“For too long, the lack of support and formalization for small-scale miners has been a major hindrance to their success. The GoldBod Act changes this dynamic, providing us with the tools and resources we need to thrive within the legal framework, reducing the incentive to resort to illicit means,” says Godwin Armah, the General Secretary of the Ghana National Association of Small-Scale Miners.

One of the GoldBod’s key priorities is to address the longstanding challenge of small-scale miners’ limited access to financing. By establishing dedicated financing facilities, the regulatory body aims to enable these operators to invest in modern equipment and technology, enhancing their operational efficiency and productivity.

“The GoldBod’s focus on providing financial support to small-scale miners is a game-changer. This access to capital will empower them to upgrade their operations, allowing them to become more competitive and compliant with industry standards,” explains Akoliya Patel, Chairman of BGC International DMCC Ghana Ltd.

In addition to financial support, the GoldBod is also committed to empowering small-scale miners through comprehensive training programs. These initiatives will focus on imparting best practices in mining techniques, environmental management, and compliance with legal requirements, equipping miners with the necessary skills and knowledge to transition from informal to formal status.

“By investing in the training and capacity building of small-scale miners, the GoldBod is setting the stage for a more sustainable and responsible gold industry in Ghana. This approach will not only enhance the miners’ livelihoods but also contribute to the overall health and well-being of their communities,” says Dr. Anthony Mawuli Morkporkpor, a renowned US-based Ghanaian economist

Another critical component of the GoldBod’s strategy is to improve small-scale miners’ access to markets and ensure fair pricing for their gold. The regulatory body’s emphasis on transparency and accountability will enable these operators to receive better returns for their products, directly impacting their incomes and allowing them to invest in their families and communities.

“The GoldBod’s focus on fair pricing and market access is a game-changer for small-scale miners. By creating a more equitable system, the GoldBod will empower these operators to thrive and contribute to the broader economic prosperity of the country,” Dr.Morkporkpor opined.

Crucially, the GoldBod’s mandate also includes a strong emphasis on promoting sustainable mining practices among small-scale operators. By encouraging the adoption of eco-friendly techniques, the regulatory body aims to mitigate the environmental impact of mining activities, safeguarding the health of local communities and preserving Ghana’s natural resources.

 A community mining advocate hailing thepaasge of the GoldBod Act, notes that noted that for too long, the land and water resources have been exploited without regard for the environment, satying, “The GoldBod’s focus on sustainability gives us hope that the next generation will inherit a healthier and more prosperous Ghana.”

Recognizing the interconnectedness of small-scale miners’ success and community development, the GoldBod has also pledged to support initiatives that reinvest a portion of mining revenues into local infrastructure, health, and education. This holistic approach will create a more nurturing environment for miners and their families, fostering long-term prosperity and social well-being.

As the GoldBod takes effect, industry experts and government officials are confident that its transformative impact on small-scale miners will be a cornerstone of Ghana’s broader economic growth and sustainable development strategy. By addressing the systemic challenges that have long hindered the progress of this vital segment, the GoldBod is poised to unlock a new era of opportunity and shared prosperity.

“This is a landmark moment for small-scale miners in Ghana,” concludes Dr. Morkpokpor. “The GoldBod’s comprehensive approach will empower these operators, enabling them to thrive and contribute to the country’s economic transformation. The impact on livelihoods and community development will be truly transformative.”

Believe It Will Revolutionize the Gold Sector, Boost Economic Prosperity

In a historic move that has sent shockwaves through Ghana’s gold industry, the recently passed GoldBod Act is being hailed as a game-changer that will transform the sector and unlock unprecedented economic benefits for the nation.

The landmark legislation, which establishes the Ghana Gold Board (GoldBod) as a powerful regulatory body, has been met with overwhelming praise from industry experts, economic analysts, and government officials alike. Contrary to the Minority’s concerns, the GoldBod Act is widely seen as a comprehensive and strategic approach to addressing the longstanding challenges that have plagued Ghana’s gold sector, from illegal mining and smuggling to environmental degradation and inequitable distribution of benefits.

“This is a pivotal moment for Ghana’s economy. The GoldBod Act represents a quantum leap forward in our efforts to harness the full potential of our gold resources and channel their benefits towards sustainable development and shared prosperity,” says Dr. Anthony Mawuli Morkporkpor, a renowned US-based Ghanaian economist.

One of the key strengths of the GoldBod Act, experts argue, is its comprehensive approach to tackling the scourge of illegal mining, or “galamsey.” By empowering the regulatory body with the authority to issue licenses, enforce strict regulations, and impose hefty penalties on offenders, the legislation is expected to disrupt the networks and infrastructure that have long enabled illicit activities to thrive.

According to Dr. Morkporkpor, the GoldBod Act is a game-changer in the fight against illegal mining, stressing that the legislation is designed to do the exact opposite of what the Minority has claimed – it will dismantle the systems that have allowed galamsey to flourish, not promote or fund it.

The Act’s emphasis on enhancing transparency and traceability throughout the gold value chain is another critical component that has garnered widespread support. By establishing a centralized system for monitoring and accounting for every ounce of Ghanaian gold, the GoldBod is poised to significantly curtail the rampant smuggling of the precious metal across Ghana’s borders.

Dr. Morkporkpor explains that the GoldBod Act creates an environment that is profoundly hostile to the activities of illegal miners and smugglers. This legislation represents a comprehensive and strategic approach to securing our gold sector and protecting our national interests.”

But the GoldBod Act’s impact extends far beyond simply cracking down on illicit activities. The legislation also includes a robust framework for supporting and empowering small-scale, legitimate miners – a move that experts believe will be transformative for employment and livelihoods in the gold sector.

“For too long, the lack of support and formalization for small-scale miners has been a major driver of illegal mining activities. The GoldBod Act changes this dynamic by giving us the tools and resources we need to thrive within the legal framework, reducing the incentive to resort to illicit means,” notes Alhassan Abdul-Razak, Public Relations Officer for the Ghana National Association of Small-Scale Miners.

According Mr. Abdul-Razak, the GoldBod Act could lead to the creation of tens of thousands of new, sustainable jobs in the small-scale mining segment alone. He contends that this is in addition to the employment generated by the growth and modernization of large-scale mining operations, which are expected to benefit from the increased investment and improved regulatory environment.

For his part, Patel Akoliya, Chairman of BGC International DMCC Ghana Ltd. “The GoldBod Act will significantly improve the investment climate in Ghana’s gold sector. By providing a clear and robust regulatory framework, the legislation will give investors the confidence to commit their resources to the country, driving growth and innovation across the industry.”

Experts estimate that the GoldBod Act could help increase Ghana’s annual gold production by as much as 20-30% over the next five years, translating to a substantial boost in export revenue. According to the Ministry of Finance, this could potentially add 2-3 percentage points to the country’s GDP growth, a remarkable achievement that would solidify Ghana’s position as a leading African economy.

But the GoldBod Act’s impact extends beyond just the economic realm. The legislation’s emphasis on sustainable mining practices and environmental protection is expected to have a transformative impact on the country’s ecological landscape, mitigating the devastating effects of unregulated gold extraction.

“For too long, our land and water resources have been exploited without regard for the environment. The GoldBod Act’s focus on environmental protection and community engagement gives us hope that the next generation will inherit a healthier and more prosperous Ghana,” says Inusah Mustapha, a miner at Prestea.

As the GoldBod Act takes effect, industry experts and government officials are confident that it will usher in a new era of transparency, accountability, and sustainable development in Ghana’s gold sector. By addressing the systemic challenges that have long enabled illicit activities to flourish, the legislation promises to deliver tangible benefits to the country’s economy, environment, and the well-being of its citizens.

Dr. Morkporkpor concludes that “This is a landmark piece of legislation that will transform Ghana’s gold industry for the better, benefiting both the economy and the environment. The naysayers will be proven wrong, and the GoldBod Act will stand as a testament to the government’s unwavering commitment to responsible resource management and the rule of law.”

“This Act is a true game-changer for the gold industry in Ghana. For too long, we have faced an uphill battle, struggling with access to finance, technology, and a fair market. The GoldBod Act has finally given us the support and empowerment we need to thrive,” exclaims Stephen Akowia, a longtime small-scale miner in Tarkwa.

Mr. Akowia’s sentiments are echoed by Augustine Yaw Barimah, from Ayanfuri, a mining community in the Ashanti Region, saying, “The GoldBod Act is a testament to the government’s commitment to fostering a sustainable and inclusive gold industry. As a responsible miners, we welcome the enhanced regulatory framework and the emphasis on environmental protection and community engagement.”

The GoldBod Act, which was passed by the Ghanaian Parliament on March 28, 2025, has been hailed as a landmark achievement, ushering in a new era of transparency, accountability, and shared prosperity in the gold sector. The Act establishes the Ghana Gold Board (GoldBod) as a powerful regulatory body with the mandate to oversee all aspects of the gold value chain, from exploration and extraction to processing, refining, and marketing.

One of the key provisions of the Act that has garnered widespread support is its focus on combating illegal mining and smuggling. Asking for anonymity, a Chief Inspector of Mines at the Minerals Commission, believes that this aspect of the Act will be a game-changer. “Illegal mining has long been a scourge, robbing our nation of its rightful wealth and causing immense environmental damage. The GoldBod Act gives us the tools we need to crackdown on these illicit activities and ensure that Ghanaian gold remains within the formal economy.”

The Act also places a strong emphasis on promoting sustainable mining practices, a move that has been welcomed by environmental advocates and local communities. Alfred Gyan Mensah, the CEO of the Atwimanso Community Mining, is optimistic about the future. “For too long, our land and water resources have been exploited without regard for the environment. The GoldBod Act’s focus on environmental protection and community engagement gives us hope that the next generation will inherit a healthier and more prosperous Ghana.”

The GoldBod Act’s provisions for supporting small-scale miners have also garnered praise from industry stakeholders. Kwame Boakye, an Artisanal Miner, believes that this aspect of the Act will be transformative. “Small-scale miners have long been the backbone of Ghana’s gold industry, yet we have often been marginalized and exploited. The GoldBod Act’s commitment to providing us with access to finance, technology, and market opportunities will finally allow us to reach our full potential.”

A Director at the Ministry of Finance, has also expressed her support for the GoldBod Act. “This legislation is a critical step in ensuring that Ghana’s gold sector contributes to inclusive economic growth and sustainable development. By addressing longstanding challenges and empowering all stakeholders, the GoldBod Act will help us unlock the full potential of our gold resources for the benefit of all Ghanaians.”

As the sun sets on Tarkwa, the excitement and optimism surrounding the GoldBod Act are palpable. Industry leaders and stakeholders alike are eager to work together to ensure the effective implementation of the Act, solidifying Ghana’s position as a global leader in responsible and sustainable gold mining. With the GoldBod Act in place, the future of Ghana’s gold sector has never been brighter.

Ghana’s gold sector is poised for an immense transformation following the passage of the long-awaited GoldBod Bill into an Act of Parliament on Friday, March 28, 2025. The majority approval of the bill marks a watershed moment in the nation’s quest to harness its abundant gold resources for sustainable economic development, fulfilling President John Dramani Mahama’s visionary plan for a transparent, regulated, and prosperous gold industry.

The passage of the GoldBod Act crowns years of extensive consultations, meticulous planning, and unwavering commitment from President Mahama to address the complex challenges that have plagued Ghana’s gold sector. From rampant illegal mining and pervasive smuggling to quality control issues and inequitable distribution of benefits, the gold industry has long been in need of complete reform. The GoldBod Act provides the legal framework and institutional capacity to tackle these challenges head-on, ushering in a new era of responsible mining and inclusive growth.

President Mahama’s vision for the GoldBod was born out of a deep understanding of the gold sector’s potential and its inherent vulnerabilities. Prior to the 2024 elections, he embarked on extensive listening tours and consultations with small-scale miners, industry experts, community leaders, and other stakeholders. These engagements revealed the urgent need for a structured framework to oversee the industry, one that could curb illegal activities, empower legitimate miners, and ensure that the benefits of gold mining are shared equitably among all Ghanaians.

The GoldBod Act establishes the Ghana Gold Board (GoldBod) as a fully empowered regulatory body with a broad mandate to oversee all aspects of the gold value chain, from exploration and extraction to processing, refining, and marketing. The Act grants the GoldBod the authority to issue licenses, enforce regulations, monitor compliance, and impose sanctions on those who violate the law.

On the issue of combating illegal mining and smuggling, the Act introduces stringent measures to combat illegal mining activities, including increased penalties for offenders, enhanced monitoring and surveillance, and the establishment of specialized task forces to clamp down on illegal operations. It also strengthens border controls and customs procedures to prevent gold smuggling, ensuring that Ghanaian gold remains within the formal economy.

In the area of promoting sustainable mining practices, the Act mandates the adoption of environmentally sustainable mining practices, requiring all mining companies to implement measures to minimize their environmental impact, rehabilitate degraded lands, and protect water resources. It also promotes responsible sourcing of gold, ensuring that mining operations adhere to international best practices and respect the rights of local communities.

Coming to supporting small-scale miners,the Act provides a framework for supporting small-scale miners through access to finance, technology, training, and market opportunities. It establishes a dedicated fund to provide financial assistance to small-scale miners, enabling them to modernize their operations, improve their productivity, and comply with environmental regulations.

With regards to ensuring quality control and value addition, the Act empowers the GoldBod to establish and enforce strict quality control standards for gold produced in Ghana, ensuring that it meets international standards for purity, weight, and assay. It also promotes value addition to Ghanaian gold through the development of local refining and manufacturing industries, creating jobs and boosting economic growth.

On enhancing transparency and accountability, the Act promotes transparency and accountability in the gold sector by requiring all mining companies to disclose their financial information, production data, and environmental performance. It also establishes a multi-stakeholder oversight committee to monitor the implementation of the Act and ensure that it is achieving its intended objectives.

Stakeholders across the gold sector have expressed overwhelming support for the passage of the GoldBod Act. Small-scale miners, who have long been marginalized and exploited, see the Act as a lifeline that will provide them with the support and protection they need to thrive. Large-scale mining companies have also welcomed the Act, recognizing that it will create a level playing field and promote responsible mining practices.

“This is a historic day for Ghana’s gold sector. The passage of the GoldBod Act marks the beginning of a new era of sustainable prosperity for our nation. We are committed to working with all stakeholders to implement the Act effectively and ensure that the benefits of gold mining are shared equitably among all Ghanaians,” said Sammy Gyamfi, acting Managing Director of PMMC who supervised it to metamorphose into the GoldBod.

The passage of the GoldBod Act is expected to have a significant impact on Ghana’s economy, boosting gold production, increasing government revenue, creating jobs, and promoting sustainable development. It is a demonstration to President Mahama’s visionary leadership and his unwavering commitment to transforming Ghana into a prosperous and equitable society. With the GoldBod Act now in place, Ghana is well-positioned to unlock the full potential of its gold resources and secure a brighter future for all its citizens.

At the heart of this transition is the pressing issue of the assaying regime, which has long been a point of contention between small-scale and large-scale mining operations. Sammy Gyamfi, Esq., the acting managing director of PMMC, addressed this critical concern in an inclusive briefing to the staff of PMMC and PJL.

According to him, the current system has created a concerning imbalance, where small-scale miners are required to bring their gold bars to PMMC for assaying to determine the purity and, consequently, the value before export, and unlike the what pertains for the small-scale miners, the large-scale mining companies have enjoyed a much more lenient approach, effectively operating with limited oversight.

The acting MD revealed that the large-scale miners often conduct their own assaying and smelting processes, with minimal involvement from the regulatory authorities, emphasizing that they smelt the gold into Dore bars, record the weights and purity, and then export the gold without direct supervision. This lack of transparency has allowed for the possibility of underreporting, which directly impacts the royalties and taxes the country can collect.

This asymmetry in the assaying regime has deprived Ghana of the full economic benefits of its mineral wealth, as the value of the gold exports is determined by the self-reported data from the large-scale miners. If they underreport the weights and purity, the authorities have no means to verify the accuracy of their declarations. This is a significant challenge that must be addressed to ensure Ghana rightfully captures the true value of its gold resources.

The transition to the GoldBod aims to level the playing field and empower the country to take control of its mineral resources. The new entity will be granted the exclusive power to assay and purchase gold from both small-scale and large-scale miners, effectively closing the loophole that has allowed the large-scale companies to operate with minimal oversight.

The GoldBod will require all large-scale mining companies to bring their Dore bars to its facilities for assaying, just as the small-scale miners do. This will ensure a uniform and transparent system, where the authorities can independently verify the weights and purity of the gold before it is exported.

Furthermore, the GoldBod will be empowered to negotiate and purchase a percentage of the large-scale gold production, enabling Ghana to maintain a stronger grip on its precious resources. The authorities will no longer rely solely on the self-reported data from the mining companies, as direct purchasing of a portion of their output will allow better monitoring and control of the flow of gold out of the country.

The transition to the GoldBod is expected to have far-reaching implications for Ghana’s gold industry. Not only will it enhance transparency and fairness in the assaying regime, but it will also enable the country to capture a greater share of the value generated from its mineral wealth.

Mr. Gyamfi expressed confidence in the success of this transition, stating, “The GoldBod will be equipped with state-of-the-art assaying facilities and a highly skilled workforce to ensure the efficient and accurate assessment of all gold, whether from small-scale or large-scale miners.”

As the PMMC staff navigate this transformative period, they are cautiously optimistic about the opportunities that the GoldBod will bring. “This is a significant step forward for Ghana’s gold sector. We are excited to be part of an organization that will help maximize the country’s benefits from its natural resources, one employee remarked after the durbar.

The transition to the GoldBod marks a pivotal moment in Ghana’s quest to optimize the value of its gold industry. By addressing the longstanding imbalances in the assaying regime, the country is poised to unlock new avenues for economic growth and development, ultimately strengthening its position as a global leader in the gold trade.

Mr. Gyamfi acknowledged the longstanding discrepancies in the way gold is assayed and valued between small-scale and large-scale miners, a disparity that has long plagued the industry. He contended that currently, small-scale miners are required to bring their gold bars to PMMC for assaying, to determine the purity and, consequently, the value, which is not the case of the large-scale mining companies which have not been subject to the same level of scrutiny.

The acting MD revealed that the large-scale mining companies often conduct their own assaying and smelting processes, with limited involvement from the regulatory authorities, and for that matter, they smelt the gold into Dory bars, record the weights and purity, and then export the gold without our oversight and this he noted, has created a concerning lack of transparency, as they have no way of verifying the accuracy of their declarations.

This unevenness in the assaying regime has had significant implications for Ghana’s ability to maximize the value of its gold exports. “The value of the gold is based on the weights and purity reported by the large-scale miners, but if they underreport, we have no means to detect it,” Mr. Gyamfi lamented. “This directly impacts the royalties and taxes the country can collect, ultimately depriving Ghana of the full economic benefits of its mineral wealth.”

The transition to the GoldBod aims to address this imbalance head-on. Gyamfi emphasized that the new entity will be granted the exclusive power to assay and purchase gold from both small-scale and large-scale miners, effectively closing the loophole that has allowed the large-scale companies to operate with little oversight.

According to Mr. Gyamfi, “The GoldBod will require all large-scale mining companies to bring their Dory bars to our facilities for assaying, just as the small-scale miners do. This will ensure a uniform and transparent system, where we can independently verify the weights and purity of the gold before it is exported.”

Additionally, the GoldBod will be empowered to negotiate and purchase a percentage of the large-scale gold production, enabling Ghana to maintain a stronger grip on its precious resources. This direct involvement in the purchasing process will provide the authorities with better oversight and control over the flow of gold exports.

The transition to the GoldBod is expected to have far-reaching implications for Ghana’s gold industry. It will not only enhance transparency and fairness in the assaying regime but also enable the country to capture a greater share of the value generated from its mineral wealth. This shift is anticipated to unlock new avenues for economic growth and development, ultimately strengthening Ghana’s position as a global leader in the gold trade.

The acting MD expressed confidence in the success of this transition, stating that the GoldBod will be equipped with state-of-the-art assaying facilities and a highly skilled workforce to ensure the efficient and accurate assessment of all gold, regardless of whether it is from small-scale or large-scale miners. This level of operational capability and expertise will be crucial in maintaining the integrity of the new assaying system.

As the PMMC staff navigate this transformative period, they are cautiously optimistic about the opportunities that the GoldBod will bring. One employee remarked, “This is a significant step forward for Ghana’s gold sector. We are excited to be part of an organization that will help level the playing field and ensure that our country truly benefits from its natural resources.”

The transition to the GoldBod marks a pivotal moment in Ghana’s quest to optimize the value of its gold industry. By addressing the longstanding imbalances in the assaying regime, the country is poised to unlock new avenues for economic growth and development, ultimately strengthening its position as a global leader in the gold trade. This transformative initiative represents a bold and strategic move by the Ghanaian authorities to assert greater control over their mineral wealth and ensure that the country reaps the full economic rewards of its natural resources.

The briefing began with Gyamfi’s commendation of the PMMC staff, acknowledging their diligent efforts and the significant improvements across various departments. This set the stage for the unveiling of the government’s vision to streamline and strengthen the country’s gold sector through the establishment of the GoldBod.

Gyamfi explained that PMMC, a company with a rich history dating back to 1963, will be wound up, and its functions, assets, and liabilities will be taken over by the new GoldBod. This move is not a collapse, but rather a transition to a more robust and empowered entity with a different legal structure – a statutory corporation.

One of the pivotal changes is the GoldBod’s strengthened legal backing as the national assayer, granting it the exclusive power to buy gold from both small-scale and large-scale miners. This, Gyamfi noted, will enable the organization to spearhead reforms in the assaying regime and work towards a more uniform system, enhancing transparency and control over the country’s precious mineral resources.

Furthermore, the GoldBod will be granted the exclusive authority to export all gold from small-scale mining, as well as the ability to negotiate and purchase a percentage of large-scale gold production. This strategic move will significantly bolster Ghana’s grip on its gold industry, ensuring greater oversight and maximizing the benefits for the nation.

Gyamfi also highlighted the GoldBod’s expanded responsibilities, which will include promoting responsible sourcing, traceability, and value addition in the gold industry. This, he said, will involve leading the downstream fabrication of gold into minted jewelry and other value-added products through PJL, the company’s subsidiary.

To accommodate these ambitious goals, the GoldBod will require a more robust organizational structure, with the current PMMC workforce of 93 permanent employees being realigned and supplemented to reach a targeted 253 staff members. Gyamfi assured the audience that the new compensation scheme under the GoldBod will be on par with the best practices in the industry, including institutions like Minerals Commission and the Bank of Ghana.

One of the practical considerations discussed was the relocation of the PMMC office to a more suitable location. Gyamfi revealed that the organization has been allocated the former Bank of Ghana office, which will undergo minimal rehabilitation to accommodate the staff as soon as possible, with a view to constructing a purpose-built GoldBod headquarters in the near future.

The transition to the GoldBod marks a significant shift in Ghana’s gold sector, with the aim of enhancing transparency, control, and value addition within the industry. As the staff of PMMC and PJL navigate this change, they appear cautiously optimistic, recognizing the immense potential of the new entity to propel Ghana’s gold industry to greater heights.

Gyamfi’s concluding remarks encouraging the employees to submit their updated CVs set the stage for the realignment of the workforce and the identification of potential vacancies to be filled both internally and externally. This process will be crucial in ensuring the GoldBod is equipped with the right talent to drive the transformation and deliver on its ambitious goals.

The transition to the GoldBod represents a pivotal moment in Ghana’s gold sector, promising a future of greater control, enhanced transparency, and the pursuit of value addition, a promising path that will undoubtedly leave a lasting impact on the country’s economic landscape.

Speaking to Accra-based Joy News, he revealed that members of Parliament have done a lot of rigorous work on the bill.

The Ghana Gold Board Bill 2025 has been presented to Parliament, seeking to establish the Gold Board to regulate the buying, selling, and export of gold while generating foreign exchange for the country.

According to the government, the board will play a crucial role in formalizing gold trading within the small-scale mining sector, improving traceability, and advancing efforts to secure the London Bullion Market Association (LBMA) certification.

Following its introduction, First Deputy Speaker Bernard Ahiafor referred the bill to the Finance and Lands and Natural Resources Committees for further review and reporting.

“Honourable members, the Ghana Gold Board Bill 2025 is presented and read for the first time and accordingly referred to the Finance Committee for consideration and reports,” he announced.

The Ghanaian economy entered 2025 with a mixed bag of challenges and opportunities as the cedi continued its perennial battle against major trading currencies.

According to the Bank of Ghana’s (BoG) January 2025 Summary of Economic and Financial Data report, the cedi recorded an average depreciation rate of 2.06% against the US dollar, British pound, and euro in January.

This marked a significant improvement compared to December 2024’s alarming depreciation rates of 19.2% against the dollar, 17.8% against the pound, and 13.7% against the euro.

While the January 2025 figures indicate some level of stabilization, 2.4% depreciation against the dollar, 0.8% against the pound, and 3% against the euro, these fluctuations in currency value continue to cast long shadows across government operations, businesses, entrepreneurs, and consumers.

The Impact on Government

The government, as the largest participant in the economy, remains particularly vulnerable to exchange rate volatility. A relatively high depreciation rate in December 2024 meant increased debt-servicing costs for Ghana’s external borrowings, which constitute about 56% of the country’s total debt stock.

The International Monetary Fund (IMF) reported in its December 2024 review that Ghana spent over GH₵40 billion ($3.4 billion) servicing external debts, a situation exacerbated by cedi depreciation.

Although the lower January depreciation offers some breathing room, it still impacts the government’s ability to fund critical sectors such as education, healthcare, and infrastructure.

Import-dependent projects, including the supply of medical equipment or energy infrastructure, see higher costs due to exchange rate pressures. These further strains public finances already grappling with a budget deficit of GH₵72 billion as of December 2024.

Corporate Sector and Large Businesses

Large corporations, particularly those in import-heavy industries such as manufacturing, retail, and oil and gas, feel the pinch of currency fluctuations. For instance, Unilever Ghana reported a 14% increase in the cost of raw material imports in Q4 2024, while TotalEnergies Ghana projected a 9% rise in fuel prices by February 2025 due to forex-related adjustments.

Moreover, financial institutions face heightened risks of loan defaults. Businesses borrowing in dollars but earning revenue in cedis struggle to maintain repayment schedules. A Bank of Ghana study in January 2025 revealed that 37% of all non-performing loans (NPLs) were tied to businesses unable to manage exchange rate pressures.

The weaker cedi also creates uncertainty in foreign direct investment (FDI) flows. Investors tend to shy away from economies with volatile currencies, despite Ghana’s recent gains in attracting $1.3 billion in FDI inflows in 2024, driven by opportunities in mining and fintech.

Entrepreneurs and SMEs

Small and medium-sized enterprises (SMEs) often bear the brunt of currency depreciation due to their limited financial buffers and lack of access to hedging instruments. In January 2025, many SMEs operating in sectors such as retail, hospitality, and agribusiness reported a 7% rise in operational costs compared to January 2024.

Entrepreneurs like Kofi Mensah, owner of an agro-processing startup in Kumasi, lamented the increase in machinery import costs, which ate into his profit margins by 11%.

SMEs are the backbone of Ghana’s economy, accounting for 70% of employment and 92% of registered businesses. Thus, their struggles directly translate into slower economic growth and increased unemployment, which stood at 13.2% as of December 2024.

Goldbod rescuing the Cedi 

Government has announced plans to leverage the country’s gold reserves to shore up the local currency while also providing regulatory oversight for small-scale mining activities.

The finance minister, Dr Casiel Ato Forson has given the strongest indication that  they will allocate the cedi equivalent of US$279million as a revolving fund for the Board, allowing it to purchase and export at least three tonnes of gold per week from small-scale miners.

This measure, according to Dr. Forson, is expected to increase the country’s foreign exchange reserves while formalising a sector that has long been vulnerable to smuggling and illicit financial flows.

Also, in a bid to further incentivise the sector, he announced that government will abolish the 1.5 percent withholding tax on unprocessed gold winnings by small-scale miners. This move will go a long way to bring an end to the volatility of national currency.