Ghana and UK intensify efforts to combat illegal gold trade

Finance Minister Dr. Cassiel Ato Forson met with UK-Ghana Gold Programme officials on Monday. They discussed ways to reduce gold smuggling in Ghana. The goal is to ensure the country benefits from its gold resources.

The UK-Ghana Gold Programme aims to break the link between illegal gold mining and organized crime. During the meeting, stakeholders highlighted the impact of illicit gold trade on Ghana’s economy. In 2022, 60 tonnes of gold worth about $1.2 billion were smuggled out of Ghana.

To tackle this issue, they discussed creating the Ghana Gold Board (GoldBod). This board will oversee gold trade, combat smuggling, and promote responsible sourcing. The UK/Ghana Gold Programme supports this initiative and collaborates with the Economic and Organised Crime Office (EOCO) to fight smuggling at key border points like Bole.

The meeting also covered ongoing partnerships with the Precious Minerals Marketing Company (PMMC). They are focusing on industry reforms such as gold pricing mechanisms and pre-financing options. Other topics included whistleblower protection for reporting smuggling and ensuring responsible sourcing aligned with London Bullion Market Association (LBMA) certification.

In a significant move, the government plans to fund GoldBod to buy 3 tonnes of gold weekly. This strategy aims to boost foreign exchange reserves. Additionally, in the 2025 Budget, the government will abolish the 1.5% withholding tax on unprocessed gold. This policy shift is expected to encourage formal gold trade and reduce smuggling.

Dr. Forson emphasized that these measures will help Ghana regain control over its gold industry. They aim to disrupt illegal trade networks and maximize benefits from natural resources. The collaboration between Ghana and the UK represents a crucial step toward ending gold smuggling and promoting a transparent, profitable gold sector.