Ghana on Wednesday unveiled sweeping reforms aimed at channeling around 127 metric tons of artisanal and small-scale mining (ASM) gold into official markets each year, in a bid to boost foreign exchange earnings and curb rampant smuggling.
Finance Minister Cassiel Ato Forson told Parliament that the newly strengthened Ghana Gold Board (GoldBod) will be tasked with purchasing a minimum of 2.45 tons of ASM gold weekly, consolidating it into a formal supply pipeline projected to generate more than US$20 billion in annual inflows.
Ghana, Africa’s largest gold producer, has lost an estimated us$11.4 billion to undeclared ASM gold smuggled abroad over the 2019–2023 period, according to the Swiss non-profit Swissaid. Much of the illicit metal is funneled through regional borders to international hubs such as Dubai.
The reforms follow a surge in ASM output, boosted by high gold prices and the establishment of GoldBod in 2025, which helped Ghana achieve national production of roughly 186 tons last year. From next month, GoldBod will take full responsibility for negotiating off-take agreements and selling all procured ASM gold, managing price risks with derivatives and hedging tools.
“To disincentivize smuggling, GoldBod may use price incentives through spot market purchases and bonuses for licensed miners,” Forson said, adding that all foreign exchange from the program will be sold exclusively to the Bank of Ghana at a pre-agreed rate.
The initiative also includes environmental safeguards, traceability systems, expanded local refining capacity, and fiscal reforms designed to lower ASM operating costs. GoldBod will raise financing to hold three to four weeks’ worth of purchases, ensuring liquidity and continuity in the formal supply chain.
Industry observers note the challenge ahead, as Ghana continues to reconcile incentives for ASM miners with measures to attract large-scale investors, who have expressed concerns that stricter financial and operational oversight could slow output.
“Formalizing artisanal gold production is critical not only to safeguard government revenue but also to stabilize local markets and protect miners’ livelihoods,” said mining analyst Nana Owusu. “The key will be ensuring timely payments, competitive pricing, and effective enforcement of the new rules.”
Ghana’s reforms come as other African countries confront similar challenges, with ASM contributing significantly to gold production but also generating substantial revenue losses through smuggling. Analysts say Ghana’s coordinated approach, combining market incentives, central oversight, and legal enforcement, could become a model for regional efforts to integrate artisanal mining into formal economies.
The government plans to monitor ASM compliance closely, with GoldBod leveraging digital traceability tools and partnerships with licensed refiners to ensure all gold entering the pipeline meets regulatory standards.
By centralizing procurement and sales, Ghana hopes to protect miners from volatile prices, provide predictable revenues, and channel precious metals directly into national development objectives, strengthening both fiscal stability and the broader mining sector.
