Ghana bans foreigners from trading gold to boost local economy

In early April 2025, Ghana's newly established regulatory body for gold exports, known as the Ghana Gold Board (GoldBod), announced significant changes in the country's gold trading policies. As Africa's largest gold producer, Ghana has now restricted the ability of foreigners to buy or trade gold that has been mined on a small-scale basis. Starting May 1, 2025, all gold transactions must be conducted through GoldBod, which will oversee purchases, sales, and exports, eliminating the previous system where both local and foreign companies could acquire gold through export licenses. This decision follows a longstanding issue with illegal gold mining, locally referred to as 'galamsey', which has been exacerbated by the current economic environment. The rise of illegal activities in the sector had prompted widespread criticism during the preceding presidential election campaign, pushing the government to take action. The new policies aim to maximize revenue from gold exports while curbing illegal mining, which has not only led to environmental degradation but has also raised concerns among voters regarding the government's capability to manage this crucial resource effectively. The legislative foundation for this new regulatory framework was solidified on April 2, 2025, when President John Dramani Mahama signed the Ghana Gold Board bill into law, immediately following its passage in Parliament. Under this framework, anyone dealing in gold without a license from GoldBod faces criminal charges, reinforcing the state's control over the gold value chain. Finance Minister Dr. Cassiel Ato Forson indicated that the establishment of GoldBod represents a crucial step toward ensuring that Ghana maximizes the economic benefits of its gold resources. The government believes that this strategy will help build the necessary foreign reserves while addressing the ongoing challenges linked to gold smuggling and unregulated mining practices. These developments mark a significant shift in Ghana's gold trading landscape, aiming to bring order and regulation to an industry riddled with challenges.