In brief
In a bold move aimed at boosting national revenue and consolidating its mining sector, Ghana has prohibited all foreign nationals from trading in the country’s gold market. The decision follows the establishment of the Ghana Gold Board (GoldBod), which now holds exclusive rights over gold mining activities within the nation. Effective immediately, all foreigners are mandated to cease operations by April 30, 2025.
In a statement, GoldBod spokesperson Prince Kwame Minkah emphasized the urgency for foreign traders to exit, highlighting the importance of this policy change for the struggling economy. As Africa's largest gold producer and the world’s sixth largest, Ghana is grappling with a rise in illicit mining, commonly termed "galamsey". This challenge has been exacerbated by a sharp increase in youth unemployment amidst a backdrop of rising gold prices.The new legislation, which President John Mahama finalized in early April, mandates complete oversight by GoldBod, with new restrictions also applying to local gold dealers. Although foreign investors may still apply for permission to buy gold from GoldBod, they will no longer be integrated into Ghana's local gold value chain. This strategic move seeks to enforce transactions in the local currency, the Ghana cedi, and to regulate pricing according to the Bank of Ghana’s rates.Finance Minister Cassel Ato Forson remarked that a significant allocation of $279 million has been earmarked to support GoldBod's operations, targeting a goal of exporting a minimum of three tonnes of gold weekly. However, the chairman of the Chamber of Bullion Traders, Kwaku Effah Asuahene, expressed concerns regarding the government's capacity to purchase sufficient gold, suggesting a preference for partnerships with foreign investors instead.While the new regulations primarily aim to formalize the gold trading landscape, they may inadvertently complicate the activities of illegal miners, who currently threaten the environment. With over 60% of Ghana's water bodies at risk due to unregulated mining, the directive from the Mahama administration serves as a critical step toward combating illegal operations and fulfilling the government's anti-galamsey commitments.Nana Asante Krobea, a consultant specializing in mining governance, indicated that if the new law is effectively enforced, it has the potential to enhance government revenues and restore order to Ghana’s chaotic gold sector. With a surge in gold exports reported last year, this policy shift aims to ensure that the country benefits more equitably from its rich mineral resources.
