Editorial: Ghana Gold Board to streamline sector operations

Government recently inaugurated the Technical Committee of the Ghana Gold Board, setting sights on stabilising the nation’s currency through structured management of gold resources.

Establishing the Ghana Gold Board is expected to positively impact the cedi by boosting foreign exchange earnings. Speaking at the inauguration, Finance Minister Dr. Cassiel Ato Baah Forson described the initiative as a vital reform to address inefficiencies in Ghana’s gold sector, which remains fragmented and uncoordinated despite being Africa’s leading gold producer.

Dr. Forson also highlighted the need to move beyond traditional revenue sources such as royalties and taxes, which have limited the country’s economic benefits from gold.

Consequently, the Ghanaian economy has not realised the full benefit from its gold resources. It is high time the nation acts to maximise the full benefit of its naturally-endowed gold resources.

It involves optimising every stage of the value chain – from extraction to refinery, value addition and marketing, both locally and internationally. Therefore, the Ghana Gold Board will serve as sole buyer of gold from the small-scale mining sector, a move intended to formalise and streamline operations in the industry.

More importantly, Dr. Forson explained that the board will work to curtail illegal activities which have plagued the sector.

“The chaos in Ghana’s gold purchasing sector prevents the nation fully benefitting from its gold resources. Numerous individuals, foreign agencies and companies with export licences are buying gold from unapproved sources, leading to widespread smuggling and depriving the state of much-needed foreign exchange.

“Streamlining the small-scale gold mining sector, curbing smuggling and directing gold purchases through formal channels will help Ghana improve its foreign exchange accumulation and stabilise our beloved cedi,” he added.

The Board will also be mandated to ensure traceability, promote international certification and establish regulatory compliance.

A key objective of the Ghana Gold Board will be to formalise trading gold from the small-scale mining sector, promote traceability and pursue London Bullion Market Association certification in the shortest possible time.

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