In brief
Ghana, Africa's leading gold producer, is implementing a ban on foreign involvement in its gold trading market to enhance revenue and combat illegal mining activities.
Ghana, known for its rich gold reserves, has introduced a strict ban on foreign traders in its gold market as part of new regulations aimed at increasing national revenue and regulating the mining sector. This decision follows the establishment of the Ghana Gold Board (GoldBod), designated as the sole authority responsible for gold transactions from small-scale mining efforts. "The weeding out of foreign traders must happen by April 30, 2025," announced GoldBod spokesperson Prince Kwame Minkah. This initiative addresses concerns over the rampant illegal “galamsey” mining practices, exacerbated by a mix of rising gold prices and youth unemployment. While Ghana holds a significant position in the gold market globally, the local economy is grappling with a high cost of living and environmental consequences stemming from illegal mining. The Ghana Gold Board will oversee all transactions of artisanal mining gold and will exclusively buy, sell, and export the commodity. Foreigners can apply to buy directly from GoldBod but are prohibited from participating in local trading. Local dealers have been given a grace period to adjust to these changes, which also include a policy requiring all gold sales to be conducted in Ghana cedis. The government's financial investment of $279 million is aimed at ensuring an adequate gold supply, as they expect to purchase at least three tonnes weekly. However, local bullion traders express concern about the feasibility of generating the necessary income for this initiative. This regulatory move aligns with the new administration’s campaign promises to mitigate the chaos in the mining sector and tackle illegal mining issues. With the expectation that this law will uplift government revenue and reinforce local mining laws, Ghana is taking decisive steps to restore order amidst its mineral wealth struggle.
