Founding partner at Clinton Consultancy, Amanda Clinton, has proposed a calibrated approach to Ghana’s planned overhaul of its gold royalty system, urging policymakers to balance the country’s push for greater mineral revenues with the need to maintain investor confidence.

Ms Clinton, an international legal expert, has put forward the proposal as Ghana faces growing international attention over plans to replace its current fixed 5 percent royalty on gold production with a sliding-scale system that could rise to as much as 12 or 13 percent when global gold prices surge.

While acknowledging Ghana’s right to secure greater value from its mineral resources, the lawyer warned that sudden fiscal shifts could create uncertainty for investors if not carefully structured.

“The principle behind the reform is understandable,”Ms Clinton noted in an analysis of Ghana’s evolving gold policy, arguing that producing countries increasingly seek a fairer share of profits from extractive industries.

Push for greater share of mineral wealth

Ghana is Africa’s leading gold producer and among the top gold exporters globally. The sector is a major pillar of the national economy, generating billions of dollars in foreign exchange annually and supporting thousands of jobs.

Recent years have seen gold prices climb significantly on global markets, boosting profits for mining companies operating in Ghana. However, many policymakers and analysts say the existing fiscal framework reflects an earlier era in which resource-producing countries accepted relatively modest returns while foreign investors captured much of the upside.

Ms Clinton described Ghana’s policy shift as part of a broader effort by the country to reposition itself within the global mineral economy.

“The issue is not simply about taxation,” she argued. “It is about sovereign positioning and ensuring that more of the value created by natural resources remains within national borders.”

Call for clearer fiscal framework

Despite supporting Ghana’s objective, Ms Clinton cautioned that any increase in royalties should be implemented through clear and predictable mechanisms.

She proposed maintaining the current 5 percent royalty as a baseline while allowing incremental increases only when global gold prices reach predefined thresholds.

Such a system, she said, would enable the government to benefit during periods of extraordinary price surges while avoiding perceptions of abrupt or punitive taxation during normal market conditions.

Ms Clinton also recommended that the upper royalty limit initially be set lower than the proposed 12–13 percent ceiling, with any future increases tied more closely to profitability rather than grossrevenue.

“This would protect government income during exceptional price spikes while preserving investment stability,” she explained.

Strengthening Ghana’s gold value chain

Beyond fiscal reforms, Ms Clinton emphasised the need for Ghana to expand domestic value addition in the gold industry.

She urged the country to deepen investments in refining capacity, local bullion storage and industrial uses of gold, arguing that long-term economic sovereignty depends not only on royalties but also on control of the value chain.

Ghana has already taken steps in this direction through initiatives aimed at strengthening its refining sector and developing industrial clusters linked to mineral processing.

According to available data, Ghana’s formal gold exports generated close to $5 billion in foreign exchange last year, while the artisanal and small-scale mining sector continues to represent a significant, though partly informal, portion of the industry.

Global attention on Ghana’s policy

Ms Clinton noted that Ghana’s proposed royalty reform has attracted coordinated concern from several international actors, including major powers such as the United States and China, alongside Western governments with economic interests in the mining sector.

She said such reactions are not unusual when major resource policies shift but observed that the timing reflects the growing strategic importance of gold in the global economy.

“Gold has returned to the centre of strategic economic thinking,” Clinton wrote, pointing to rising central bank purchases and growing uncertainty in global financial systems.

Ghana’s institutional stability

Despite some speculation in international commentary linking resource policy changes to potential political risks, Clinton dismissed suggestions that Ghana faces instability over the proposed reform.

She noted that Ghana remains one of West Africa’s most stable democracies with strong institutions and a well-established constitutional framework.

Unlike historical cases in which mineral wealth became entangled with political turmoil, she said Ghana’s debate is unfolding through legal processes, parliamentary deliberation and policy consultation.

“That institutional maturity is precisely why the country is unlikely to follow the destabilising trajectories sometimes invoked in alarmist commentary,” Clinton said.

Balancing sovereignty and investment

Ultimately, Ms Clinton argued that Ghana’s challenge lies in striking the right balance between sovereign control of mineral wealth and maintaining a competitive investment environment.

If carefully designed, she said, the proposed royalty reforms could enable Ghana to increase national revenues while continuing to attract long-term investment in the mining sector.

“As gold once again becomes central to global economic strategy,”Ms Clinton concluded, “countries like Ghana will increasingly seek policies that ensure their mineral wealth supports long-term national development.”