Ghana has taken bold and strategic steps to control its gold trading and marketing space necessitating in the enactment of Ghana Gold Board Act, 2025 (Act 1140). The Ghana Gold Board (GoldBod) is the sole authority with the exclusive right to buy, sell, weigh, grade, assay, value and export gold and other precious minerals in Ghana.
The preamble to the Act assented to on the 2nd day of April 2025 succinctly captures the rationale for the enactment of the legislation.
"an Act to establish the Ghana Gold Board to oversee, monitor, and undertake the buying, selling and export of gold and other precious minerals, promote value addition to the gold and other precious minerals of the country, support responsible mining and the accumulation of gold reserves by the Bank of Ghana, generate foreign exchange and provide for related matters".
Despite the preamble referred to above, Section 3(2) of Act 1140 vest Gold Board with the sole mandate to undertake the following:
- Grade, assay, weigh and value gold produced in, brought into or exported from the country;
- Purchase and sell gold produced by miners other than large-scale miners; and
- Export gold produced by a mining company other than a large-scale mining company from the country.
Thus, the Gold Board Act repeals the previous regime that allow legal entities, including those whose shares were held by foreigners to engage in the trading and marketing of precious metals in Ghana, including gold dore bars.
Therefore, by design and the enactment of Act 1140, GoldBod is vested with the sole authority to trade and market gold in Ghana. Individuals seeking to engage in the business of trading and marketing shall be required to procure a license from the GoldBod.
It must be emphasised that the gold trading and marketing enterprise has been a highly regulated industry since immemorial and for that matter the position has received the blessing of the Gold Board Act.
As a result, any attempt by an individual to trade in gold without a license from the GoldBod is a punishable offence under the Act. Section 26(5) of the Act establishes the offence incidental to trading without a license. It states, "a person who engages in a business or other related activity under this section or regulations made under the Act without a license commits an offence and is liable on summary conviction to a fine of not less than fifty thousand penalty units and not more than two hundred thousand penalty units or a term of imprisonment of not less than five years and not more than ten years or both."
The punitive sanctions reinforce the authority of the GoldBod as the sole regulator, trader, and marketer of gold dore bars in Ghana.
REMARKABLE CHANGES BY THE GOLD BOARD ACT, 2025 (ACT 1140)
1. From PMMC to GoldBod
Precious Minerals Marketing Company (PMMC) Ltd was established in 1963 as Ghana Diamond Marketing Board charged with the sole responsibility for the purchase and marketing of Ghana's diamonds. In 1965, by Legislative Instrument (LI) 401, the Company was incorporated as a State-Owned Enterprise (SOE). With the promulgation of the Diamonds Decree (NRCD 32) in 1972, the Legislative Instrument (L.I 916) was enacted to change the company's name to Diamond Marketing Corporation.
However, in 1989, Precious Mineral Marketing Corporation Law (PNDC Law 219) was enacted to yet again change the Company's name to the Precious Minerals Marketing Corporation with the following functions
- To grade, assay, value, and process precious minerals
- To buy and sell precious minerals
- To perform any functions conferred upon it by the Diamond Decree, 1972 (N.R.C.D. 32)
- To appoint licensed buying agents for the purchase of precious minerals produced by small scale-miners
- To promote the development of precious minerals and jewellery industry in Ghana
- To do all such things as are incidental or conducive to the attainment of its objectives and functions.
Finally, in the year 2000, it was converted by Statutory Corporations Conversion to Companies Act, 1993 (Act 461) to a Limited Liability Company to operate under the Companies Act, 1963 (Act 179) as Precious Minerals Marketing Company Limited with the same functions under the PNDC Law 219.
The following have been the functions of the Company until 2016 when most of the functions changed as a result of the appointment of PMMC as the government assayer.
- Grading, assaying, valuing, and processing of precious minerals.
- Buying and selling precious minerals
- Appointment of licensed buyers for the purchase of precious minerals produced by small scale miners.
- Production of jewellery
- To carry on trade and business whatsoever, which can, in the opinion of the directors, be profitable ancillary for the general business of the Company.
To strengthen industry regulation and optimise national benefits, the Ghana Gold Board was established on 2 April 2025 to restructure and streamline the precious mineral trading sector of Ghana.
The GoldBod initiative is the product of extensive stakeholder consultations and aims to maximise foreign exchange inflows, gold reserve accumulation, and value addition for sustainable growth and transformation.
2. Cancellation of Existing Licenses
The Gold Board Act repeals the existing legislative regime/framework for licensing under the Minerals and Mining Act, 2006 (Act 703) as amended and the Minerals and Mining (General) Regulations, 2012 (L.I. 2173).
Therefore, all licensing previously issued by the Minerals Commission under the direct supervision and control of the Ministry of Mines and by extension the Sector Minister is hereby revoked. The GoldBod is the central authority vested with legislative and governance powers to regulate and supervise the licensing regime of gold trade in Ghana.
3. Foreign Traders out of the Local Market of Gold
The combined effect of Section 26, 27 and 28 of Act 1140 makes it imperative to underscore the exit of foreign traders from the local gold market. Section 26 establishes the requirement for license to undertake gold related transactions in Ghana including activities related to aggregation, buying, selling, assaying, smelting, and exportation among others.
Also, Section 27 of Act 1140 establishes the categories of licenses liable for an application under the Act. The various licenses include the following;
- An Aggregation Licence
- A Buying Licence
- An Export Partnership Licence
- A Refining Licence
- A Storage Licence
- An Importation Licence
- A Transshipment Licence
- A Transportation Licence
- A Smelting Licence
- A Fabrication Licence
Importantly, Section 28 of Act 1140 underscore the qualification for license for any of the category of licensing listed. It states that a person qualifies to apply for a license under Act 1140 if that person is
- A citizen of eighteen years or above; or
- A company, a partnership, an association or other body, whether incorporated or unincorporated, which is wholly owned by a citizen.
Effectively, foreign interest participation companies and foreigners in general are barred from procuring licensing to engage in an activity in Ghana's gold trading and marketing regime. The entire scope is reserved for Ghanaians, and Ghanaian incorporated entities only. No foreigner shall have the right to participate in the industry, either on his own or through a corporate vehicle.
LICENCE REGIME UNDER THE GOLD BOARD ACT
1. Requirement for License
Section 26 of Act 1140 establishes the requirement for a license by the Gold Board Act. Essentially, a person shall not engage in a business or a related entity in the gold trading and marketing industry unless that person has been granted a license by the Gold Board.
Additionally, a business or a related activity in the gold trading and marketing industry includes:
- Aggregation
- Buying
- Selling
- Assaying
- Smelting
- Exportation
- Importation
- Refining
- Processing
- Shipment
- Storage
- Transshipment
- Transportation; and
- Transit
Therefore, a company seeking to procure a trading and marketing license or any related business activity capable of being licensed under the Act must identify itself, and by extension its corporate objects with one of the activities enumerated under Section 26 of Act 1140.
Additionally, a person shall not engage in the fabrication of gold into castings, mints, jewellery, coins, bars, bullion or an industrial component or any form of value addition unless that person has been granted a license by the Gold Board.
Any person who engages in a business or other related activity under this Section or Regulations made under this Act without a license commits an offence and is liable on summary conviction to a fine of not less than Fifty Thousand penalty units and not more than Two Hundred Thousand penalty units or to a term of imprisonment of not less than five years and not more than ten years or both.
2. Categories of Licenses
Section 27 of Act 1140 establishes the categories of licenses to which a person may apply for to engage in a business or related activity in the gold trading and marketing industry. The following licenses are established under the Act.
- An Aggregation Licence
- A Buying Licence
- A Refining Licence
- An Export Partnership Licence
- A Storage Licence
- An Importation Licence
- A Transshipment Licence
- A Transportation Licence
- A Smelting Licence
- A Fabrication Licence
3. Qualification for License
Section 28 of Act 1140 establishes the qualifications for license under the Gold Board Act. It states that a person qualifies for a license under the Act if that person is
- A citizen of eighteen years or above; or
- A company, a partnership, an association or other body, whether incorporated or unincorporated, which is wholly owned by a citizen.
- Time for Considering an Application for a License
Section 30 of Act 1140 states that within ten days of receipt of an application, the Gold Board shall consider the application. The use of shall makes it obligatory to Gold Board to consider the application within ten days on receipt.
4. Grant/ Refusal of a License
Section 31 of Act 1140 establishes the grant and or refusal of a license. In part, it states that where the Gold Board is satisfied that an applicant has met the requirements for a grant of a license, the Gold Board shall,
5. Approve the application and issue the applicant with a license in the prescribed form; and within sixty days, the Gold Board shall communicate the decision in writing to the applicant.
The Gold Board may however refuse an application on any of the following grounds;
- It is against the public interest, public safety or public security.
- The applicant fails to comply with a directive of the Gold Board. or
- The Gold Board shall communicate the reason for the refusal of an application to the applicant.
6. Non-Transferability of License
A license granted under Act 1140 is non-transferable except with prior written approval of the Gold Board. A person who transfers a license without the prior approval of the Gold Board commits an offence and is liable on summary conviction to a fine of not less than fifty thousand penalty units and not more than two hundred thousand penalty units or to a term of imprisonment of not less than five years and not more than ten years or both and in addition, the Gold Board shall revoke the license of that person.
7. Hoarding of Gold
The law prohibits the hoarding of gold by individuals. In definitive terms, it states that a person shall not hoard gold. However, hoarding does not apply to a person in possession of gold for personal or value storage purposes.
A person who contravenes that provision commits an offence and is liable on summary conviction to a fine of not less than two hundred thousand penalty units and not more than five hundred thousand penalty units or to a term of imprisonment of not less than five years and not more than ten years or to both.
8. Recommendations
The Ghana Gold Board Act, 2025 (Act 1140), under Section 73, empowers the Minister of Finance, in consultation with the Minister of Mines, to enact regulations via legislative instrument to govern critical aspects of the gold trading and marketing industry. These include regulating the licensing process for businesses, setting performance standards for gold-related services, and establishing health and safety protocols, among other provisions. To ensure the effective operationalization of the Act and to provide clarity and confidence to investors, policymakers, and industry stakeholders, we strongly recommend the urgent enactment of these regulations within the shortest possible timeframe. Below are key recommendations for policymakers to prioritize:
- Expedite the Licensing Framework: The regulations must clearly define the licensing process for gold trading and marketing, outlining eligibility criteria, application procedures, timelines, and compliance requirements. Given that the Act restricts local trading to Ghanaian companies and citizens, a transparent and efficient licensing framework is critical to attract and guide investors.
- Set Robust Performance Standards: Regulations should establish clear, measurable standards for gold-related services, including quality control, ethical sourcing, and anti-smuggling measures. These standards will ensure that GoldBod's oversight enhances transparency and competitiveness in the industry. Policymakers must consult with industry experts to craft standards that align with global best practices, fostering investor trust and positioning Ghana as a leader in responsible gold trading.
- Future considerations: We recommend that the definition of hoarding should be extended to include storage and the use of gold for tradition and chieftaincy-related matters. This is a proactive step in preserving the long-held tradition of using gold and other ornaments in traditional settings in Ghana. Huge consideration must be given to the above to avoid conflicts.
Conclusion
The establishment of the Ghana Gold Board (GoldBod) through the Ghana Gold Board Act, 2025 (Act 1140) marks a pivotal shift in Ghana's gold trading and marketing landscape. By replacing the Precious Minerals Marketing Company (PMMC) and introducing a robust licensing regime, GoldBod asserts an unprecedented control over Ghana's gold industry, prioritizing Ghanaian companies and citizens while barring foreign nationals from local gold trading and marketing.
The bold move by Ghana is intended to curb smuggling, enhance trading and export transparency and bolster national revenue through increase in foreign exchange and gold reserves.
Investors and traders now face a structured policy environment on gold trading, where compliance with the Act unlocks access to Africa's largest gold markets.
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