Gold industry undergoing dramatic transformation

According to information from the Bank of Ghana, the country’s authoritative golden reserves proceed connected an upward trajectory – reaching 31.37 tonnes by the extremity of April this twelvemonth (2025).

It’s a important summation from 8.78 tonnes recorded successful May 2023—a astir four-fold emergence successful little than 2 years. This maturation reflects the cardinal bank’s strategy of bolstering overseas reserves and enhancing fiscal stableness done accrued golden accumulation.

It besides marks a broader program by the Bank of Ghana to diversify its plus holdings and trim reliance connected accepted overseas currencies. Upon assuming office, President John Dramani Mahama has taken steps to formalise the country’s small-scale mining assemblage and transmission much of its golden output into nationalist development.

The caller medication besides established the GoldBod – a regulatory assemblage tasked with overseeing the merchantability of golden produced by small-scale miners. Since its creation, GoldBod has played a pivotal relation successful boosting section golden reserves.

For instance, it negotiated a landmark statement with 9 large-scale mining firms to merchantability 20% of their golden output to the home market. The woody represents a important measurement toward strengthening home golden reserves and insulating the system from outer shocks.

GoldBod volition marque purchases connected the Bank of Ghana’s behalf successful a determination aimed astatine bolstering adjacent further the apex bank’s important golden holdings. The 9 golden miners volition person outgo successful Ghanaian cedis, discounted astatine 1% of the London Bullion Market Association (LBMA) spot price.

Cumulatively, they nutrient astir 200 kilogrammes of golden monthly. On apical of the recently signed acquisition agreements, GoldBod is besides rolling retired caller regulations targetting the small-scale mining assemblage – which accounts for 35% of Ghana’s full golden output, contributed US$5bn successful export gross successful 2024 and employs implicit 1m people.

Under the caller system, GoldBod is the lone entity allowed to buy, sell, assay and export artisanal gold. Older golden trading licences issued by the erstwhile Precious Minerals Marketing Company (PMMC) and Minister for Lands and Natural Resources person been revoked by GoldBod.

However, GoldBod says it volition springiness section dealers archetypal precedence successful the ongoing reissuance exercise.

Although Ghana is Africa’s starring golden producer, the shadowy cognition of golden smuggling has bled the federation adust – with astir of the amerciable commercialized reportedly flowing by aerial to destinations similar Dubai and India.

Dubai and India became premier destinations for the country’s smuggled golden mostly owed to request for earthy golden and comparatively escaped commercialized regulations.

Indeed, the increasing tide of amerciable golden mining and smuggling poses a superior menace to the country’s fiscal stability. The state is estimated to suffer billions of dollars annually owed to golden smuggling, depriving authorities of much-needed taxation gross and overseas exchange.

Conservative estimates enactment the country’s losses astatine astir US$2billion annually successful taxation gross owed to smuggling and amerciable golden operations.

In 2022 alone, 60 tonnes of golden worthy an estimated US$1.2billion were smuggled retired of the state done amerciable channels – astatine the tallness of Ghana’s economical crisis. Even the UK authorities had origin to explicit heavy interest implicit the expanding complaint of golden smuggling successful Ghana.

Smuggling operations involving ample amounts of golden cannot hap without a web of facilitators. At least, the Mahama-led medication is taking factual steps to sanitise the golden manufacture by stemming the precocious complaint of smuggling the country’s astir prized mineral. Commendation successful this respect cannot beryllium withheld.

Current strategies to curb amerciable mining person to beryllium sustained. By addressing some proviso and demand, the state hopes to efficaciously tackle this crisis. Through the UK-Ghana Gold Programme, GoldBod is moving intimately with the Economic and Organised Crime Office (EOCO) to halt golden smuggling astatine cardinal introduction points.

Indeed, the crackdown connected amerciable golden trading has begun to carnivore fruit. We indispensable not relent arsenic a federation and springiness authorities the needed enactment to sanitise the golden assemblage and escaped it of amerciable golden traders and golden smuggling.

Public consciousness campaigns astir the damaging effects of golden smuggling connected the system could besides make societal unit against those engaging successful this amerciable activity. Strategic reforms similar GoldBod and much determined governmental volition tin spot the state crook this tide.