Ghana has announced a sweeping ban on all foreign participation in its local gold trading market, a move aimed at maximizing national revenue and tightening regulation of the mining sector.
This decision comes with the rollout of a new law establishing the Ghana Gold Board (GoldBod) as the sole authority overseeing gold purchases, sales, and exports from the artisanal and small-scale mining (ASM) sector.
Foreigners Ordered to Exit by April 30, 2025
In a bold statement issued by GoldBod spokesperson Prince Kwame Minkah, all foreign nationals currently operating in Ghana’s gold trading scene were given a final deadline:
“All foreigners are hereby notified to exit the local gold trading market not later than 30th April, 2025,” Minkah announced.
The ban follows the enactment of the Ghana Gold Board Act, which transfers all gold trade authority to GoldBod. While foreigners will no longer be allowed to participate directly in the local value chain, they may still apply to buy or off-take gold from the GoldBod under regulated conditions.
National Revenue and Currency Stability at Heart of Move
Ghana’s Finance Minister, Dr. Cassiel Ato Forson, explained that the government has allocated $279 million to GoldBod to purchase and export at least three tonnes of gold per week. The initiative, he noted, is designed to enhance foreign exchange inflows and stabilize the Ghanaian cedi.
“We’re taking control of our resources to ensure the people of Ghana benefit first,” Forson said.
With gold prices surging to $3,200 per ounce, the stakes are high for Ghana, Africa’s largest gold producer and sixth globally.
Local Traders Raise Concerns Over Government Monopoly
While many applaud the intent behind the reform, others worry about its implementation and long-term sustainability.
“The idea is good in principle, but we fear the government may not be able to raise enough money to buy all the gold,” said Kwaku Effah Asuahene a traders.
“We would’ve preferred a hybrid model where local dealers could partner with foreign investors and still operate under the oversight of GoldBod.”
Local gold dealers have had their licenses revoked but were given a brief grace period for a smooth transition. During this period, all gold transactions must be carried out in Ghana cedis and priced based on the Bank of Ghana’s rates.
Galamsey Crackdown: A Hidden Objective?
Though not directly aimed at illegal mining—locally called “galamsey” the ban may indirectly limit the avenues for illegal gold trade. Galamsey has been a major contributor to environmental degradation in Ghana, with over 60% of water bodies affected.
“If this law is strictly enforced, it could choke off the black-market trade that’s been thriving for years,” said Nana Asante Krobea, a mining governance consultant.
“It sends a strong message, especially to foreign actors who’ve long circumvented local laws.”
Chinese nationals, often accused of flouting environmental laws, are likely to be among those most affected by the new directive.
Political Timing and Economic Pressures
The move comes amidst high cost of living and economic strain in Ghana. With youth unemployment and public frustration rising, illegal mining became a hot-button issue during last December’s election. President John Mahama, who signed the new law on April 2, campaigned on promises to clamp down on galamsey and restore order in the gold sector.
“This is not just economic reform; it’s political,” said Dr. Afua Mensima, a political economist at the University of Ghana.
“Whether it succeeds or backfires will depend on how effectively GoldBod can manage what has always been a chaotic sector.”
Outlook: Promise or Pitfall?
While the new GoldBod model has the potential to significantly increase Ghana’s share in its gold wealth, critics warn of possible bureaucracy, corruption, and inefficiencies. Still, many agree that reform was long overdue.
“For the first time, we’re putting Ghana first in the gold conversation,” said Akwasi Appiah, a local gold trader in Tarkwa.
Excerpt from related story: Ghana Gold Blockchain Breakthrough
In April 2025, Spectrum Daily reported that Ghana exported 11.62 grams of gold from the Obeng Mine, fully traced on blockchain—a first for the nation.
The project, a partnership between the Ghanaian government, UK-based tech firm Minexx, and civil society group Solidaridad, aims to curb illegal gold exports and promote ethical sourcing.
Through this blockchain initiative, institutions like the Bank of Ghana now have real-time access to gold export data, improving transparency and accountability.
Experts say the move positions Ghana as a model for responsible mining in Africa and could significantly boost investor confidence and local economic growth.
