Alfred Appiah, a policy analyst and an economist, has called for a strategic shift in how Ghana views the Artisanal and Small-Scale Mining (ASM) sector, urging the government to prioritize fiscal revenue mobilization over mere foreign exchange accumulation.
While the global gold market teeters on the edge of a historic $5,000 per ounce milestone, driven by unexpected tariff tensions over Greenland, Ghana’s ASM sector has emerged as the nation’s primary gold exporter.
However, Alfred Appiah notes a persistent structural disconnect where the billions of dollars in “gold dollars” flowing through the Ghana Gold Board (GoldBod) do not translate into usable liquidity for the national budget.
“It is worth remembering that forex inflows from trading small scale gold are not necessarily revenue to government. So when Goldbod generates $10 billion in exports, that is not revenue available to the government to use to support the budget. The state must focus on ensuring that its largest contributor to gold exports also makes a fair contribution to fiscal revenues.”
Alfred Appiah
This fiscal gap, he argues, must be closed to ensure that the mineral wealth of the country directly supports public finances rather than just stabilizing the external balance of payments.
The current economic landscape has seen gold prices surge by approximately 13% this year, placing the metal just $12 shy of the $5,000 mark a valuation previously unpredicted by traditional financial models.
Navigating the Greenland Tariff Shock and Price Rallies
The unprecedented climb in gold prices toward the $5,000 ceiling is largely attributed to a geopolitical climate that no one saw coming, specifically the “tariff threats to some European countries over Greenland.”
This volatility has turned gold into a safe-haven asset, benefiting Ghana’s macro-economy by increasing the volume of “gold dollars” entering the system.
For a nation looking to stabilize its currency, these inflows are a lifeline, yet the economist warns that a “gold price boom will not last forever.”
To sustain the gains made during this period, the state must move beyond the passive benefit of high prices and institutionalize a system where every ounce of gold produced by small-scale miners contributes to the public purse.
To ensure these gains are not lost when the market eventually cools, the expert suggests that the government must leverage the current formalization efforts of the ASM sector.
The state now possesses the tools to track every gram of gold from the pit to the export terminal, creating a level of transparency that was historically impossible.
By using this “information to enforce compliance,” the government can create a more resilient fiscal environment that survives price fluctuations.
The goal is to move the ASM sector from being a seasonal contributor to a permanent pillar of the national budget, mirroring the reliability of large-scale commercial mines.
Transforming Export Visibility into Fiscal Dividends
The primary challenge remains that the $10 billion generated through GoldBod’s operations remains largely within the private sector’s hands, serving as a foreign exchange buffer rather than a direct tax asset.
Appiah emphasizes that “difficult but necessary decisions” are required to bridge this divide, specifically targeting operators who are currently failing to pay the appropriate taxes despite high production levels.
In this era of record prices, the state has a moral and economic obligation to ensure that the extractive sector supports the “public finances” that fund essential infrastructure and social services.
Ultimately, the sustainability of Ghana’s mining-led recovery depends on a fair and transparent tax regime. As the ASM sector continues to dominate the export landscape, its integration into the formal fiscal framework is no longer optional.
By focusing on revenue mobilization today, the government can secure the funding needed for its flagship initiatives, ensuring that the current gold boom leaves a lasting legacy beyond a temporary surge in the central bank’s reserves.
The focus must shift toward a model where “the largest contributor to gold exports” is also the largest contributor to the wealth of the Ghanaian people through the national budget.
Balancing External Stability with Domestic Growth
While the “stronger foreign exchange inflows” are vital for the cedi’s stability, the policy analyst highlights that the true measure of mining’s success is its impact on the domestic economy.
The current price spike provides the perfect “fiscal space” to implement stricter compliance measures without stifling the industry’s growth.
If the government can successfully capture a greater portion of the ASM sector’s value, it will reduce its reliance on external debt and create a self-sustaining financial model for the “Big Push.”
In conclusion, the path forward for Ghana’s extractive industry lies in the aggressive pursuit of fiscal accountability.
The state must use its “visibility over output volumes” to ensure that every miner, no matter how small, contributes to the development of the nation.
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