The CEO and Founder of Afri Coast Minerals & Mining Consultants Ltd (AMMCL), Ing Wisdom Edem Gomashie has raised concerns over the long-term implications of stability and development agreements in Ghana’s mining sector, describing them as “highly retrogressive” in light of the country’s evolving fiscal and economic needs.
In a candid analysis shared under the theme #StabilityAgreements, the industry leader questioned whether Ghana has truly benefited from the cost-benefit dynamics of such agreements, particularly those governed by Sections 48 and 49 of the Minerals and Mining Act, 2006 (Act 703). These provisions allow mining companies to enter into stability agreements with the government, shielding them from adverse fiscal changes such as new taxes or increased royalties for up to 15 years.
“These clauses were initially crafted to attract foreign direct investment (FDI), which was a legitimate concern at the time,” the CEO explained. “However, in their current form, they have become a major stumbling block to Ghana’s ability to respond flexibly to its own economic challenges.”
He further argued that the rigid nature of these stability provisions has forced government to introduce what he termed “necessary-evil” taxes through the back door. An example is the Growth and Sustainability Levy, introduced in 2023 at 1% and subsequently increased to 3% in 2025 measures that many mining companies with stability agreements have refused to pay, citing legal exemptions.
“The irony is painful,” Mr Gomashie said. “Some of the biggest producing mines in Ghana have consistently written to the government asserting their exemption from these taxes due to stability clauses. As a result, non-stability bound companies are now bearing the full brunt of these levies, creating a deeply unequal playing field in the sector.”
He stressed that while the intent of the original law may have been sound creating investor confidence and ensuring predictable operating environments the current outcomes have not matched expectations. “We are yet to see clear evidence of developmental benefits directly attributable to these agreements,” he added.
The remarks come at a time when Ghana is undergoing broader discussions around resource nationalism, equity in extractive industries, and the fiscal optimization of its mineral wealth.
Civil society organizations and policy analysts have also raised concerns over the long-term impact of stability agreements on government revenue, especially during periods of economic strain.
Calls are mounting for a re-evaluation of Ghana’s approach to investment protection in the mining sector, balancing the need to attract capital with the imperative to ensure fair returns for the country and its citizens.
The AMMCL CEO’s comments add a critical industry voice to that conversation, urging policymakers to reassess outdated contractual structures that may no longer serve the national interest.
