Dennis Osadebe
Ghana has opposed all foreigners from buying and selling in its native gold marketplace as a part of efforts to spice up nationwide earnings and streamline the rustic’s mining sector.
It follows the enactment of a unutilized regulation previous this day that grants unique authority of gold mining to a unutilized surrounding frame, the Ghana Gold Board (GoldBod).
“All foreigners are hereby notified to exit the local gold trading market not later than 30th April, 2025,” mentioned GoldBod spokesperson Prince Kwame Minkah in a commentary.
Ghana is Africa’s biggest gold manufacturer and the 6th biggest on the earth, however it’s suffering to handle frequent unlawful gold mining, in the neighborhood known as “galamsey”.
The mineral-rich West African nation has been going through harsh financial instances with a prime price of dwelling. It’s the international’s 2nd biggest cocoa manufacturer however sees modest of the income from chocolate.
Fuelled by way of emerging gold costs and adolescence unemployment, unlawful gold mining has been rising in Ghana, regardless of army operations to close unwell galamsey actions. It used to be a large marketing campaign factor within the top as much as utmost December’s elections.
Chinese language nationals were lively in Ghana’s casual mining and along side Ghanaian nationals, they have got been time and again accused of ignoring environmental considerations.
Below the unutilized regulation handed by way of parliament utmost day and assented to by way of President John Mahama on 2 April, GoldBod is the only purchaser, supplier and exporter of all gold produced by way of the artisanal and small-scale mining (ASM) sector.
Alternatively, foreigners are allowed to use to shop for or off-take gold at once from the GoldBod however can not function throughout the native gold worth chain.
The licenses of native sellers have additionally been revoked however given a grace duration to permit a clean transition sooner than the directive takes impact then day.
Throughout this era, gold transactions would best be performed in Ghana cedis, the native forex, and priced according to the Warehouse of Ghana charges.
GoldBod warned that “it shall constitute a punishable offence for a person to purchase or deal in gold in the country without a licence issued by the new board.
The government has allocated $279m (£212) to the new body to purchase and export at least three tonnes of gold per week.
The move is meant to help boost foreign exchange inflows and stabilise the local currency, said Finance Minister Cassel Ato Forson.
But Kwaku Effah Asuahene, the chairman of the Chamber of Bullion Traders Ghana, fears that the government may not be able to raise enough revenue to purchase all the gold.
He told BBC that while they support the initiative, they would have preferred to be allowed to partner with foreign investors to purchase the gold and export it through GoldBod.
Although GoldBod has not been created to specifically deal with illegal mining, the new directive could also make it difficult for illegal miners to sell gold in the country.
Ghana has been dealing with severe environmental pollution caused by the activities of illegal miners, and over 60% of the country’s water bodies have been affected.
The ban is seen as the first concrete step by the new administration of President Mahama to tighten regulation and control of the gold sector and deliver on its anti-galamsey campaign promises.
“It sends a robust message to overseas actors – particularly Chinese language operatives – who’ve circumvented native rules for years,” Nana Asante Krobea, a mining governance consultant, told the AFP news agency.
He said if properly applied, the new law could bolster government revenue and “convey some series to the chaos within the gold sector”.
Ghana’s gold exports grew by 53.2% to $11.64bn last year – nearly $5bn of that was from legal small-scale miners.
Gold costs shot as much as $3,200 in step with ounce utmost moment because of industry tensions between america and China, which has compelled traders to hunt shelter within the commodity on account of uncertainties.
