A Model of Efficiency and Community Development
President John Dramani Mahama recently highlighted the Tarkwa and Aboso Sports Stadium, commonly known as ‘T & A Park,’ during his first media engagement to discuss the achievements of his administration in the initial months. His recognition was not random; he praised the facility as an example of cost-effective sports infrastructure. This stands in stark contrast to the rising costs associated with government-led projects.
During a question-and-answer session on sports infrastructure, the President pointed to the Tarkwa Gold Fields Stadium as a prime example of wise investment. He noted that the stadium, built for football activities, cost approximately $13 million. In comparison, when the Government of Ghana constructed a similar stadium, it required hundreds of millions of dollars. The President emphasized that the Tarkwa stadium is a standard facility that can accommodate around 10,000 people. His conclusion was straightforward: if Gold Fields could achieve such results at $13 million, the government should be able to do the same.
The facts reveal that the reconstructed T & A Stadium, which has a seating capacity of 10,400 and international-standard amenities, was completed at a cost of $16.2 million by the Gold Fields Ghana Foundation. Despite this, the cost remains relatively low compared to global and local standards. The stadium has already established Tarkwa as a football hub in the Western Region, supporting youth talent and serving as the home ground for Medeama Sporting Club, the premier league team sponsored by Gold Fields.
Unique Funding Model
The Gold Fields Ghana Foundation operates under a unique funding model, drawing from $1 per ounce of gold produced, 1.5 percent of pre-tax profits, and proceeds from scrap materials from its Tarkwa and Damang mines. Since its inception, the foundation has invested over $105 million in education, healthcare, infrastructure, agriculture, and enterprise development. The stadium is just one of many initiatives, alongside the construction of 33 kilometers of Tarkwa-Damang roads at a cost of $27 million.
At a mining conference in Accra earlier this year, the Senior Vice President and Managing Director of Gold Fields Ghana, Eliot Twum, revealed that another legacy project is underway: a modern medical and clinical hub to replace Tarkwa’s aging Apinto Hospital, Ghana’s first government hospital. Twum explained that these efforts are part of a broader strategy to leave an enduring legacy. “We don’t know when we will leave, but when we do, we want to ensure our communities are better off than when we arrived,” he stated.
Long-Term Presence and Economic Impact
Gold Fields has maintained a long-term presence in Ghana since 1993, when it acquired the then state-owned Tarkwa mine, later expanding to Damang in 2002. Today, the company operates both mines with a 90 percent stake, leaving the government with a 10 percent carried interest. While the mining lease for Damang, which expired this year, has been extended for only 12 months on a non-renewable basis, Gold Fields’ economic footprint remains significant.
In 2024, the company contributed about GH₵4.4 billion (US$295 million) to the state, including GH₵2.6 billion in corporate income tax, GH₵337 million in PAYE, and GH₵355 million in dividends. For the first half of 2025 alone, its payments exceeded GH₵3.2 billion, with contributions including GH₵1.6 billion in corporate tax, GH₵587 million in royalties, GH₵185 million in PAYE, GH₵506 million in dividends, GH₵295 million in withholding tax, and GH₵121 million in withholding VAT. These figures underscore the mining sector's direct relevance to Ghana’s fiscal health.
Policy Debate and Corporate Social Investments
Despite the clear benefits of mining, misconceptions persist regarding its value to national development. President Mahama’s public recognition highlights the importance of acknowledging the tangible benefits of corporate social investments and the efficiency gains possible when the private sector collaborates with the state.
The Ghana Chamber of Mines has consistently argued that Corporate Social Investments (CSIs) should remain voluntary, as outlined in the Minerals and Mining Act (Act 703), while being guided by structured frameworks and partnerships. However, the Minerals Commission is advocating for reforms to make Community Development Agreements (CDAs) mandatory, with a levy of 1 percent of gross mineral revenue. The regulator believes that such a levy would formalize existing CSR expenditures and align Ghana with international practice.
On the other hand, the Chamber of Mines warns that mandatory CDAs could stifle innovation and reduce flexibility in how companies design projects for their host communities. It also raises concerns about overburdening marginal mines with weak financials, increasing Ghana’s relative tax burden compared to peer jurisdictions, and ultimately deterring investment in a sector crucial to the country’s economy.
A Call for Partnership and Transparency
President Mahama’s remarks come at a critical time, demonstrating that mining companies are already making meaningful contributions without compulsion. Imposing additional levies risks undermining initiatives like the Tarkwa stadium and the planned hospital, which communities value most.
Ghana must proceed cautiously. The lesson from Tarkwa is that the private sector can deliver world-class infrastructure at a fraction of the state’s cost. Corporate social investments thrive best in an environment of partnership, not compulsion. The government should focus on creating a policy framework that enhances transparency, accountability, and collaboration rather than mandating rigid levies that could erode goodwill.
The Tarkwa stadium symbolizes what can be achieved when efficiency, partnership, and community development intersect. If the government truly wishes to replicate this success, it must learn to spend like Gold Fields and resist the temptation to legislate generosity into obligation.
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