chamber of Mines, Sulemanu Koney, has revealed.

According to him, the sector, in 2016, contributed about $365 million to the Ghana Revenue Authority (GRA), representing 15.8 percent of the GRA’s total direct taxes for the year.

Addressing the media at a forum in Accra, he explained that the sector contributed about $365 million to the GRA, representing 15.8 percent GRA’s total direct taxes for the year.

"Mining was the leading taxpayer and contributor to GRA’s domestic collections in 2016. It contributed about $365 million to GRA, representing 15.8% of GRA’s Total Direct Taxes in 2016".

Gold Fields and Newmont Ghana, member companies of the Chamber, were adjudged the largest and second largest taxpayer in Ghana in 2016 by GRA.

The mining industry accounted for 46% of the country’s gross export revenue in 2016, reinforcing its position as the leading source for forex and a major contributor to the country’s balance of payments.

For the first time since 2011, the provisional balance of payments in 2016 recorded a surplus.

This largely reflected an improvement in the trade balance driven by a rise in gold export receipts and a fall in oil import prices.

Producing members of the Chamber returned USD 2.3 billion, representing 71% of their mineral revenue (USD3.2 billion) through the Bank of Ghana (BoG) and the commercial banks in 2016.

This has a significant bearing on the international reserve position of BoG and the stability of the monetary system as a whole.

desmond frimpong