Former Deputy Minister for Works and Housing and former MP for Kwesimintsim, Dr. Prince Hamid Armah, has criticised the Mahama-led government’s new directive mandating all foreign entities to exit Ghana’s local gold market by April 30, 2025.
The directive, issued by the newly established Ghana Gold Board (GoldBod), stipulates that effective May 1, 2025, only GoldBod will have the authority to buy, sell, assay, and export gold from small-scale miners. This effectively centralises the gold trade under a single state entity, rendering all previous export licences invalid. Foreign companies are required to re-register with GoldBod if they wish to continue operations.
Reacting to this directive in a social media post, Dr. Armah labelled the move as recolonization, arguing that it undermines Ghana’s liberal economic principles.
“This is not policy. It is a state monopoly in disguise. And it flies in the face of everything our Constitution and trade framework stand for: a liberal economy, free private enterprise, and investor confidence. Since when did we become a command economy?” he quizzed.
He stressed that while COCOBOD works collaboratively with private Licensed Buying Companies to stabilise farmer incomes, GoldBod’s approach seeks to centralise control and criminalise independent market participation.
“Some may point to COCOBOD as precedent but let us be clear. Cocoa and gold are not the same. COCOBOD exists to stabilise farmer incomes, not to criminalise market participation. It works with private Licensed Buying Companies, not against them. COCOBOD does not eliminate players from the value chain. It regulates and empowers them. GoldBod, on the other hand, seeks to centralise buying, selling, licensing, and export under one roof and threatens jail time for anyone who trades outside its control.”
“As someone trained in economic policy and governance, I know that is not regulation. That is state capture of a commodity market. Centralising the buying, selling, assaying, and exporting of gold under a single state entity undermines competition, deters foreign capital, and places dangerous discretion in the hands of political appointees. It echoes the very mistakes that collapsed cocoa licensing in the 1970s and sent capital fleeing.”
The government, however, maintains that the establishment of GoldBod aims to increase revenue from artisanal and small-scale mining, curb illegal smuggling, and stabilise the national currency. Finance Minister Cassiel Ato Forson earlier stated that the move is part of a broader strategy to formalise the gold sector and enhance regulatory oversight.
Source: Ghana/StarrFM 103.5FM/Vanessa Tutuwaa Danso
