Foreigners face gold trading ban in Ghana beginning May 1

A newly established regulatory authority for gold exports in Ghana declared on Monday that foreign buyers will no longer be permitted to purchase or trade artisanally mined gold in the nation, which is Africa's leading gold producer.

Starting May 1, all gold transactions must be conducted with licenses issued by the newly formed Ghana Gold Board, also referred to as GoldBod, as stated in an announcement from the organization.

Licenses that were previously granted by the Precious Minerals Marketing Company, which handled the marketing of the country's mineral output, will no longer be recognized.

The announcement emphasized that from next month onward, no entity will be allowed to buy or engage in gold trading in Ghana except for GoldBod, which was established to regulate gold commerce and enhance revenue from exports.

According to the new legislation, GoldBod will serve as the exclusive buyer, seller, assayer, and exporter of all gold produced by licensed small-scale miners in Ghana, with criminal charges applicable to those who operate without a license from the board.

Historically, both local and international companies with export licenses had the ability to purchase and export gold from small-scale miners in Ghana.

On March 29, Parliament approved the Ghana Gold Board bill, which President John Dramani Mahama signed into law on April 2.

Prince Kwame Minkah, a spokesperson for GoldBod, informed The Associated Press that "the trading activities of GoldBod are anticipated to lead to the accumulation of necessary reserves to bolster our foreign exchange and, consequently, address gold smuggling."

The persistent issue of illegal gold mining, locally termed 'galamsey,' was a significant topic during last year's presidential election campaign in Ghana and raised concerns among voters, leading to protests and criticism of the outgoing administration.

Ghana ranks as the sixth largest gold producer globally, yet illegal mining has surged as individuals seek employment in a struggling economy, resulting in environmental pollution of rivers and other areas, despite government efforts to curb the practice.

Before the bill was approved by Parliament, Finance Minister Dr. Cassiel Ato Forson stated: "The GoldBod initiative will enable Ghana to fully capitalize on the entire gold value chain — encompassing extraction, refining, value addition, and marketing — at both local and international levels."