The government has announced plans to establish a Ghana Gold Board (GOLDBOD) to enhance foreign exchange inflows and stabilise the depreciating cedi, Finance Minister Dr. Cassiel Ato Forson has said.
Speaking during his presentation of the 2025 budget statement to parliament, the minister noted that the move is part of broader efforts to leverage the country’s gold reserves to shore up the local currency while also providing regulatory oversight for small-scale mining activities.
He said: “To support stability of the cedi, I will submit a bill to provide a legal framework for establishing the Ghana Gold Board for consideration”.
The finance minister announced additional measures for currency stabilisation, including continued implementation of the Bank of Ghana’s (BoG) FX forward auctions, a strong fiscal consolidation through reduced public sector spending and a reduction in the fiscal deficit to ease exchange rate pressures.
“Our import substitution drive under the 24-hour economy involving the domestic production of key products originally imported will reduce imports and related FX requirements, boding well for FX stability,” he added.
Goldbod
Beyond its role in cedi-stabilisation, the GOLDBOD will also serve as a regulatory body, overseeing critical aspects of the gold trade such as purchasing, assaying, refining and exports.
Additionally, he said government will allocate the cedi equivalent of US$279million as a revolving fund for the Board, allowing it to purchase and export at least three tonnes of gold per week from small-scale miners.
This measure, according to Dr. Forson, is expected to increase the country’s foreign exchange reserves while formalising a sector that has long been vulnerable to smuggling and illicit financial flows.
Also, in a bid to further incentivise the sector, he announced that government will abolish the 1.5 percent withholding tax on unprocessed gold winnings by small-scale miners.
The tax removal is said to be aimed at increasing compliance in the artisanal mining sector and ensuring more gold passes through official channels.
It is envisaged that the elimination of this ‘tax burden’ will encourage miners to sell their gold through formalised markets, ultimately benefitting reserves and strengthening the cedi.
Some industry players have expressed various reactions to the policy measures. Some small-scale miners welcome the tax relief, describing it as a step toward better participation in the formal economy.
The Ghana National Association of Small-scale Miners (GNASSM) has already noted their contentment on the development, pointing out the level of transparency in government efforts.
“Small-scale miners are fully represented on the Technical Committee constituted by the finance minister to develop legislative proposals for forming the Ghana Gold Board,” noted a statement signed by the Association’s president Godwin Nickleson Amarh.
It said inputs from stakeholders will ensure that activities of the GOLDBOD will not only be transparent but also focus on formalising gold trading in Ghana.
“Currently, the gold trading sector is very disorganised and informal. Government is losing a great deal of revenue and forex that could be generated from the sector for economic stability and national development,” GNASSM observed.
To this end, it said with establishment of the GoldBod through an Act of Parliament, “we are convinced that the necessary policy framework for gold trading will be put in place to help the nation realise the small-scale mining sector’s full potential”.
The statement said the association recognises that inclusion of all relevant stakeholders on the governing board will ensure GOLDBOD’s operations are inclusive, beneficial to stakeholders and in conformity with international standards.
“GNASSM is committed to supporting government in the establishment of GOLDBOD for the nation’s benefit,” the statement added.
BFT