27TH JANUARY, 2025

ADDRESS BY THE MINISTER OF FINANCE AT THE INAUGURATION OF THE TECHNICAL COMMITTEE FOR THE ESTABLISHMENT OF THE GHANA GOLD BOARD (GOLDBOD)

Distinguished Members of the Press, Ladies and Gentlemen,

1. I extend a warm welcome to you all this afternoon as we convene here at the Ministry of Finance for a significant milestone in Ghana’s economic transformation.
2. Today, we officially inaugurate the Technical Committee tasked with developing the legal and operational framework for the establishment of the Ghana Gold Board (GoldBod). A key responsibility of this committee will be to draft a Bill that will underpin the formation of this institution, ensuring it is built on a strong legal and regulatory foundation.
3. The establishment of GoldBod is a flagship initiative envisioned by His Excellency President John Dramani Mahama, aimed at revitalizing our economy and ensuring the optimal management of Ghana’s gold resources for sustainable development.
4. The primary mandate of the Ghana Gold Board will be to serve as a dedicated institution that facilitates the structured purchasing, refining, and marketing of Ghana’s gold, ultimately contributing to currency stability and economic growth.

Rationale for the Establishment of the Ghana Gold Board

5. Ghana stands as Africa’s leading gold producer, a position that brings both opportunities and challenges. While gold remains our largest foreign exchange earner, its full potential remains largely untapped due to inefficiencies in its trade and management.
6. Historically, Ghana’s revenues from gold have been limited to traditional sources such as royalties and taxes. However, these earnings do not reflect the true value of our gold resources.
7. Despite our abundant gold reserves, the economic impact of gold mining has not been maximized. Issues such as unregulated gold trade, smuggling, and an inefficient purchasing system continue to deprive the country of much-needed foreign exchange.
8. It is now imperative for Ghana to transition from reliance on taxes and royalties to a comprehensive approach that ensures value addition across the entire gold value chain.
9. This means optimizing every stage of gold’s journey, from extraction to refining, value addition, and marketing—both locally and internationally.
10. The Ghana Gold Board will serve as a specialized agency that will facilitate the structured and transparent trade of gold, ensuring that Ghana derives maximum benefit from its mineral wealth.

Key Responsibilities of the Ghana Gold Board

11. The GoldBod will have a clear mandate to streamline and formalize gold trading in Ghana, particularly within the small-scale mining sector.
12. A key objective of GoldBod will be to enhance traceability in gold transactions and improve international credibility, ensuring compliance with global gold market standards.
13. The Board will implement measures to curb illegal gold trade and smuggling, ensuring that Ghana retains the economic benefits derived from its gold resources.
14. The current landscape of gold purchasing in Ghana is highly fragmented and uncoordinated, leading to inefficiencies and loss of revenue.
15. The Precious Minerals Marketing Company (PMMC) currently holds a mandate to buy and sell gold, but this mandate is not exclusive.
16. Various entities, including the Bank of Ghana, private aggregators, and the Minerals Income Investment Fund (MIIF), are also involved in gold purchasing under initiatives such as gold for forex, gold for reserves, gold for oil, and gold for cash.
17. Furthermore, numerous private individuals and foreign entities operate within Ghana’s gold market with export licenses and gold buying permits.
18. This lack of a centralized system has led to widespread gold smuggling, depriving Ghana of vital foreign exchange earnings and exacerbating the challenges of currency depreciation.

The Role of GoldBod in Addressing Challenges in Gold Trade

19. To resolve these challenges, the Ghana Gold Board will be mandated to regulate and streamline the gold trading sector.
20. Upon its establishment, GoldBod will act as the sole legal buyer of gold from small-scale miners, working through licensed aggregators and traders to create a structured and transparent gold trading system.
21. Additionally, GoldBod will have exclusive legal rights as the primary assayer, seller, and exporter of gold sourced from the small-scale mining sector.
22. The enabling legislation for GoldBod will amend relevant sections of the Minerals Commission’s export regulations and other ancillary laws to strengthen its regulatory role.
23. One of the core objectives of GoldBod will be to ensure 100% repatriation of foreign exchange earnings from gold exports. This will significantly support Ghana’s economic stability and enhance the value of the Cedi.
24. GoldBod will also introduce robust monitoring and compliance measures to curb black-market activities and illegal gold trade.
25. It is important to emphasize that GoldBod will not assume the regulatory functions of the Minerals Commission. Rather, it will complement the Commission’s role while focusing on gold trading and market regulation.
26. Furthermore, GoldBod will seek London Bullion Market Association (LBMA) certification, ensuring that Ghana’s gold meets global trading standards and attracts premium pricing.

Financial Commitment and Economic Impact

27. The Government of Ghana is committed to ensuring the success of GoldBod by providing a revolving fund to facilitate the purchase of all gold from the small-scale mining sector.
28. In 2024 alone, Ghana legally exported nearly $5 billion worth of gold from the small-scale mining sector.
29. However, research indicates that the value of gold smuggled out of Ghana from small-scale mining operations is nearly twice the official export figure.
30. This underscores the urgency of streamlining the small-scale mining sector, eliminating smuggling, and ensuring that all gold transactions are conducted through formalized channels.
31. By addressing these issues, Ghana stands to gain significantly in foreign exchange earnings, which will in turn strengthen the Cedi and stabilize the economy.

Technical Committee and Implementation Timeline

32. The Technical Committee tasked with drafting the legal framework and developing the operational structure of GoldBod consists of distinguished experts from relevant institutions.
33. Their collective expertise will be instrumental in ensuring that the Ghana Gold Board is built on a solid foundation with clear operational mandates.
34. The work of the committee will follow a structured roadmap, with key milestones including:

• Drafting of the GoldBod Bill
• Stakeholder consultations with mining industry players, regulatory bodies, and civil society organizations
• Presentation of the Bill to Parliament for passage into law
• Establishment of administrative and operational structures for GoldBod
• Official commencement of operations by GoldBod

35. The government expects the committee to work diligently and efficiently to fast-track the establishment of the Ghana Gold Board.
36. I urge all stakeholders, industry players, and the general public to give their full support to this initiative.

Conclusion

37. The establishment of the Ghana Gold Board marks a pivotal moment in Ghana’s efforts to transform its gold industry.
38. By creating a structured and transparent gold trade system, GoldBod will enhance Ghana’s economic stability, maximize gold revenues, and establish Ghana as a key player in the global gold market.
39. I express my sincere appreciation to the members of the Technical Committee for their dedication to this task and look forward to their recommendations.
40. Thank you all for your time and attention.