Ghana wants to optimize the benefits from its largely anarchical artisanal and small-scale mining (ASM) sector.
For this reason, Africa’s largest gold producer—and the sixth largest in the world—is ushering in a “new order” for gold trading.
As of April 30, no foreign company may purchase and export ASM gold. The move follows the annulment of all licenses held by foreign trading firms. The Ghana Gold Board (GoldBod), a state entity created in March, will now oversee all buying, selling, and export of ASM gold.
“Goldbod will give us better control over our gold exports and help shore up our foreign exchange reserves,” said Ghana Finance Minister Cassiel Ato Forson.
The West African nation has long wanted to restructure and streamline ASM mining, which accounts for one-third of its gold production, generating $5 billion in 2024. The subsector employs 1 million people and supports 4.5 million indirectly. Cumulatively, Ghana raked in $11.6 billion in gold exports last year.
Despite its importance, chaos reigns. Illegal mining, locally known as “galamsey,” thrives on child labor and is responsible for rapid land degradation, deforestation, and health risks.
By centralizing trading, Ghana hopes to end a mindbogglingly large culture of smuggling. In 2022 alone, 60 tons of gold worth an estimated $1.2 billion was smuggled out of the country.
Suppressing illegal trade is expected to result in increased revenues, with the ripple effect boosting reserves and stabilizing the local currency, the cedi.
The timing appears perfect. Global dynamics, including disruptions owing to last month’s US tariff announcements, are driving demand for gold; prices have soared 29% this year, to $3,500 per ounce in April. Some analysts expect prices to cross the $4,000-per-ounce threshold by the second quarter of 2026.
Ghana’s new gold order is a shock to foreign firms, however, which purchase most ASM gold and export it to international trading or refining companies based in Switzerland, the United Arab Emirates, India, and elsewhere.
To continue operating, these firms will have to source gold through GoldBod. This adds another layer of complication, since the new law sets a 14- to 21-day approval period for gold acquisitions, which threatens to disrupt supply chains and reduce earnings.