Ghana Bans Foreigners from Local Gold Trade

In a bold and sweeping reform, Ghana has banned all foreign nationals from participating in the purchase or trade of artisanally mined gold within its borders, effective 1 May 2025. This comes as the country rolls out a new law centralising all small-scale gold trade under the Ghana Gold Board (GoldBod), a newly established regulatory authority.

The directive, issued on Monday by GoldBod spokesperson Prince Kwame Minkah, states that “all foreigners are hereby notified to exit the local gold trading market not later than 30th April, 2025.” The announcement follows the passage of the Ghana Gold Board Bill by Parliament on 29 March and its signing into law by President John Dramani Mahama on 2 April.

Under the new legal framework, GoldBod becomes the exclusive buyer, seller, assayer, and exporter of gold produced by licensed artisanal and small-scale miners (ASM). It assumes the role previously held by the Precious Minerals Marketing Company (PMMC), whose licenses will now be rendered void.

Also read: Ghanaians Demand Action Against Illegal Mining in Peaceful Protests

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Strategic Shift in Resource Governance

As Africa’s largest gold producer and the sixth globally, Ghana has long grappled with challenges in its gold sector, particularly illegal small-scale mining known locally as galamsey. These activities have not only fuelled environmental degradation but also undermined national revenue collection.

This reform marks a significant shift in the government’s attempt to assert control over the lucrative gold industry and address long-standing issues of illegal trading, environmental harm, and illicit foreign involvement.

“No entity or individual may purchase or engage in the gold trade in Ghana without a licence issued by GoldBod. Violators will be subject to criminal prosecution,” the board’s statement warned.

GoldBod has been allocated $279 million to commence operations and is mandated to purchase and export a minimum of three tonnes of gold per week. All transactions will be conducted in Ghana cedis, and prices will align with official Bank of Ghana exchange rates.

Impacts on Stakeholders and Reactions

Foreign nationals, particularly Chinese traders who have long been linked with illegal mining operations and informal gold buying, are the primary targets of this policy shift. These actors have been repeatedly accused of side-stepping Ghanaian laws and contributing to the destruction of local ecosystems.

However, the law also affects local dealers. While their licenses have also been revoked, a short grace period has been granted to ease the transition. They may apply to operate under GoldBod or become agents.

“This is a crucial first step in restoring order in our gold sector,” said Nana Asante Krobea, a mining governance expert. “It sends a clear message that Ghana is serious about reclaiming sovereignty over its natural wealth.”

Nonetheless, some concerns have been raised. Kwaku Effah Asuahene, chairman of the Chamber of Bullion Traders Ghana, supports the initiative but expressed scepticism about the government’s capacity to single-handedly purchase all artisanal gold without foreign investment support.

“We would have preferred to partner with the state and foreign investors through GoldBod, rather than be entirely excluded,” he told the BBC.

Economic and Political Context

Ghana’s gold exports surged by 53.2% in 2024, reaching $11.64 billion, with nearly $5 billion from legal small-scale mining. However, the sector has been plagued by unregulated mining, leading to severe environmental damage, with over 60% of Ghana’s water bodies reportedly affected.

This decisive move is seen as a fulfilment of President Mahama’s campaign promises to combat galamsey and reclaim national control over natural resources. Finance Minister Cassel Ato Forson noted the importance of this reform in boosting foreign exchange inflows and stabilising the Ghanaian cedi.

“We are reclaiming what belongs to the Ghanaian people,” said President Mahama in a recent address. “This is not just about gold. It is about sovereignty, responsibility, and building a future we own.”

The ban may also help reduce gold smuggling and ensure that all exported gold is properly taxed—thereby increasing public revenue and enhancing transparency in the mineral sector.