Acting Managing Director of the Precious Minerals Marketing Company (PMMC), Sammy Gyamfi, has called for a more structured and regulated approach to Ghana’s gold trade.
He argued that the current system was heavily flawed, depriving the country of the much-needed foreign exchange and additional benefits.
“That unstructured, unregulated system led to a situation where, number one, we were not getting the forex we are supposed to get as a nation from the gold we export from Ghana”
Sammy Gyamfi, Acting Managing Director of the Precious Minerals Marketing Company (PMMC)
According to Gyamfi, the primary objective of the new gold trade regulations is to ensure that Ghana receives the full benefits of its gold exports.
He explained that the existing system, which allows over seventy exporters licensed by the Ministry of Lands and Natural Resources to operate freely, has created an uneven playing field.
The presence of multiple buyers, including PMMC, the Bank of Ghana, and private entities, has resulted in a market where legal exporters struggle to compete.
He insisted that the situation has forced many traders, particularly foreign operators, to resort to smuggling. The consequences of this, he notes, are dire, as it significantly reduces the amount of foreign exchange flowing into the country.
“When they smuggle, the state is deprived or denied of the dollars, the forex.”
He linked this shortfall in forex reserves to the rapid depreciation of the cedi.
He explained that businesses needing dollars for imports struggle to access them through official channels, forcing them to turn to the black market.
This, he argued, drives up exchange rates, pushing the cost of goods higher and worsening inflation.
A Centralized Gold Export System
Gyamfi supported President John Mahama’s proposal for a more controlled gold export system under a newly established Gold Board (GoldBod).
He asserted that if Ghana is serious about stabilizing the economy and addressing inflation, it must take decisive action against unchecked gold trading.
“Why are you allowing anybody, every Tom, Dick, and Harry to buy the gold, the majority of them smuggling the gold?”
Sammy Gyamfi, Acting Managing Director of the Precious Minerals Marketing Company (PMMC)
He proposed that a single entity, properly resourced and regulated, should be responsible for licensing agents, purchasing gold, and managing all exports.
He explained that by centralizing the process under the Gold Board, Ghana can ensure that all foreign exchange earnings from gold sales return to the country, strengthening the cedi and stabilizing the economy.
“No one can export gold except the GoldBod and once we are the ones exporting, all the dollars will come back”
Sammy Gyamfi, Acting Managing Director of the Precious Minerals Marketing Company (PMMC)
Measures Against Gold Smuggling
Gyamfi also highlighted the urgent need for stronger enforcement mechanisms to combat gold smuggling.
He pointed out that despite the widespread illicit trade in gold, there has been little effort to crack down on smugglers.
“When was the last time you heard that a gold smuggler has been arrested and his gold has been confiscated?” he asked.
He argued that Ghana’s current approach to enforcing gold trade laws has been ineffective, noting that law enforcement agencies have not prioritized tackling smuggling, leaving a critical gap in the fight against illegal gold exports.
To address this, Gyamfi outlined new powers that will be granted to the Gold Board under the proposed legislation.
He explained that the board will be authorized to appoint inspectors with the same legal authority as police officers.
“They can search, they can ask for documents, and if they have cause to believe that you are engaged in illegal gold trading or smuggling, they can seize your gold, they can impound, they can confiscate”
Sammy Gyamfi, Acting Managing Director of the Precious Minerals Marketing Company (PMMC)
Collaboration with Security Agencies
The enforcement of gold trade regulations will not be left to the Gold Board alone.
Gyamfi stated that a special task force will be established, working in collaboration with the Ministry of National Security, the Ministry of the Interior, and the Ministry of Defense.
He assured that the government was well aware of the routes used for smuggling and the individuals involved.
“This is gonna be special, and we know the routes. We know those involved in the smuggling and all that.”
He expressed confidence that once the bill is passed and assented to by the President, there will be a visible crackdown on gold smuggling.
“You will see for the first time gold smugglers being raided, arrested, their gold being seized, and them being taken to court, prosecuted, and some being convicted”
Sammy Gyamfi, Acting Managing Director of the Precious Minerals Marketing Company (PMMC)
While he acknowledged that eliminating smuggling entirely may not be possible, he believes that strong enforcement and strict regulation will serve as a deterrent, significantly reducing the scale of illegal gold exports.
With Ghana’s economy heavily dependent on its mineral resources, Gyamfi insisted that ensuring that gold revenues benefit the state is critical.
He maintained that by tightening regulations and enforcing the law, Ghana can maximize its foreign exchange earnings, stabilize the cedi, and ultimately ease the economic burden on its citizens.
