Ghana bans foreigners from local gold trading in major overhaul

ACCRA - Ghana on Monday announced it was banning all foreigners from trading in its local gold market as part of sweeping reforms aimed at boosting foreign exchange reserves and stabilising the local currency.

The ban takes effect on 1 May and grants exclusive authority to a new state body, the Ghana Gold Board (GoldBod), to regulate and control artisanal and small-scale gold mining in a country where illegal mining has become a major issue.

"All foreigners are hereby notified to exit the local gold trading market not later than 30th April, 2025," said GoldBod spokesperson Prince Kwame Minkah in a statement.

Foreigners may however "apply to the GoldBod to buy or off-take gold directly from the GoldBod," he added.

Many Chinese nationals have been active in Ghana's informal mining and trading ecosystem, and along with Ghanaian nationals have been repeatedly accused of illegal activities including unauthorised gold exports and environmental degradation.

Ghana, the largest gold producer in Africa, derives more than a third of its gold output from small-scale miners. Industry experts believe the move could transform the country's multibillion-dollar artisanal and small-scale (ASM) mining sector.

But illegal informal mining, known locally as galamsey, has been a dominant and emotive issue in Ghana's political campaigns, with successive governments vowing to tackle the environmental destruction and loss of revenue it causes.

The establishment of GoldBod and the ban on foreign participation in gold trading is widely seen as the first concrete step by the new administration of President John Mahama to assert control over the sector and deliver on its anti-galamsey campaign promises.

The sector provides livelihoods for over one million people but has long been a source of concern for authorities due to smuggling, unsafe practices, and illicit foreign involvement - particularly by Chinese nationals.

"This is one of the most decisive steps taken by the Ghanaian government in recent years to regain control over the (small-scale) gold value chain," Nana Asante Krobea, a mining governance consultant, told AFP.

"It sends a strong message to foreign actors - especially Chinese operatives - who have circumvented local laws for years."

If properly applied the new law could bolster government revenue and "bring some order to the chaos in the gold sector", he added.