Stakeholders endorse the establishment of the Ghana Gold Board

Stakeholders in the gold trading sector have massively endorsed the establishment of the Ghana Gold Board (GOLDBOD) and its stated objectives, indicating that it will be a positive game changer for the economy and fiscal space.

The GOLDBOD aims to streamline the gold trading sector. Stakeholders—comprising gold buyers, jewellers, bullion traders, small-scale miners, licensed gold exporters, banks, and commercial mining firms in the Western Region, among others—believe it will yield maximum benefits for the country, particularly in foreign exchange, stabilizing the cedi, and accumulating more reserves.

At a forum organized by the Precious Minerals Marketing Company (PMMC) in Tarkwa on Friday, March 14, 2025, the gold dealers expressed optimism about GOLDBOD’s potential and urged the government to fast-track its establishment.

However, they cautioned the government to ensure fair representation of players in the gold trading sector on the governing board. They also called for the inclusion of traditional leaders and members of academia on the board.

Godwin Nickleson Amarh, General Secretary of the Ghana National Association of Small-Scale Miners (GNASSM) and a member of the GOLDBOD Technical Committee told the gathering that while they fully support the establishment of GOLDBOD, they are particularly concerned about degraded lands. He assured that they would collaborate with the GOLDBOD to ensure all degraded lands are restored.

He also allayed fears among small-scale miners that there would be unfair pricing of gold when GOLDBOD becomes operational.

“GNASSM is fully represented on the Technical Committee of the GOLDBOD and will ensure that the pricing of gold is fair, competitive, and at a commercial rate that aligns with the stringent London Bullion Market Association certification,” he stated.

Jonathan Ababio, representing the Jewelers Association, praised the provision in the draft legislation to retain a percentage of gold purchases and supply machinery to add value to their produce.

“We cannot continue to do things the way they are and expect different results. The retention of a percentage of gold purchases in the country and the provision of machinery by the government to enable us to add value to our produce will allow us to break into the international market, and this is good news for us,” he noted.

Alhaji Dauda, a licensed gold buyer, was particularly enthused about the allocation of US$279 million to GOLDBOD as a revolving fund for gold purchases. He urged the government to ensure fair disbursement and timely release of the funds. He also called on the government to ensure that gold is bought at a commercial rate.

“The government must let the money flow so that our work can continue. There shouldn’t be any liquidity challenges that will affect our operations. Let us all support GOLDBOD to transform the gold trading sector,” he noted.

Kwaku Effah Esuahene from the Chamber of Bullion Traders Association noted that GOLDBOD will help determine the amount of forex that enters the country’s accounts and urged stakeholders to support the government in preventing gold smugglers from dominating the sector.

The forum aimed to sensitize participants on the purpose, objectives, and functions of the soon-to-be-established GOLDBOD, while also calling for their cooperation.

Addressing the stakeholders, the Managing Director of the Precious Minerals Marketing Company (PMMC) of Ghana, Samuel Gyamfi, reassured stakeholders that the establishment of the Ghana Gold Board (GOLDBOD) will benefit all players in the gold trading sector, not just a select few.

“Per the law, proceeds from the sale of gold that GOLDBOD will handle will be used to support miners and mining communities. We will supply them with mining equipment and machinery to boost their operations. As part of GOLDBOD’s corporate social responsibility, we will build schools and roads, award scholarships, and supply water in mining communities. So, the entire country is going to benefit from the GOLDBOD initiative,” he noted.

He explained that the government, through the Ministry of Finance, has set up the GOLDBOD Technical Committee to draft enabling legislation for the sector.

Removal of gold smugglers

Samuel Gyamfi took participants through the draft GOLDBOD Bill and highlighted several benefits, including the removal of foreign gold smugglers—particularly Indians and Chinese—from Ghana’s gold trading sector. He noted that GOLDBOD will empower authorities to flush out these individuals whose fraudulent activities have negatively impacted the sector.

According to data from the Bank of Ghana, Ghana officially exported $11.64 billion worth of gold in 2024, a 53.2% year-on-year increase. US$4.6 billion of this amount came from small-scale miners. However, data revealed that the value of gold smuggled out of the country was nearly double this figure.

Sole buyer

Samuel Gyamfi also revealed that GOLDBOD will be the sole buyer of gold through licensed aggregators and local traders, emphasizing that the initiative will shift the country away from the current system where Ghanaians and foreign companies with export licenses can purchase gold without going through approved channels. He also assured stakeholders of fair and competitive pricing.