The Importers and Exporters Association of Ghana (IEAG) has called for a clear separation between regulatory oversight and commercial participation in the operations of the Ghana Gold Board (GoldBod), warning that the current structure could undermine fair competition in the gold trade.
In a statement signed by its Executive Secretary, Mr Samson Asaki Awingobit, the association acknowledged the progress made by GoldBod in formalising the gold sector, improving traceability, and strengthening Ghana’s external reserves through structured gold inflows.
According to IEAG, these reforms are beginning to deliver measurable macroeconomic benefits. However, the association expressed concern that certain operational practices are increasingly limiting the activities of licensed self-financing gold aggregators and exporters.
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The association noted that GoldBod, which was established primarily as a regulatory and oversight body to curb illegal gold exports, especially in the artisanal and small-scale mining (ASM) sector, is now perceived as operating both as a regulator and a market participant.
It warned that this dual role creates a structural conflict of interest, as GoldBod is simultaneously setting industry rules, enforcing compliance, and competing commercially within the same market.
IEAG likened the situation to a scenario where the Bank of Ghana would compete directly with commercial banks, describing such an arrangement as untenable due to the regulator’s access to privileged information, capital, and regulatory influence.
The association further revealed that although more than 200 gold aggregators have reportedly been licensed, only a small number are believed to operate with direct financial backing linked to GoldBod and the Bank of Ghana, including interest-free or concessionary funding.
In contrast, self-financing aggregators depend on commercial bank loans at prevailing high interest rates, creating what IEAG described as a systemic financial imbalance that makes many private operators commercially vulnerable.
It added that members have reported that GoldBod-backed aggregators are increasingly sourcing gold independently instead of working through licensed private exporters, thereby intensifying competition in the sector.
IEAG also raised concerns over prolonged due diligence and Know Your Customer (KYC) approval processes for off-takers working with self-financing aggregators.
According to the association, some operators have waited several months for export clearance despite meeting all statutory and traceability requirements.
It warned that open-ended and discretionary approval procedures heighten transaction risks, weaken contract enforcement, and could lead to lost international contracts and reduced foreign exchange inflows.
To address these challenges, IEAG proposed the introduction of a risk-based supervisory framework aligned with international best practices in commodity regulation.
Under the proposed system, high-risk off-takers would be required to deposit prescribed collateral or the full transaction value into a designated escrow account at the Bank of Ghana, instead of being excluded outright.
The association said this approach would strengthen compliance, maintain market liquidity, boost investor confidence, and promote competitive neutrality.
IEAG further expressed concern over reports that export proceeds of self-financing aggregators are being held for extended periods in accounts linked to GoldBod or the Bank of Ghana before release, placing severe pressure on cash flow in the capital-intensive gold sector.
It cautioned that sidelining compliant exporters could shrink the tax base and weaken domestic revenue mobilisation within the gold value chain.
The association reiterated that GoldBod should focus strictly on its regulatory and supervisory mandate and avoid direct involvement in gold buying and exporting.
IEAG therefore called on GoldBod and relevant state institutions to clearly separate regulation from commercial activity, adopt transparent and non-discretionary approval systems, implement escrow-based safeguards, fast-track clearance timelines with clear benchmarks, and review export proceeds retention practices in line with global trade finance standards.
It added that Ghana’s gold sector would benefit most from strong regulation that enables markets rather than replaces them, stressing its readiness to engage constructively with GoldBod, the Bank of Ghana, and other stakeholders to promote inclusive and sustainable growth.
GNA