Ghana's Finance Minister, Dr. Cassiel Ato Forson, has announced a comprehensive plan to eliminate illegal gold smuggling in the country, which is estimated to have lost approximately 60 tonnes of gold worth $1.2 billion through illicit channels during the economic crisis in 2022.

The government's determination to tackle this issue is driven by the significant impact it has on the country's economy. Dr. Forson emphasized that if the smuggled gold had remained in the economy, it would have had a substantial positive effect. To address this, the government is establishing the Ghana Gold Board (GoldBod), a regulatory authority tasked with overseeing the gold sector, curbing illegal trade, and promoting responsible mining practices.

The Ghana Gold Board will work closely with the Economic and Organised Crime Office (EOCO) to enhance security at major smuggling hotspots, such as Bole. Additionally, GoldBod will collaborate with the Precious Minerals Marketing Company (PMMC) to improve pricing systems, introduce pre-financing mechanisms for gold traders, and encourage whistleblower participation in uncovering smuggling operations. To ensure responsible sourcing, GoldBod will align its operations with the London Bullion Market Association (LBMA) certification standards.

In a significant policy shift, the government has also announced the removal of the 1.5% withholding tax on unprocessed gold in the 2025 Budget. This move is designed to incentivize legal gold trade, increase state revenue, and diminish the motivation for smuggling. Dr. Forson assured the public that these reforms will enable Ghana to regain control over its gold industry, dismantle illicit trade networks, and ensure the benefits of the sector reach the citizens.

The government's commitment to reforming the gold sector is further underscored by its pledge to provide financial support for GoldBod to procure three tonnes of gold per week. This move is expected to bolster Ghana's gold reserves and foreign exchange earnings, thereby strengthening economic stability. The establishment of the Ghana Gold Board and the removal of the withholding tax on unprocessed gold are significant steps towards creating a more transparent and lucrative gold sector in Ghana.

The implications of these reforms are far-reaching, with the potential to not only recover lost gold revenue but also to fortify the economy and cultivate a more transparent and lucrative gold sector. As Dr. Forson concluded, "These efforts will put Ghana back in control of its gold industry, disrupt illegal networks, and ensure that our gold works for Ghanaians. This is just the beginning—together, we will build a stronger, more prosperous Ghana!"

The Ghanaian government's decisive action to combat illegal gold smuggling and establish the Ghana Gold Board marks a significant shift towards a more regulated and responsible gold sector. As the country moves forward with these reforms, it will be important to monitor their effectiveness in reducing illegal smuggling and promoting sustainable gold mining practices.