Ghanaian Stakeholders Support Establishment of Ghana Gold Board (GOLDBOD)

Stakeholders in Ghana’s gold trading sector have endorsed the establishment of the Ghana Gold Board (GOLDBOD), viewing it as a potential game changer for the industry. They highlighted the initiative’s capacity to improve foreign exchange earnings and stabilize the cedi while advocating for fair representation. Concerns about the need for transparency and the regulation of gold prices were also raised. The initiative aims to promote responsible mining and community support, despite challenges posed by smuggling issues.

Stakeholders in Ghana’s gold trading sector have expressed their support for the newly proposed Ghana Gold Board (GOLDBOD), viewing it as a transformative initiative that will bolster the industry and enhance the nation’s economy. During a forum organized by the Precious Minerals Marketing Company (PMMC) in Tarkwa, participants including gold buyers, jewellers, small-scale miners, and commercial firms conveyed their optimism for this initiative, citing potential improvements in foreign exchange earnings and stabilization of the cedi.

Despite their enthusiasm, stakeholders urged the government to ensure fair representation of various industry players on the governing board of GOLDBOD. They recommended including traditional leaders and academic figures to elevate transparency and accountability within the board’s operations. Participants stressed the need for a broad representation in decision-making processes related to the gold industry.

Godwin Nickleson Amarh, General Secretary of the Ghana National Association of Small-Scale Miners (GNASSM), reassured that pricing within the GOLDBOD framework would be equitable and competitive. He emphasized GNASSM’s commitment to ensuring that pricing aligns with standards set by the London Bullion Market Association, thereby protecting the interests of small-scale miners involved in the initiatives of GOLDBOD.

Jonathan Ababio from the Jewellers Association commended aspects of the draft legislation that would facilitate local retention of a percentage of gold sales, enabling the country to develop machinery for enhanced value addition. He underscored the necessity for innovation to improve access to international markets.

Licensed gold buyer Alhaji Dauda welcomed the allocation of US$279 million as a revolving fund for gold purchases. He appealed for timely release and access to these funds to avoid operational difficulties arising from liquidity issues that may hamper the trading sector’s efficacy.

Mr. Kwaku Effah Esuahene of the Chamber of Bullion Traders Association underscored the importance of GOLDBOD in accurately tracking foreign exchange earnings from gold exports and called for collaborative efforts to mitigate gold smuggling, which has adversely affected government revenue.

Samuel Gyamfi, Managing Director of PMMC, reiterated that the GOLDBOD initiative is designed to benefit all stakeholders in the gold industry, promising support for miners and mining communities through various social responsibility measures. He provided insights into the draft GOLDBOD Bill and its objectives to curb illegal gold smuggling activities, thus ensuring a properly regulated gold trade.

Data from the Bank of Ghana indicates that gold exports reached US$11.64 billion in 2024, showing significant growth from the previous year. However, it was noted that nearly double this amount was presumed to be smuggled out of the country.

The forum served as an educational platform aimed at outlining the objectives and functionality of the forthcoming Ghana Gold Board and securing the necessary support from stakeholders for its successful implementation.

In conclusion, the establishment of the Ghana Gold Board represents a significant advancement for the gold trading sector in Ghana, with stakeholders expressing hope for economic enhancement through fair governance, transparent practices, and improved value addition. While there is enthusiasm, calls for equitable representation on the governing board and collaboration to address issues like gold smuggling underscore the complexities involved in achieving the initiative’s objectives effectively.

Original Source: www.graphic.com.gh