Ghana has been the leading producer of gold in Africa for the past 3 years and the 6th producer of gold in the world.
Ghana outperformed South Africa, Africa’s leading producer of gold for decades in the last three years (2022, 2023 & 2024);
Ghana produced 379 metric tons (12.6 million ounces) between 2022 -to-:2024 as compared to
South Africa’s production of 320 metric tons (10.46 million ounces) within the same period.
Difference: Ghana outproduced South Africa by 59 metric tons (2.14 million ounces) over the period.
Ghana’s total output over these three years significantly exceeds South Africa’s, driven by consistent growth, while South Africa’s production remains relatively flat or slightly declining. These totals reflect Ghana’s rise as Africa’s leading gold producer during this period.
In spite of this enviable record, the country has failed to take full advantage of the increase in production and soaring prices to mobilize the needed revenue for national development. The price of the precious mineral keeps going up due to global dynamics. Today many investors are selling off their Bitcoin investments to buy gold in Europe and America. Gold prices have now crossed $3,000 a gram today.
The Goldbod with its proposed mandate of regulating the small scale mining sector which contributes 40% of the total mining production of the country is going to be the main catalyst for realizing the full benefit of the exploitation of the precious metals.
Last year (2024), Ghana exported gold worth 11.5 billion dollars to UAE, CHINA AND INDIA with small scale sector production amounting to $5 billion dollars.
In an attempt by the Government of Ghana to use the establishment of the GOLDBOD to reap substantial economic benefit from gold production, the 2025 budget has allocated $279 million to GOLDBOD, with plans to buy and export 3 tonnes of gold weekly from small-scale miners, signaling strong governmental commitment. If implemented effectively, GOLDBOD could transform the current gold price boom into a long-term economic advantage for Ghana by ensuring more of the windfall stays within the country, rather than being lost to smuggling or unregulated markets.
Effective implementation of GOLDBOD strategy could thus transform the gold windfall into a dual engine for fiscal and monetary stability as follows:
Increased Tax Revenue: By centralizing gold purchasing and exports, GOLDBOD aims to bring a larger portion of Ghana’s gold production from the small-scale sector, which accounts for 40% of output, into the formal economy. This will reduce smuggling, which is estimated at nearly $5 billion annually, and ensures more gold is legally traded and taxed. With GOLDBOD as the sole buyer, transactions can be tracked and subjected to appropriate levies, such as export taxes and royalties, which have historically been evaded in illicit markets.
Additionally, the plan to buy 3 tons of gold weekly and fair pricing for miners, could discourage black market sales, further aligning production with the tax net, while the good intentions of government to reinvest profits into community projects could stimulate local economic development, and indirectly expand the tax base.
Exchange Rate Stability: GOLDBOD’s strategy to accumulate gold reserves and curb smuggling directly will enhance Ghana’s foreign exchange inflows, a critical factor for stabilizing the cedi, which has faced depreciation pressures in 2024. Gold exports nearly doubled Ghana’s trade surplus to $4.98 billion, illustrating their forex potential. By capturing more of the $11.64 billion official export value and potentially billions more previously lost to smuggling. GOLDBOD could increase dollar inflows, strengthening the country’s balance of payments. Building gold reserves providing a buffer against currency volatility, as gold is a globally accepted asset that can be liquidated or used as collateral during economic crisis. This reserve accumulation, combined with higher export earnings, reduces reliance on external borrowing and supports the cedi’s value, especially amid a gold price peak over $3,000 per gram in mid March 2025.
However, success hinges on overcoming challenges like corruption, enforcement, and ensuring the board operates transparently without duplicating existing institutions like the Minerals Commission or the Bank of Ghana.
The ongoing stakeholders consultations being embarked upon by the GOLDBOD Technical Committee led by Sammy Gyamfi could help iron out all outstanding issues and bottlenecks that may hamper the smooth implementation of the lay down plans. It’s refreshing to note that the program has the full support of the current Finance Minister, Dr. Casiel Ato Forson, the Bank of Ghana Governor Dr. Johnson Asiamah and Small Scale Miners Association of Ghana, who referred to the program as their brainchild.
Source/Mybrytfmonline.com/ ALI SIDI BELLO,
DIRECTOR Of ELECTIONS ER.
