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Ghana banned all foreigners to trade their local gold as part of the efforts to increase national income and streamline the country’s mining.
This implies the adoption of a new law earlier this month, which provides exclusive powers for the production of gold of the new state body, the Gana Golden Council (Goldbod).
“All foreigners report to leave the local market of gold not later than April 30, 2025,” Goldbod Press Socialist Prince Kwam said in a statement.
Ghana is the largest manufacturer of gold in Africa and the sixth largest in the world, but it is struggling to solve the wide illegal production of gold called “Galams”.
Rich with mineral Western African countries is confronted with the rigid economic “Mi with a high cost of life. This is the second largest cocoa manufacturer, but little sees the income from chocolate.
Ghana’s rise in gold and youth unemployment increases, illegal production of gold is growing in Ghana, despite the hostilities to stop Galams. This was a big question of a campaign leading to the December elections.
Chinese citizens actively act in Ghana’s informal mining and together with Ghana’s citizens, they were repeatedly accused of ignoring environmental problems.
According to the new law passed by Parliament last month and agreed to President John Maham on April 2, Goldbod is the only buyer, seller and exporter of all gold made in the artisanal and small mining sector (ASM).
However, foreigners may apply for or without receiving gold directly with Goldbod, but can no longer work in the local valuable chain.
Local dealers’ licenses were also recalled, but given the grand period to allow an unobstructed transition before the directive came into force next month.
During this period, gold operations will be carried out only in Ghana -Sedi, local currency and at the price of the Gamma Bank.
Goldbod warned that “he is a punished offense for a person who can purchase or engage in gold in a country without a new council’s license.
The government has allocated $ 279 million (212 pounds) to a new body for the purchase and export of at least three tons of gold per week.
The move is designed to increase the flow of currency and stabilize local currency, said Finance Minister Cassel Atonson.
But Kraku Ephi said, Chairman of the House of Handmakers, fears that the government may not receive enough revenue to buy all gold.
He told the BBC that when they support the initiative, they preferred to allow him to cooperate with foreign investors to buy gold and export it through Goldbod.
Despite the fact that Goldbod was not created to fight illegal mining specifically, the new directive may also complicate illegal miners to sell gold in the country.
Ghana is engaged in serious pollution caused by the activities of illegal miners, and more than 60% of the country’s reservoirs were affected.
The ban is regarded as the first specific step of the new Presidential Administration Maham to strengthen the regulation and control over the golden sector and fulfill their promises against Galams.
“He sends a strong message to foreign actors – especially Chinese operatives – who have been around for local laws,” said the Nana Asante Krobea AFP.
He said that with the right use, a new law could increase the profit from the government and “bring some order to the chaos in the golden sector.”
Last year, exports of Ghana’s gold increased by 53.2% to $ 11.64 billion – almost $ 5 billion, which was from legal small miners.
Gold prices amounted to up to $ 3,200 per ounce from the trade tensions between the US and China last week, which made investors seek asylum in goods because of uncertainty.
