Ghana has begun implementing sweeping reforms to regulate its gold trade, with the newly established Ghana Gold Board (GoldBod) opening applications for trading licenses this week. The move follows April’s passage of the Ghana Gold Board Act, which centralizes control over small-scale gold transactions under the state-owned entity.
Under the new framework, Ghanaian citizens and locally owned companies can now apply for four license types covering aggregation and gold buying. Additional permits for refining, storage and transportation will become available in July. The system replaces previous licensing through the Precious Minerals Marketing Company, with all existing non-large-scale mining licenses now invalid.
The reforms come as Ghana seeks to formalize a sector that exported $11.6 billion in gold last year, nearly half from small-scale operations. Finance Ministry estimates suggest up to 30% of production leaks through smuggling networks, depriving state coffers of critical foreign exchange.
“These measures will ensure Ghanaian ownership of our gold value chain while improving transparency,” a GoldBod spokesperson told reporters. The board has set an April 30 deadline for foreign traders to exit local markets, though international firms may still purchase directly from GoldBod.
Industry analysts note the changes could significantly impact regional gold flows. Ghana neighbors Burkina Faso and Mali, where artisanal gold often crosses porous borders for processing. The new system requires all small-scale production to be sold exclusively to GoldBod before export.
Small-scale miners’ associations have expressed cautious optimism, hoping formalization will stabilize prices. However, some traders worry about bureaucratic bottlenecks. “The success hinges on GoldBod’s ability to pay fair prices promptly,” said Kwame Asante, a licensed buyer in Kumasi.
The government anticipates the reforms will help close Ghana’s $1.9 billion trade deficit by capturing more value from its second-largest export commodity. GoldBod will implement a centralized assay and quality control system to standardize pricing across the country.
As Africa’s largest gold producer, Ghana’s regulatory experiment is being closely watched by other resource-rich nations seeking to balance local empowerment with foreign investment needs. The coming months will test whether this model can curb illicit trade while maintaining the sector’s economic vitality.
