Ghana's Goldboard (Goldbod) is a newly formed state entity accused of transforming how the country's most valuable natural resources are misused, traded and regulated, and has signed new purchase agreements with nine gold mining companies operating in the country.
“Under the contract, the mining company will provide 20% of the gold that will attempt to export abroad to Goldbod in the form of drewers,” read a statement issued by Goldbod. “This contract represents an important step in optimizing the national interests from Ghana's gold resources.”
Goldbod will make purchases on behalf of the Central Bank of Ghana and make a move aimed at further strengthening Apex Bank's important gold holdings. Companies included in this program include Golden Team Mining Company, Achroma Gold, Adamas Resources, Namdini Mining Cardinal, Goldstone Acrokari, R International Group (GH), Xtra Gold Mining, Prestea Sankofa Gold, and Gan HE Mining Resource Development.
Nine gold miners will receive payments at Cedis, Ghana, and receive a discount at 1% of the London Bullion Market Association (LBMA) spot price. They cumulatively produce around 200 kilograms of gold each month, Reuters reported.
Ghana's central bank has expanded its gold purchasing programme significantly in recent years, with official data showing that its holdings have increased from 8.7 metric tons in 2022 in February this year to 30.8 metric tons. This agreed to purchase 20% of the output of members of industry groups, including global heavyweights such as Goldfield, Newmont, Anglo-Lodau-Angkordo-Anko Mining, after Africa's biggest gold producer made similar purchase arrangements to major mining companies in 2022.
Doubling with small miners
In addition to the newly signed purchase agreement, Goldbod has also rolled out new regulations targeting the small mining sector, which accounts for 35% of Ghana's total gold production, donating $5 billion in export revenue in 2024 and employing over 1 million people. There is a shift away from a system in which local and foreign companies with export licenses can purchase and export gold directly from artisans or small-scale mining.
Under the new system, Goldbod is the only entity permitted to purchase, sell, assay and export artisan gold, the statement said. The old gold transaction license issued by the former precious mineral marketing company (PMMC) and the Minister of Land and Natural Resources has been revoked by Goldbod, which launched a fresh licensing program.
Goldbod said it will give local dealers top priority with the ongoing reissue exercise. Foreigners are being asked to create space for local players, but say that if they still want to participate, they can be applied “to buy or take off gold directly from the Goldbod,” emphasizing that the new system streamlines the purchase of gold from small miners, increases revenue and reduces smuggling.
Goldbod had issued an April 30 deadline for all small miner companies and gold dealers to reapply for their licenses, but it has allowed a three-week extension until May 21.
Acting CEO of Goldbod Sammy Gyamfi told Accra's media that the extension is to meet Ghanaian gold traders' demands for additional time before moving to a new regulatory framework. “We believe this is fair and appropriate for serious applicants who are complying with the law and intend to obtain a Gold Board license,” he said.
Analysts want a measured approach
“The gold industry in Ghana is about to undergo the most dramatic transformation of decades,” argues experts at Dowuona & Company, a Ghanaian law firm. “The creation of Goldbod is the fulfillment of the commitments made in the Manifesto of President Mahama and the new NDC government,” they note in the briefing.
They argue that the creation of Goldbod is aimed at promoting the addition of value to Ghana's gold resources, helping the Bank of Ghana to accumulate gold reserves, and generating forex through gold trading.
Due to the scale of transformation assumed under Goldbod's broad mission, experts argue for the need for a measured approach in which Goldbod implements reform agendas without unnecessarily shaking the trust of investors in the gold sector.
“The Goldbod's multiple missions — regulators, commercial operators, financiers, quality aids, and anti-crowded enforcers — create inherent tensions that require exceptional governance and control,” they argue.
“Organisations must simultaneously cultivate trust with international partners, maintain operational efficiency in a competitive global market, and balance political orders with commercial reality.”
Patrick Stevenson, director of the Institute for Fiscal Governance and Policy in Ghana, stresses the need for Goldbod to carefully consider the need for reforms to the risk of sucking investors.
He says that excessive and rapid reform processes that cannot properly engage African businesses, particularly investors, can send “wrong signals” to foreign investors.
“It seems like a lot of things are happening pretty irregularly at the moment, given the government's decisions. It may give a different impression on potential investors. It could be a source of concern, especially FDI (foreign direct investment).” “It may send certain signals to foreign investors that their character may seem almost nationalistic,” he argues.
He says concerns about government settlement of gold purchases in local currencies could also place importance on investors' sentiment.
“The challenge is that payments are made in local currency. These mining companies pay for importing equipment in foreign currency. You have the foreign exchange risk we should consider,” he argues.
I'm using bull markets
The recent surge in global gold prices has been a boon for Ghana and has helped to raise investors' trust.
Gold is currently trading at $3,258, approaching a historic high of around $3,350 per troy ounce, and has been bolstered by more than 25% since the start of the year. Over the past five years, gold's price performance averaged 94.18%.
Analysts attribute this trend to an increasing appeal of gold amid multiple global shocks that have shaken up global financial markets. The price of gold appears to benefit from a decline in confidence in the US dollar as a result of President Trump's imposing drastic universal tariffs.
The current Gold Bull Market is boosting the economic fortunes of major African producers. For example, in 2024, Ghana acquired $11.6 billion from gold exports. This is a 52.6% increase from $7.6 billion the previous year. This growth was driven by a 30% increase in gold prices in 2024, following a 15% increase in 2023. In particular, gold accounted for 57% of Ghana's total export revenue in 2024, doubleping the country's trade surplus last year to $4.9 billion.
Anan Taweia, an economist and risk analyst covering Ghana, says that the surge in gold revenue has put Ghana on a healthy macroeconomic foothold for businesses in Africa. He further claims he helped attract new investments from foreign companies.
“Foreign investment in Ghana's gold sector is robust, illustrated by China's Zijin Mining Group's $1 billion acquisition of Newmont's Akyem Gold Mine project in 2024. Such a transaction reflects strong interest from international investors and is based on favorable terms and high prices,” he says.
Taweir urges policymakers to not be engrossed in the good news of the present, but instead consider the cyclical nature of the gold market. Preparing for a potential reversal of trends is essential for long-term stability, he argues. He acknowledges the limited advancement in the sector, but advocates broad economic diversification as an important strategy.
“Despite debate over economic diversification, Ghana's economy relies heavily on gold, crude oil and cocoa, which accounted for 78.2% of its export revenue in 2024.
