Getting a Good Deal: Ring-fencing in Ghana (PDF 152.43 KB)
This is one in a series of case studies that illustrates the principles of the Natural Resource Charter.Challenges associated with administering the extractive industry tax regime provide the backdrop to Ghana’s ring-fencing reforms. Since Ghana’s first large oil field began production in 2010, tax payments were lower than anticipated due to the deduction of development and exploration costs from neighboring extractive projects. The country has since revised the ring-fencing rules for both mining and petroleum operations, the results of which have yet to be seen. This case study considers the trade-offs associated with ring-fencing and explains why it should be approached with caution.