Players in the gold trading sector have massively endorsed the establishment of the Ghana Gold Board (GOLDBOD) and its stated objectives and indicated this will be a positive game changer to the economy and fiscal space.
The GOLDBOD aims to streamline the gold trading sector, and the stakeholders made up of gold buyers, jewelers, 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 Mining Company (PMMC) in Tarkwa on Friday, March 14, 2025, the gold dealers expressed optimism about the GOLDBOD’s potential and urged the government to fast-track its establishment.
However, they cautioned the government to ensure 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 from 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 much as they fully support the establishment of the GOLBOD, they are particularly, concerned about degraded lands. He assured that they would collaborate with the GOLDBOD to ensure that all degraded lands are restored.
He also allayed the fears of the small scale miners that there wouldn’t be fairness in the pricing of gold when the GOLDBOD is established and 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 enable 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 the GOLDBOD as a revolving fund for gold purchases. He urged the government to ensure fair disbursement and timely releases of the funds. He also urged the government to ensure that gold is bought at a commercial rate.
“The government must let the money flow so that our work will go on. There shouldn’t be any liquidity challenges that will affect our operations. Let us all support the GOLDBOD to transform the gold trading sector”, he noted.
Kwaku Effah Esuahene from the Chamber of Bullion Traders Association noted that the GOLDBOD will help to determine the amount of forex that has hit the country’s accounts and urged stakeholders to support the government in preventing gold smugglers from taking over the sector.
The forum was aimed at sensitizing the participants on the purpose, objects and functions of the soon to be established GOLDBOD while calling for their cooperation.
Addressing the participants, the Managing Director of the Precious Minerals Marketing Company (PMMC) of Ghana, Samuel Gyamfi, reassured the 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 the GOLDBOD will sell will be used to support the miners and mining communities. We will supply them with mining equipment and machinery to boost their operations. As part of the GOLDBOD’s corporate social responsibility, we are going to build schools, roads, award scholarships and supply water in the mining communities. So, it is the entire country that 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 the participants through the draft GOLDBOD Bill and highlighted several benefits of it, including the removal of foreign gold smugglers, particularly Indians and Chinese, from Ghana’s gold trading sector. He noted that the GOLDBOD will empower authorities to flush out these individuals whose fraudulent activities have 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, the value of gold smuggled out of the country was nearly double this figure, data revealed.
Sole buyer
Samuel Gyamfi also revealed that the GOLDBOD will be the sole buyer of gold through licensed aggregators and local traders, emphasizing that the initiative would ensure that the country would shift away from the system where Ghanaians and foreign companies with export licenses could purchase gold without going through the approved rules. He also assured of fair and competitive pricing.