By Amos SAFO
Many Ghanaians have been incensed by the decision of the John Mahama Administration to allocate a colossal US $279 million for the operation of a new government monopoly named the Gold Board.
In the 2025 budget, Ghana’s the Finance Minister, Dr. Cassel Ato Forson announced a $279 million revolving fund to the Ghana Gold Board (GOLDBOD) to enable it to purchase and export at least three tonnes of gold per week. According to Dr. Forson, the policy is aimed at boosting the foreign exchange inflows and gold reserve accumulation of Ghana.
However, not only is the allocated amount the subject of angry debates, the rational for creating such a government monopoly raises more questions than answers. This is because there is already a state body mandated to regulate the acquisition and sale of gold in and outside Ghana.
Sole buyer
According to a video circulating on social media, Mr. Sammy Gyamfi, the Acting CEO of the Minerals Commission explained that the Gold Board will be the sole buyer and exporter of gold henceforth. “Every gold mine in Ghana will have to be sold to Gold Board.
Gold Board will become the national assayer to ensure that every gold mined in Ghana passes through the hands of the Board” he buttressed.
This implies that the Gold Board will become a monopoly in the gold export business. However, this plan contradicts the Act that established the Precious Minerals Marketing Corporation.
The Precious Minerals Marketing Corporation Act, 1989 (PNDCL 219), established the Precious Minerals Marketing Corporation (PMMC), a state-owned enterprise, to handle the grading, assaying, valuing, processing, buying, and selling of precious minerals in Ghana. Its mandate includes licensing small-scale miners, buyers and sellers.
If Sammy Gyamfi’s explanation is indeed the government’s policy, then the PMMC, which is backed by an Act will soon lose its mandate and relevance. The new Gold Board will also likely undermine the activities of small-scale gold miners and dealers.
It is speculated that private licences will be given to people in high political echelons of the current political dispensation. Already licences granted to some small-scale miners by the Akufo-Addo government have been cancelled by the current government.
If that was to happen the wealth of this country would be concentrated in the hands of a few people, with the potential of widening the poverty gap over the years. This could spark future political and economic unrest; hence the need for the government to tread cautiously on attempts to undermine the livelihoods of people in small-scale gold mining and marketing.
Misplaced priority
Many people are questioning why a government that has defunded the free Senior Secondary School policy has allocated such a huge amount for the operation of the new Gold Board.
If the government’s policy is implemented, the Gold Board will operate like the Ghana Cocoa Board, which negotiates and sells cocoa at the world price, but decides the percentage of the world prices to give to farmers. Thus, since independence cocoa farmers have never been satisfied with the prices the government buys their cocoa.
Cocoa prices
In fact, over the years cocoa prices have become more political than issues of livelihood. In the run up to the 2024 election, President Akufo-Addo offered farmers a slight increase in the producer price of cocoa, raising it from GH₵3,000 to GH₵3,100 per 64kg bag.
This translated to a 0.03% rise from the previous rate set in September. President Akufo-Addo explained that this increase was a response to current market conditions, and it aligns with his ongoing efforts to improve the livelihoods of cocoa farmers in Ghana.
In response, then opposition National Democratic Congress (NDC) promised to offer GH₵6000 per bag should it be voted to power. But once in power the NDC has backtracked from its promise, blaming it on the poor economy it inherited.
In February, 2025 the NPP Minority Caucus in Parliament urged the government to increase the producer price of cocoa to at least GH¢7,400 per bag, citing the surge in world market prices. According to them, the world market price of cocoa had exceeded $11,000 per ton, with the government promising to pay farmers 70 per cent of the world market price.
Agyapa Royalties
What is the difference between the Agyapa Royalties under the Akufo-Addo government and the Gold Board under the Mahama government? According to available information the Agyapa Royalties was an innovative financing solution that aimed to develoр new mining projects in exchange for royalty or revenue once the mine starts producing.
The company is 100%-owned by Minerals Income Investment Fund (MIIF) on behalf of the Government of Ghana (GoG). Specifically, Agyapa Royalties would have received 75.6% of royalties from a selected portfolio of underlying gold mines under the current mining leases.
It was described as the first African focused minerals royalty company, and also the first to be listed by an African Government on the London and New York Stock Exchanges. Under its structure the MIIF would own 100% shareholder of Agyара with 75.6% of the royalties. The shareholder profile would be drawn from the 12 specific producing mines and four development assets in the portfolio of MIIF.
Benefits
- It was anticipated that Agyapa Royalties would benefit all Ghanaians regardless of which political party is in power.
- It was described as an opportunity to raise non-debt capital, which will complement the government’s debt capital markets activity.
- Once it was implemented, it was expected that the GoG will invest the profits in infrastructure, housing, health, and education across the country.
- It was to be a private sector led initiative to facilitate the development of mines in Ghana and Africa.
- Above all it was anticipated to create jobs and enhance economic development.
Akyem Mafia
Arguably, despite the anticipated benefits of Agyapa Royalties, the initiative did not appeal to Ghanaians, especially the opposition NDC, which is now in government.
While the initiative was at its infant stage, the Agyapa Royalties was politically branded as the product of the “Akyem Mafia” led by ex-President Akufo-Addo. Its opponents argued that it was designed as a springboard for the Akyem political class to enrich themselves, perhaps, to the detriment of Ghanaians.
If that was the case, which mafia group is behind the current Gold Board? Many people argue that what was wrong yesterday is wrong today. Political and economic analysts are questioning the source of funding for Gold Board. Will funding come from the IMF and World Bank? Will it be public or private funding?
Suddenly, but not surprisingly a “criminally mismanaged economy” can cough out $279 to finance the purchase of gold. Certainly, it is the current government’s priorities, not national priorities that is influencing its expenditure.
Equitable resources
As stated above, these concerns are emerging against the backdrop of the current government’s highly publicized statement that it inherited an economy that was “criminally mismanaged.” In my view, if the government is serious about improving the “weak economy”, it inherited such huge money should be channeled to agriculture and other productive sectors.
In the area of social development, more money should go into health, education and water and sanitation. Interventions in these critical areas will promote equity in the distribution of revenue from Ghana’s mineral resources.
Furthermore, it will improve Ghana’s human development index. Countries are now being assessed on achievements of human development, and no more solely on Gross Domestic Product (GDP). This is because GDP often tends to mask the poverty gap and social exclusion. Therefore, serious governments across the world are funding more social interventions and human resource development.
For this reason, the government should desist from implementing policies that concentrate our mineral resources in the hands of a few business and political cronies. It is dangerous for the countries mineral wealth to be controlled by the political elites of Ghana.
As stated earlier, it is being speculated that the motivation for the proposed Gold Board is to enrich a few people to the detriment of small-scale miners and the host communities of mining operations. These communities are victims of environmental destruction, pollution of water bodies, destruction of livelihoods, as well as health hazards.
In a nutshell, if the Agyapa Royalties was wrong, then the Gold Board, which has similarities cannot be right because it is being mooted by a different political party. Ghanaians deserve far-sighted interventions and a future that promises equitable development, especially for children and youth, who are the so-called leaders of tomorrow. What legacy are we leaving for our country?
