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Ghana, Africa’s top gold producer, has set an ambitious target to generate up to $12 billion annually from its small-scale gold mining sector. This projection hinges on the government’s plan to double current production levels while formalizing and regulating the artisanal and small-scale mining (ASM) industry, which has long operated in a largely informal and fragmented system.
At the heart of the initiative is the establishment of the Ghana Gold Board (GoldBod), a centralized regulatory body mandated to oversee all gold purchases and sales in the small-scale sector. The move aims to curb illegal mining locally known as “galamsey” and reduce gold smuggling, which has been costing the country billions in lost revenue and foreign exchange.
Currently, small-scale miners contribute roughly one-third of Ghana’s total gold production. In 2023 alone, the country’s gold exports rose by over 50%, reaching $11.6 billion. Officials say that with effective regulation, improved transparency, and enhanced monitoring, revenues from the small-scale mining sector could surpass $12 billion annually.
Finance Minister Cassiel Ato Forson explained that the Gold Board will act as the sole buyer of gold from small-scale producers, working through licensed aggregators and community-level traders. This centralized purchasing model is intended to eliminate the uncontrolled and opaque trading networks that fuel smuggling and environmental degradation.
In support of this strategy, the government recently reached agreements with nine large mining companies to purchase 20% of their gold output domestically. As a result, the Bank of Ghana’s gold reserves increased from 8.77 metric tons in 2022 to 30.8 tons by February 2025. This helped boost Ghana’s gross reserves to $9.4 billion, strengthening the country’s fiscal position and the stability of the Ghanaian cedi.
However, authorities acknowledge that environmental and social concerns remain a major challenge. Illegal mining has devastated rivers, farmlands, and forest reserves, with the country losing an estimated $2 billion annually due to tax evasion and ecological damage. The government says the formalization of the ASM sector will allow it to better enforce environmental standards, promote responsible mining practices, and protect local communities.
The shift toward formalization and centralized oversight is also designed to improve miners’ access to finance, training, and safer technologies turning a traditionally hazardous and low-income activity into a sustainable economic pillar.
With gold prices staying strong on global markets, Ghana’s focus on organizing and scaling its small-scale mining industry could be transformative. If successful, the initiative may not only help the country hit its $12 billion annual target but also serve as a model for other resource-rich nations across Africa.
