The Ghanaian government has announced a scheme to buy 127 tonnes of gold from “artisanal” and small-scale mining (ASM) every year in an effort to stem smuggling.
Ghana ranks as Africa's top gold producer and the world's sixth largest. In 2024, the country produced around 4.9 million ounces of the yellow metal.
Artisanal miners are small-scale operations generally run by individuals, families, or small groups using simple tools and minimal mechanization.
While the output from ASM pales in comparison to large mining operations, these small operators produce a significant amount of gold. Analysts estimate that ASM accounts for roughly 20 percent of annual global gold production. Artisanal and small-scale mines produce a little over half of Ghana’s annual gold production.
Because ASMs are small operations that often operate outside regulatory frameworks, smuggling is rampant. ASM gold often leaks through borders, finding its way to global hubs such as Dubai.
Governments don’t like gold smuggling, for obvious reasons. They lose out on customs duties and other taxes. An independent Swiss firm estimated that the Ghanaian government lost around $11.4 billion through smuggling between 2019 and 2023. They based the number on a 229-metric-ton gap between official export and import data.
Under the new government policy, the Ghana Gold Board (GoldBod) will purchase a minimum of 2.45 tonnes of ASM gold every week. According to Reuters, the government board will “consolidate purchases into a formal pipeline targeting more than $20 billion of annual inflows.”
GoldBod was created last year to centralize the purchase and export of gold mined by small-scale producers. The organization is credited with helping the country increase gold production by about 186 tonnes in 2025.
Ghana Minister of Finance Cassiel Ato Forson said that under the new rules, GoldBod will negotiate offtake agreements and sell the gold it procures through official channels. The board will also be authorized to raise financing to hold three to four weeks of gold supply and deploy derivative and hedging tools to manage risk.
“To disincentivize smuggling, GoldBod may employ price incentives through spot world market price purchases and bonuses for licensed miners,” Forson said.
The board will be required to sell any foreign exchange proceeds to the country’s central bank at a predetermined rate. According to Business Insider Africa, “This mechanism is meant to ensure that the earnings from small-scale gold exports directly contribute to Ghana's reserves and currency stability.”
The new scheme will also include tighter environmental regulation, tracking mechanisms to trace gold from the mine to export, increased local refining capacity, and initiatives to lower operating costs for licensed miners.
According to Business Insider Africa, the ultimate goal is “to transform a formerly fragmented and partially criminal sector into a predictable and transparent revenue source.”
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