Oil production began in 2011. Oil revenues are projected to surpass mining receipts in the near future, but it is too soon to assess transparency in the oil industry. Ghana's RGI scores apply only to the mining sector.
Ghana's Performance on the Resource Governance Index
Ghana received a "partial" score of 63, ranking 15th out of 58 countries. It scored particularly well on the Institutional & Legal Setting and Safeguards & Quality Controls components.
(out of 58)
(out of 100)
|12||Institutional & Legal Setting||79|
|13||Safeguards & Quality Controls||73|
Institutional & Legal Setting (Rank: 12th/58, Score: 79/100) learn more
Ghana earned a "satisfactory" score of 79, the product of substantial disclosure policies and an evolving legal framework.
In 2012 the Ministry of Minerals, Lands and Natural Reserves announced reforms to introduce competitive auctions for mineral licenses. Environmental impact assessments are required prior to licensing, but the results are confidential.
The Large Taxpayer Unit of the Ghana Revenue Authority collects all taxes from mining companies; taxes on dividends are collected by a separate unit of the Finance Ministry. The collecting agencies use some mining revenues in their own budgets rather than depositing them in the treasury.
Ghana is a signatory to the Extractive Industries Transparency Initiative (EITI) and achieved compliant status in 2010. A Freedom of Information Bill has been dormant in Parliament since 2010.
Reporting Practices (Rank: 25th/58, Score: 51/100) learn more
The government does not publish comprehensive information on most key aspects of the mining industry, resulting in a "partial" score of 51.
Information on applications for mining concessions is available for a fee, but there is no clear explanation of licensing criteria. Mining contracts are not published and it is difficult to evaluate the actual fiscal terms that apply to companies. However, many oil contracts are available on government websites. Some mining companies voluntarily publish their environmental impact assessments.
The Finance Ministry published information for 2011 on gold prices, the value of gold exports, investments in the mining sector, aggregated taxes from mining companies, dividends, license fees, and the sector's contribution to government revenues. The Ministry of Minerals, Lands and Natural Reserves publishes historical information on production volumes, prices, the value of mineral exports, estimates of investment in the mining sector, production stream values, and royalties. The central bank also provides relevant and timely data on exports, production volumes, and prices. The most comprehensive information on mining revenues is published in EITI reports, which include production volumes, mineral export values, the names of companies operating in the country, production data by company, production stream values, royalties, special taxes, dividends, license fees, and acreage fees.
Safeguards & Quality Controls (Rank: 13th/58, Score: 73/100) learn more
Ghana received a "satisfactory" score of 73, the product of substantive anti-corruption policies but a lack of assertive government oversight.
Inadequate resources mean that legislators rarely fulfill the requirement to ratify all mining contracts. Members of parliament from the ruling party are often appointed to the boards of mining companies, giving legislators a personal stake in the industry despite laws prohibiting conflicts of interest.
The Ghana Audit Office reviews government agencies' financial statements and reports to parliament, but audit mechanisms are weak and no reports specific to extractive revenues are published.
Enabling Environment (Rank: 13th/58, Score: 59/100) learn more
Ghana received a "partial" score of 59, reflecting less-than-satisfactory rankings on measurements of government accountability, transparency, and the rule of law.
Subnational Transfers (Rank: 11th/30, Score: 69/100) learn more
Eighty percent of mining royalties are kept by the central government, 10 percent is deposited into a Mineral Development Fund for distribution to mining communities, and 10 percent goes to the Office of the Administrator of Stool Lands. The agencies then distribute legally-established shares to local authorities. Information on revenue transfers is published in EITI reports, but local authorities do not publish data on the funds they receive. The national audit office reviews the finances of Ghana's district assemblies, but revenues are not audited at the local level, creating the potential for mismanagement.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||6.4||12.2||39.2|
|GDP per capita, PPP (constant 2005 international $)||1,067||1,208||1,652|
|Oil and gas revenues (% total government revenue)||..||6|
|Extractive exports (% total exports)||27||8||56|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank.|