Faith Nyasuguta
Ghana has mandated that all foreign nationals involved in the country’s local gold trading market must cease operations by April 30, 2025. This directive is part of the enforcement of the newly enacted Ghana Gold Board Act (Act 1140), which was passed by Parliament on March 29 and assented to by President John Dramani Mahama on April 2.
The Ghana Gold Board (GoldBod), established under this new law, will assume exclusive authority over the purchase, sale, assaying, and export of gold produced by licensed small-scale miners. All previously issued licenses by the Precious Minerals Marketing Company (PMMC) and the Minister responsible for Mines, except those held by large-scale mining companies, are now invalid.
Foreign entities directed to exit the local gold trading market may apply for authorization to purchase gold directly from GoldBod. Non-compliance with the new regulations will result in criminal charges.
This move aims to reform how Ghana sources gold from small-scale miners, boost revenue, and curb smuggling. In 2024, Ghana’s gold exports surged by 53.2% to reach $11.64 billion, with nearly $5 billion attributed to legal small-scale mining operations.
The creation of GoldBod is expected to enable Ghana to capture greater value from gold sales and help stabilize the national currency. Finance Minister Cassiel Ato Forson stated that the establishment of GoldBod would allow Ghana to benefit more from gold sales while maintaining the national currency’s stability.
Ghana, Africa’s largest gold producer, has been grappling with the challenges posed by illegal small-scale mining, known locally as “galamsey.” This unregulated mining has caused significant environmental damage, including water pollution and deforestation, and has been a key issue in Ghana’s recent presidential election.
The new regulations are part of a broader effort to formalize the artisanal and small-scale mining sector, ensuring that gold production contributes more effectively to the nation’s economy and environmental sustainability.
In the broader West African context, countries like Mali and Burkina Faso are also facing challenges related to illegal gold mining and are implementing reforms to address these issues. Ghana’s approach could serve as a model for neighboring countries seeking to balance economic growth with environmental protection and regulatory compliance.
As global gold prices continue to rise, reaching over $3,200 per ounce recently, Ghana’s efforts to regulate its gold industry are crucial for maximizing national benefits and mitigating the adverse effects of unregulated mining activities.
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