• Ghana bans all foreigners from trading in its local gold market starting May 1, 2025.
• The newly formed Ghana Gold Board (GoldBod) will regulate and control all gold trading and exports.
• The move aims to combat illegal mining and enhance government revenue from the gold sector.
• Foreigners may apply directly to GoldBod for the purchase of gold.
• Approximately 60% of Ghana's water bodies are affected by illegal mining activities.

In a significant reform, Ghana has announced a ban on all foreigners from participating in its local gold trading market, effective May 1, 2025. This decision, aimed at improving national revenue and stabilizing the economy, will authorize the newly created Ghana Gold Board (GoldBod) as the sole entity to regulate artisanal and small-scale gold mining activities in the country, which is the largest gold producer in Africa, according to SCMP.

The spokesperson for GoldBod, Prince Kwame Minkah, stated that "all foreigners are hereby notified to exit the local gold trading market not later than April 30, 2025." The new regulations provide that foreigners can apply directly to GoldBod to buy or off-take gold but cannot trade within the local market, reinforcing efforts to curb illegal mining activities, reports Reuters.

This initiative emerges in response to widespread illegal gold mining, known locally as "galamsey," which has significantly threatened the local environment and economy. The government has identified illegal mining as a pressing issue in political campaigns and public discourse, especially during the last presidential elections. Nana Asante Krobea, a mining governance consultant, noted that the ban sends a "strong message to foreign actors," particularly Chinese nationals who have been implicated in various illegal activities, according to BBC.

The new law is expected to not only enhance security in the gold sector but also potentially increase government revenue. With Ghana's gold exports reportedly growing by 53.2% in 2024 to $11.64 billion, nearly $5 billion of which came from legal small-scale miners, there is optimism that these reforms could reshape the market positively. Finance Minister Cassiel Ato Forson emphasized that the GoldBod initiative will enable Ghana to fully capitalize on the gold value chain and improve foreign exchange reserves, as detailed by Africa News.

The establishment of GoldBod, with an allocated budget of $279 million, reflects a commitment to tackle the challenges posed by illegal mining, which has resulted in over 60% of Ghana's water bodies being polluted, marking a significant step in the government's efforts to restore order to the gold sector. Experts believe that, if effectively enforced, these measures may lead to a more sustainable and profitable gold industry, according to SCMP.