Ghana and UK intensify efforts to combat illegal gold trade

Finance Minister Dr Cassiel Ato Forson on Monday met with officials from the UK-Ghana Gold Programme to discuss strategies to curb gold smuggling and ensure Ghana fully benefits from its gold resources.

The UK-Ghana Gold Programme is a collaborative initiative aimed at breaking the link between illegal artisanal gold mining and serious organised crime (SOC).

During the meeting, stakeholders underscored the impact of illicit gold trade on Ghana’s economy, noting that in 2022 alone, 60 tonnes of gold – worth an estimated $1.2 billion – were smuggled out of the country.

To address this challenge, discussions focused on the establishment of the Ghana Gold Board (GoldBod), which will oversee gold trade, tackle smuggling, and promote responsible sourcing.

The initiative has already gained the support of the UK/Ghana Gold Programme, which is working closely with the Economic and Organised Crime Office (EOCO) to combat gold smuggling at key border points such as Bole.

The meeting also highlighted ongoing collaborations between the UK/Ghana Gold Programme and the Precious Minerals Marketing Company (PMMC), focusing on industry reforms, including gold pricing mechanisms, pre-financing options, whistleblower protection for reporting smuggling, and ensuring responsible sourcing aligned with London Bullion Market Association (LBMA) certification.

In a bold move to support Ghana’s gold trade, the government will fund GoldBod to purchase 3 tonnes of gold every week, a strategy aimed at boosting foreign exchange reserves.

Additionally, as part of the 2025 Budget, the government is set to abolish the 1.5% withholding tax on unprocessed gold, a policy shift expected to encourage more formal gold trade and reduce smuggling.

Dr Forson emphasised that these measures will help Ghana regain control of its gold industry, disrupt illegal trade networks, and ensure the country reaps the full benefits of its natural resources.

The collaboration between Ghana and the UK marks a significant step toward ending gold smuggling and fostering a more transparent and profitable gold sector.

Source: myjoyonline.com