Foreigners ordered the exit from the local trading market to enhance revenues

Ghana prevented all foreigners from trading in the local gold market as part of the efforts made to increase national revenues and simplify the mining sector in the country.

The enactment of a new law arises earlier this month that gives the exclusive authority to mining gold to a new state body, the Goldbod Council.

“All foreigners are informed by this exit from the local gold trading market no later than April 30, 2025,” Goldbod spokesman Prince Kwami Menkah said in a statement.

Ghana is the largest producer of gold in Africa and the sixth sixth in the world, but it is struggling to treat illegal mining on a large scale, which is locally called “Galamsey”.

West Africa -rich in minerals face harsh economic times with a high cost of living. It is the second largest cocoa producer in the world but he only sees a little profit from chocolate.

It feeds on the high price of gold and youth unemployment, the illegal gold mining was in Ghana, despite the military operations to close the activities of Galamsey. It was the issue of a major campaign in the period before the last December elections.

Chinese citizens were active in Ghana’s unofficial mining and the side of Ghanaian citizens, and they were repeatedly accused of ignoring environmental concerns.

Under the new law approved by Parliament last month and was agreed by President John Mahama on April 2, Goldbod is the buyer, seller and source of all gold that results in the craftsman and small mining sector (ASM).

However, foreigners are allowed to apply to buy or stop gold directly from GoldBod but they can no longer work in the local golden value chain.

Local merchants’ licenses were also canceled, but they were given a period of grace to allow the smooth transition before the directive applied next month.

During this period, golden transactions will only be implemented in Ghana Sidis, the local currency, and its price based on the prices of Ghana Bank.

Goldbod warned that “a crime should be punishable by a person to buy or deal with gold in the country without a license issued by the new council.

The government allocated $ 279 million (212 pounds) to the new body to buy and export at least three tons of gold per week.

Finance Minister Cassel Ato Forson said this step aims to help increase foreign exchange flows and achieve stability in the local currency.

But Kwaku Effah Asuahene, head of the Ghana alloys dealers, is afraid that the government may not be able to collect sufficient revenues to buy all gold.

The BBC told that, despite their support for the initiative, they prefer to allow them to partner with foreign investors to buy and export gold through Goldbod.

Although Goldbod has not been created specifically to deal with illegal mining, the new guidance may make it difficult for illegal miners selling gold in the country.

Ghana deals with extreme environmental pollution caused by illegal miners activities, and more than 60 % of the country’s water bodies have been affected.

The prohibition is seen as the first concrete step by the new administration of the President Mahama to tighten the regulations, control the gold sector, and connect the promises of its anti -government campaign.

“She sends a strong message to foreign actors – especially Chinese activists – who circumvent local laws for years,” Nana Asante Crubia, Mining Governance Adviser, told Agence France -Presse.

He said that if it is applied correctly, the new law may strengthen government revenues and “provide some orders to chaos in the gold sector.”

Ghana Gold exports grew by 53.2 % to $ 11.64 billion last year – approximately $ 5 billion, of which were legal miners on a small scale.

Gold prices rose to $ 3,200 an ounce last week due to trade tensions between the United States and China, forcing investors to resort to the commodity due to uncertainty.