Ghana Bans Foreigners from Local Gold Trading in Major Overhaul

Ghana, Africa's leading gold producer, has announced a sweeping ban on foreigners trading in its local gold market, effective 1 May 2025. The move, part of a broader effort to reform the gold sector, aims to increase national earnings, reduce smuggling, and centralise artisanal gold trade under a new state authority, the Ghana Gold Board (GoldBod).

Key Changes: Foreigners Ordered to Exit by April 30

All foreign nationals must exit Ghana's local gold trading market by 30 April 2025.
Foreigners may still apply to buy or offtake gold directly from GoldBod, but can no longer participate in the local supply chain.

Existing export and trading licences for both local and foreign entities have been revoked; only GoldBod is now authorised to buy, sell, assay, and export artisanal gold.
All gold transactions must be conducted in Ghanaian cedis, priced according to the Bank of Ghana's reference rate.

For more details, see the original Reuters report.

Why the Ban? Government's Goals and Economic Context

The Ghanaian government's decision is driven by several urgent priorities:

Boosting Revenue: Ghana's gold exports surged by 53.2% in 2024 to $11.64 billion, with nearly $5 billion from legal small-scale mining. Centralising trade is expected to further increase state earnings and foreign exchange reserves.
Reducing Smuggling: The previous system allowed both local and foreign companies to buy and export gold from small-scale miners, making it difficult to track and tax all transactions. The new GoldBod monopoly aims to curb illicit flows and improve regulatory oversight.

Stabilising the Currency: By ensuring more gold sales are routed through official channels, the government hopes to support the Ghanaian cedi and strengthen macroeconomic stability.
Environmental and Social Concerns: Rampant illegal mining (“galamsey”) has caused severe environmental damage, with over 60% of water bodies affected. The reform is also a response to public pressure for tighter regulation and was a key campaign issue in the last election.

How the New System Works: The Role of GoldBod

GoldBod, the newly established Ghana Gold Board, is now the sole legal entity authorised to:

Buy, sell, assay, and export all gold produced by artisanal and small-scale miners.
Issue new licences for gold trading and export (applications open from 22 April 2025).
Set official gold prices in line with the Bank of Ghana's reference rate.

Enforce compliance, with criminal penalties for unauthorised trading.

The government has allocated $279 million to GoldBod to purchase and export at least three tonnes of gold weekly, aiming to build reserves and further stabilise the economy. This centralisation effort is also expected to support Ghana's ambitions to add value locally through refining, as discussed in Ghana's Gold Refinery: A New Era or Just Another Illusion?.

Implications for Foreign Investors and Local Traders

Foreigners: Must exit the local market by the deadline but can apply to buy gold directly from GoldBod. Previous licences are void.

Local Traders: All previous licences are revoked. Ghanaians and fully Ghanaian-owned companies must reapply for new GoldBod licences to continue trading.
Artisanal Miners: Must sell their gold exclusively to GoldBod, which is expected to improve transparency and pricing but may also disrupt established supply chains.

Industry groups have expressed cautious support, though some worry the government may struggle to purchase all available gold and that the exclusion of foreign partners could limit investment and expertise. This concern ties into Ghana's broader efforts to achieve international standards, such as the PMMC's bold leap towards LBMA certification, which is critical for global market access.

Addressing Smuggling and Illegal Mining

While GoldBod is not specifically tasked with fighting illegal mining, the new system is expected to make it harder for illicit operators to sell gold domestically. The government hopes this will reduce environmental harm and increase legal gold flows, though enforcement will be key. For a detailed analysis of these challenges, see Addressing Ghana's Gold Smuggling Challenges and recent reports on the impact of smuggling on Ghana's economy.

Frequently Asked Questions

Can foreigners still buy Ghanaian gold?

Yes, but only directly from GoldBod after applying for permission. They can no longer participate in the local trading market or buy directly from small-scale miners.

What happens to existing gold trading licences?

All previous licences, both local and foreign, are now invalid. New applications must be made to GoldBod from 22 April 2025.

How will this affect gold prices and exports?

Centralising gold sales is expected to improve state revenue and transparency, but the impact on prices will depend on GoldBod's efficiency and market conditions. Ghana's gold exports are likely to remain strong, especially with global prices at record highs.