Ghana bans foreigners from trading in its gold market to boost revenue

Ghana bans foreigners from trading in its gold market to boost revenue

(BBC) Ghana has banned all foreigners from trading in its local gold market as part of efforts to boost national revenue and streamline the country’s mining sector.

It follows the enactment of a new law earlier this month that grants exclusive authority of gold mining to a new state body, the Ghana Gold Board (GoldBod).

“All foreigners are hereby notified to exit the local gold trading market not later than 30th April, 2025,” said GoldBod spokesperson Prince Kwame Minkah in a statement.

Ghana is Africa’s largest gold producer and the sixth largest in the world, but it is struggling to address widespread illegal gold mining, locally called “galamsey”.

Under the new law passed by parliament last month and assented to by President John Mahama on 2 April, GoldBod is the sole buyer, seller and exporter of all gold produced by the artisanal and small-scale mining (ASM) sector.

However, foreigners are allowed to apply to buy or off-take gold directly from the GoldBod but can no longer operate within the local gold value chain.

The licenses of local dealers have also been revoked but given a grace period to allow a smooth transition before the directive takes effect next month.

During this period, gold transactions would only be carried out in Ghana cedis, the local currency, and priced based on the Bank of Ghana rates.

GoldBod warned that “it shall constitute a punishable offence for a person to purchase or deal in gold in the country without a licence issued by the new board.

The government has allocated $279m (£212) to the new body to purchase and export at least three tonnes of gold per week.

The move is meant to help boost foreign exchange inflows and stabilise the local currency, said Finance Minister Cassel Ato Forson.

But Kwaku Effah Asuahene, the chairman of the Chamber of Bullion Traders Ghana, fears that the government may not be able to raise enough revenue to purchase all the gold.

He told BBC that while they support the initiative, they would have preferred to be allowed to partner with foreign investors to purchase the gold and export it through GoldBod.