Senior Vice President of IMANI Africa, Kofi Bentil has voiced a mixture of cautious optimism and skepticism in an analysis of the newly established Ghana Gold Board (Goldbod).

Kofi Bentil lauded the intention behind Goldbod but warned that its implementation could pose serious risks if not properly structured and monitored.

“Our issue with Goldbod is that when you concentrate commercial activity, plus regulatory activity, plus all of that in a government institution… the people will be bad.

“That’s why we have, for instance, in governance, separation of powers.”
Kofi Bentil, Senior Vice President of IMANI Africa

He noted that while the legislation behind Goldbod seems directionally sound, it is riddled with what he described as “landmines,” cautioning, “it will explode one day.”

The IMANI vice president further argued that the government’s current handling of gold, particularly amid soaring global prices, could lead to mismanagement.

“Every money we put as a government behind the buyer of gold today, tomorrow will come back, and we’ll establish probes around them because they will be wasted and looted.”
Kofi Bentil, Senior Vice President of IMANI Africa

Ghana, the top gold-producing country in Africa, has long grappled with the challenge of converting its mineral wealth into sustainable economic development.

Over the decades, successive governments have launched initiatives to maximize returns from the resource.

The Goldbod was established to regulate and streamline activities in the gold trade, particularly in the small-scale sector which, despite being a major source of production, suffers from poor oversight, lack of compliance, and a tainted reputation globally.

‘Motives Good, But Assumptions Dangerous’

Kofi Bentil explained that the underlying motivation for establishing Goldbod is laudable: to ensure Ghana derives maximum value from its mineral resources.

“Something different must be done. To that extent, the motivation for the gold board is absolutely fantastic.”
Kofi Bentil, Senior Vice President of IMANI Africa

However, he stressed that good intentions must be matched by sound assumptions and implementation strategies.

“It’s a basic tenet of policy analysis. There are basic things that drive the formation, the motives for it, and usually the motives are very good.

“But there are also assumptions that are made. And usually, the assumptions are wrong.”
Kofi Bentil, Senior Vice President of IMANI Africa

Kofi Bentil further explained, “Every time a state institution is formed, there’s an assumption that it will be manned by perfect people… It almost never happens.”

Kofi Bentil drew parallels between Goldbod and past controversial initiatives like the Agyapa Royalties deal, which IMANI staunchly opposed, citing lack of transparency and potential for misappropriation.

He said, “There’s always good intention, but then the devil is in the details of how it is done.”

Call for Compliance Reforms

While governance experts like Bentil have raised concerns over structural flaws, stakeholders within the gold industry are calling for immediate reforms to enhance compliance and improve the sector’s global standing.

Dr. Stephen Ackah, Executive Director of the Ghana Gold Expo Foundation, emphasized the urgent need for Goldbod to focus on standardizing and enforcing compliance within the country’s gold trade.

“We want to see how the Goldbod can support the compliance nature of the gold trade in Ghana, which we are not currently seeing.”
Dr. Stephen Ackah, Executive Director of the Ghana Gold Expo Foundation

Despite Ghana’s impressive gold output, small-scale miners, who contribute a significant share of production, face difficulties selling on international markets.

According to Dr. Ackah, a lack of certification and rigorous compliance standards has led to stigmatization of Ghanaian gold, especially from the small-scale sector.

“None of the LBMA (London Bullion Market Association) refineries have ever accepted small-scale mining gold, all because of the tag that we have,”
Dr. Stephen Ackah, Executive Director of the Ghana Gold Expo Foundation

This perception, he warned, creates barriers that limit the country’s ability to benefit from high global gold prices and constrains foreign exchange earnings.

He queried, “If there is a tag on an asset, which is the number one commodity in our country… how are you going to achieve your balance of payments?” highlighting the wider economic consequences.

Both Bentil and Ackah emphasized that while the state has a critical role to play, the success of Goldbod will depend heavily on its ability to attract and collaborate with credible private sector players, and to operate with high standards of governance and transparency.

The future of Ghana’s gold industry hangs in the balance, offering a historic opportunity to rewrite its narrative or repeat its challenges. The choice, as always, lies in the details of governance and action.