Ghana Gears Up for Gold Board to Regulate Gold Trade and Curb Smuggling
The government is set to establish the Gold Board (GOLDBOD) to streamline gold trading and eliminate illicit activities in the sector. The initiative, which aims to enhance transparency, increase foreign exchange inflows, and stabilize the cedi, was the focus of a stakeholders’ engagement held in Tarkwa.
The event, attended by gold buyers, small-scale miners, commercial mining companies, and traditional authorities, sought to clarify the objectives of GOLDBOD, address misconceptions, and solicit feedback on the proposed GOLDBOD Bill.
The Managing Director of the Precious Minerals Marketing Company (PMMC), Mr. Sammy Gyamfi, highlighted the economic benefits of the Gold Board. He stated that the board could generate between $4 billion and $6 billion annually through strategic forward sales of gold from the small-scale mining sector. He noted that this would support foreign exchange accumulation and strengthen the Bank of Ghana’s ability to manage the country’s exchange rate.
Additionally, he explained that GOLDBOD would have the first right to purchase a portion of gold production from large-scale mining companies, ensuring a steady reserve for national economic stability. The Board would also issue various licenses for individuals and businesses in gold trading, including:
• Aggregator License
• Buying License
• Refining License
• Export Partnership License
• Storage License
• Importation License
Crackdown on Gold Smuggling
As part of efforts to sanitize the sector, Mr Gyamfi issued a strong warning to gold smugglers: desist from their illegal activities or face severe consequences.
“We know where you are, and soon, we will track you. So don’t be tempted to smuggle gold. There will be no black market. No foreigner will be given an aggregator license to buy gold. Foreigners have been benefiting from our gold industry for too long, and we must put an end to that. If you want gold, go through GOLDBOD,” he emphasized.
He added that individuals caught smuggling gold would face a minimum prison sentence of 10 years and a maximum of 20 years. GOLDBOD, he said, would have the legal authority to conduct inspections, audits, searches, seizures, and arrests in collaboration with other state agencies.
Stakeholders’ Concerns and Support
The General Secretary of the Ghana National Association of Small-Scale Miners, Godwin Armah, urged stakeholders to support the initiative, stressing that its success was crucial to the industry’s future.
During the engagement, some stakeholders raised concerns about gold pricing and whether GOLDBOD would effectively serve their interests. Addressing these concerns, Mr. Armah, who will serve on the Board’s technical committee, assured participants that the Small-Scale Miners Association would protect the interests of its members and urged them not to worry.
Despite some reservations, many stakeholders welcomed the initiative, seeing it as a mutually beneficial arrangement between the government and industry players. They believe the establishment of GOLDBOD will bring more structure to the gold trade, curb smuggling, and create a fairer trading environment for all participants.
As the government finalizes plans for GOLDBOD, industry players are eager to see how it will reshape Ghana’s gold trade and enhance economic stability.
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