Ghana plans to direct about 127 metric tons of gold each year from artisanal and small-scale mining (ASM) into the formal market under revised sector reforms aimed at boosting foreign-exchange earnings and reducing smuggling, the country’s finance minister said on Wednesday, according to Reuters.
Across Africa, governments are struggling with large-scale gold leakage from ASM operations, losing billions of dollars annually as undeclared gold is smuggled through porous borders to global trading hubs such as Dubai.
According to non-profit foundation Swissaid, Ghana, Africa’s top gold producer, lost about $11.4 billion between 2019 and 2023 due to such leakages.
Finance Minister Cassiel Ato Forson told Parliament that the Ghana Gold Board will be required to purchase at least 2.45 tons of ASM gold each week and combine the volumes into a formal supply chain targeting more than $20 billion in annual inflows.
He said the reforms follow a surge in artisanal gold production, supported by rising global gold prices and the creation of GoldBod in 2025, which helped increase Ghana’s total gold output to about 186 tons that year.
Don’t Miss This:
Ghana To Begin Local Gold Refining Drive This Year
Forson added that from next month, GoldBod will assume full responsibility for negotiating off-take agreements and selling all ASM gold it acquires.
The agency will raise financing to hold three to four weeks’ worth of gold purchases and will use derivative and hedging tools to manage price risks. Currently, the Bank of Ghana finances ASM gold purchases.
“To disincentivise smuggling, GoldBod may employ price incentives through spot world market price purchases and bonuses for licensed miners,” Forson said.
The Bank of Ghana and GoldBod will also sign an agreement requiring that all foreign exchange generated under the programme be sold exclusively to the central bank at an agreed rate.
The minister said the reforms will also cover environmental oversight, stronger enforcement, improved traceability systems, expanded local refining capacity, and measures to reduce operating costs.
At the same time, Ghana is moving forward with changes to the mining sector’s financial framework, which large-scale producers argue could discourage investment and slow production.
Don’t Miss This:
Ghana Offers Levy Cut To Secure Backing For Higher Gold Royalties
Image Credit: Freepik
