In a decisive move to strengthen its gold mining sector and increase national revenue, Ghana has announced a ban on all foreign nationals from trading within the local gold market. This decision follows the establishment of the Ghana Gold Board (GoldBod), a new state authority, which will oversee all gold mining activities. GoldBod spokesperson Prince Kwame Minkah stated that foreign traders must exit the local market by April 30, 2025.
Ghana Implements Foreign Ban on Gold Trading to Enhance National Revenue
Ghana Implements Foreign Ban on Gold Trading to Enhance National Revenue
Ghana's recent ban on foreign participation in its gold trading market aims to bolster the economy and streamline mining operations.
As Africa's leading gold producer and the sixth largest globally, Ghana is grappling with the challenges of illegal gold mining, popularly referred to as "galamsey." Amid rising gold prices and high youth unemployment, these illicit operations have flourished, prompting military crackdowns to curb their expansion. The ban also serves as a response to the high cost of living, exacerbated by inadequate returns from cocoa production, where Ghana is the world’s second-largest producer.
The new legislation, passed by parliament and signed by President John Mahama on April 2, gives GoldBod exclusive rights to buy, sell, and export gold from the artisanal and small-scale mining (ASM) sector. While foreigners can apply for licenses to buy gold directly from GoldBod, they can no longer participate within the local gold value chain. Authorities revoked the licenses of local dealers, providing a grace period until the end of May for a seamless transition. All transactions will exclusively use the Ghanaian cedi, pegged to the Bank of Ghana’s rates. GoldBod has made clear that purchasing gold without a lawful license will incur penalties.
With a government allocation of $279 million for GoldBod, officials aim to purchase and export a minimum of three tonnes of gold weekly to improve foreign exchange flows and support the cedi. However, local traders express concerns about the government’s revenue generation capabilities to meet these goals. Some traders are advocating for partnerships with foreign investors to enhance operations.
The ban is a significant step in President Mahama’s commitment to enforcing stricter regulations within the gold sector and tackling illegal mining, a pressing environmental concern in the country. Nana Asante Krobea, a mining governance consultant, argues that if effectively implemented, the new law could stabilize government revenue and restore order to the chaotic gold trade. Last year, Ghana’s gold exports soared by 53.2% to $11.64 billion, with nearly $5 billion derived from small-scale miners, indicating the sector's potential for growth as it navigates regulatory transformations.
The new legislation, passed by parliament and signed by President John Mahama on April 2, gives GoldBod exclusive rights to buy, sell, and export gold from the artisanal and small-scale mining (ASM) sector. While foreigners can apply for licenses to buy gold directly from GoldBod, they can no longer participate within the local gold value chain. Authorities revoked the licenses of local dealers, providing a grace period until the end of May for a seamless transition. All transactions will exclusively use the Ghanaian cedi, pegged to the Bank of Ghana’s rates. GoldBod has made clear that purchasing gold without a lawful license will incur penalties.
With a government allocation of $279 million for GoldBod, officials aim to purchase and export a minimum of three tonnes of gold weekly to improve foreign exchange flows and support the cedi. However, local traders express concerns about the government’s revenue generation capabilities to meet these goals. Some traders are advocating for partnerships with foreign investors to enhance operations.
The ban is a significant step in President Mahama’s commitment to enforcing stricter regulations within the gold sector and tackling illegal mining, a pressing environmental concern in the country. Nana Asante Krobea, a mining governance consultant, argues that if effectively implemented, the new law could stabilize government revenue and restore order to the chaotic gold trade. Last year, Ghana’s gold exports soared by 53.2% to $11.64 billion, with nearly $5 billion derived from small-scale miners, indicating the sector's potential for growth as it navigates regulatory transformations.
