Foreigners barred from Ghana’s small-scale gold market

Ghana has directed all foreign players to exit its local gold trading market by April 30, as part of a new plan to control the trade in artisanal and small-scale mined gold.

In a statement released on Monday, a new government body announced that the country is moving away from its previous system that allowed both local and foreign companies with export licences to purchase and export gold from small-scale miners.

The statement said the newly formed GoldBod will now be the only body allowed to buy, sell, test, and export artisanal gold in Ghana.

All previous licences issued to companies for this purpose are no longer valid.

"Foreigners must leave the local gold trading market by April 30, although they can apply to buy or take off gold directly from the GoldBod," the statement said.

The new measure is aimed at increasing Ghana’s earnings from gold, cutting down on smuggling, and streamlining the way gold is sourced and sold from small-scale miners.

In January, Finance Minister Cassiel Ato Forson said the new body would help Ghana gain more from its gold sales and support the stability of the national currency.

Ghana is Africa’s top gold producer.

In 2024, the country exported gold worth $11.64 billion (Sh1.5 trillion), marking a 53.2% rise from the previous year.

Nearly $5 billion (Sh648.5 billion)  of these exports came from legal small-scale mining.

The changes come at a time when gold prices are on the rise.

On Friday, gold crossed the $3,200 (Sh 414,407) per ounce mark for the first time.

Analysts say the ongoing trade tensions between the United States and China have shaken global markets, leading more investors to buy gold, which is often seen as a safe investment during uncertain times.

The Ghanaian government hopes that by giving GoldBod full control of the small-scale gold trade, the country will be better positioned to reduce losses from illegal exports and benefit more from rising global prices.