Ghana is exploring alternative routes for exporting gold as tensions in the Middle East threaten flights to the United Arab Emirates (UAE), a major destination for Ghanaian gold shipments.
Sources at the Ghana Gold Board (GoldBod), the state-backed agency responsible for buying and exporting artisanal and small-scale mining (ASM) gold, said contingency plans are already in place if disruptions worsen, as seen on Business Insider Africa.
A senior GoldBod official, speaking anonymously because they were not authorized to comment publicly, said the agency has identified alternative export routes outside the UAE, although shipments have not yet been affected.
“There is always a market for gold. We have people lined up who have been knocking for years, some even ready to pay a premium,” the official said.
Another source from a Ghanaian ASM mining company warned that a no-fly zone would severely impact trade.
“A no-fly zone declaration would affect us big time, with no trade and no foreign exchange. The local currency may be affected with its economic consequences,” the source said, according to Reuters.
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Traders say potential alternatives include gold trading and refining hubs in China and India, particularly Shanghai, though these routes would likely increase transportation and processing costs.
At the same time, Ghana is introducing reforms to formalize artisanal mining and reduce illegal gold trade. Earlier this year, the government announced plans to channel about 127 metric tons of ASM gold annually into legal supply chains.
Finance Minister Cassiel Ato Forson told Parliament that GoldBod will be required to purchase at least 2.45 metric tons of artisanal gold weekly under the reforms, which aim to generate more than $20 billion in annual inflows.
ASM gold production rose 63% last year to nearly 96 metric tons, accounting for about 52% of Ghana’s total gold output and valued at around $15.8 billion at current prices.
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Image Credit: The Habari Network Inc
