By Christian Kpesese
Ghana’s decision to centralise gold trading under a new state institution is reshaping the country’s bullion market, delivering a sharp rise in export earnings, improved foreign-exchange inflows and tighter oversight of artisanal mining, even as debate continues over short-term accounting losses cited in an IMF-supported programme.
In April 2025, Africa’s largest gold producer overhauled its gold marketing architecture with the establishment of the Ghana Gold Board (GoldBod) under the Ghana Gold Board Act, 2025 (Act 1140), replacing the six-decade-old Precious Minerals Marketing Company (PMMC). The reform formed part of a broader strategy to formalise the artisanal and small-scale mining (ASM) sector, curb smuggling and strengthen macroeconomic buffers through higher and more predictable foreign-exchange receipts.
Gold remains central to Ghana’s economy, accounting for a substantial share of export revenues, employment and fiscal receipts. National output rose to about 4.8 million ounces in 2024 from roughly 4 million ounces a year earlier, with small-scale miners contributing an estimated 39% of production one of the fastest-growing segments of the industry.
A Centralised Market Structure
Under Act 1140, GoldBod was mandated as the sole buyer, assayer, seller and exporter of gold produced by licensed small-scale miners. All previous licences issued by the PMMC or the Minister responsible for Mines to non–large-scale operators were invalidated, creating a unified, state-controlled system for aggregation, pricing, quality assurance and exports.
The centralised market structure represents a deliberate policy shift away from fragmented private trading toward a coordinated model designed to reduce information asymmetries, improve price transparency and limit revenue leakages that historically undermined Ghana’s balance of payments.
The advent of GoldBod which consolidates buying power and export channels, has strengthen the state’s ability to capture export proceeds fully within the formal financial system an outcome with direct implications for exchange-rate stability and reserve accumulation.
A recent independent report published by the department of economics of the University of Ghana acknowledged the significant impact of the GoldBod on the Ghanaian economy,
Export Earnings and Balance-of-Payments Effects
The impact on export earnings has been swift. Between January and mid-October 2025, GoldBod and PMMC jointly facilitated exports of 81,719 kilograms of ASM gold valued at more than $8 billion almost double the $4.61 billion recorded for the whole of 2024.
From February to May alone, GoldBod purchased and exported about 41.5 tonnes of ASM gold worth roughly $4 billion. Industry sources say this marked the first time small-scale gold exports exceeded those from large-scale mines, reflecting improved formalisation, tighter compliance and more competitive pricing for miners.
Data from the Ministry of Finance’s 2025 Mid-Year Fiscal Policy Review show that small-scale gold exports in the first half of the year reached 51.5 tonnes valued at approximately $5 billion—representing a 100% increase in volume and a 180% rise in value compared with the same period in 2024.
The University of Ghana analysis identifies these inflows as a key transmission channel through which GoldBod is affecting macroeconomic outcomes. Higher recorded exports, the report argues, have strengthened Ghana’s current account position, boosted gross international reserves and reduced short-term pressure on the cedi, particularly during periods of global financial volatility.
Currency Stability and Monetary Policy Linkages
The report further highlights the importance of GoldBod’s coordination with the Bank of Ghana, noting that predictable gold export receipts improve liquidity management and enhance the central bank’s capacity to smooth exchange-rate fluctuations. While cautioning that gold exports alone cannot resolve structural fiscal challenges, the study concludes that the GoldBod framework provides a more reliable anchor for foreign-exchange inflows than the previous decentralised system.
Officials say improved traceability and repatriation of proceeds have reduced the gap between gold produced and gold officially exported, a long-standing weakness in Ghana’s external accounts.
Crackdown on Smuggling and Informality
GoldBod was also established to curb gold smuggling, which authorities estimate previously cost Ghana at least $1.5 billion annually in lost revenue. A centralised aggregation and export system, combined with stepped-up enforcement, has tightened controls over gold movements and export approvals. Several smuggling networks have since been dismantled through joint operations involving security agencies.
The University of Ghana report supports this approach, noting that reduced smuggling not only raises fiscal revenues but also improves the accuracy of national accounts and export statistics—critical for macroeconomic planning and IMF programme assessments.
GoldBod has aligned its operations with national efforts to combat illegal mining, locally known as galamsey, working alongside the National Anti-Illegal Mining Operation Secretariat (NAIMOS). Analysts caution, however, that deeply entrenched informal activity may persist in areas where enforcement capacity remains constrained.
IMF Loss Estimates and Policy Debate
Despite the strong export performance, GoldBod has come under scrutiny following references in an International Monetary Fund report to approximately $214 million in losses linked to Ghana’s domestic gold operations. Critics argue that the IMF assessment focused narrowly on short-term financial flows without fully accounting for broader macroeconomic gains.
GoldBod Chief Executive Officer Sammy Gyamfi has rejected the loss claims, insisting that the programme’s net benefits particularly in foreign-exchange retention, export growth and market control—outweigh what he describes as accounting mismatches. The University of Ghana report echoes this view cautiously, suggesting that transitional costs should be weighed against longer-term structural benefits when evaluating the programme’s overall impact.
Policy Review and Outlook
The debate is expected to continue into 2026 as Bank of Ghana Governor Dr Johnson Asiama has announced plans for a joint policy workshop involving the central bank, GoldBod and the Ministry of Finance to review and refine the Domestic Gold Purchase Programme in line with international best practice.
“We encourage evidence-based analysis and diverse perspectives on such a critical programme,” Asiamah said at the University of Ghana’s 77th Annual New Year School, stressing that institutional collaboration is essential for sustainability.
Looking ahead, proponents argue that deeper formalisation of the ASM sector could unlock even greater gains. Government projections suggest annual small-scale gold earnings could reach $12 billion if compliance, productivity and environmental standards continue to improve.
With increasing emphasis on digital tracking, traceability and responsible mining, GoldBod is positioning Ghana for a shift toward ethical sourcing and greater domestic value retention. As the system matures, its interaction with monetary policy, fiscal discipline and reserve management will remain under close scrutiny.
For now, the export surge signals a pivotal moment in Ghana’s effort to extract more durable macroeconomic value from its most important mineral resource even as questions of governance, cost and efficiency remain part of the national conversation.
The writer, Christian Kpesese, is the Managing Editor for Natural Resources News (NR NEWS).
