CEO of the Chamber of Licensed Gold Buyers - CLGB
Introduction
Ghana’s natural resources have long supported its economy, with gold and cocoa standing out as major pillars of export earnings and rural livelihoods. For decades, the Ghana Cocoa Board (COCOBOD) has run a centralised marketing and pricing system that stabilises farmer incomes and protects Ghana’s global reputation for quality.
In 2025, Ghana took a major step by introducing a similar institutional structure in the gold industry through the Ghana Gold Board (GoldBod). The Board was created to regulate, aggregate, and market gold, especially from the artisanal and small-scale mining (ASM) sector.
While both systems aim to ensure fair returns and national value retention, the GoldBod model uses a more market-driven approach. If fully optimised, it could unlock even greater national benefits than the cocoa model. Understanding how requires a closer look at how GoldBod works, what advantages it offers, and the lessons it can take from Ghana’s cocoa experience.
The Gold aggregation model explained
The Gold Aggregation Model under the GoldBod Act 1140 (2025) centralises the collection, assaying, and export of gold from licensed small-scale miners. GoldBod acts as the sole authorised aggregator and exporter, buying gold through licensed agents and accredited refiners.
This system ensures every gram of ASM gold is captured, documented, and sold through legal channels.
Through aggregation, GoldBod can:
• Negotiate stronger international prices through bulk sales.
• Reduce smuggling and illicit trade.
• Offer transparent pricing that reflects real market conditions.
• Build national gold reserves to strengthen the cedi and support development financing.
This structured offtake mechanism ensures:
• Fair and transparent pricing for ASM producers.
• Traceable and conflict-free gold that meets OECD and LBMA standards.
• Improved state revenue capture.
• Domestic reserve accumulation that strengthens the central bank.
In effect, GoldBod plays for gold the role COCOBOD plays for cocoa — stabilising, aggregating, and ensuring quality.
Between February and May 2025, GoldBod exported 41.5 tonnes of gold worth US$4 billion, with May alone contributing 11 tonnes valued at US$1.17 billion. These numbers show the model’s ability to formalise ASM operations and increase foreign exchange earnings.
The COCOBOD Model: A benchmark in stabilisation and producer welfare
The cocoa sector operates under a semi-monopoly system. COCOBOD, through licensed buying companies (LBCs), purchases cocoa from farmers at a producer price announced at the start of each season. Prices are set based on international forecasts, production costs, and government policy.
This provides:
• Protection from global price volatility.
• Strong quality control systems.
• A premium global brand — “Ghana Cocoa”.
• Reinvestment in farmer support programmes.
However, the model has limits. Farmers don’t always benefit when world prices rise, and the administrative cost of heavy structures and syndicated loans reduces flexibility.
Both models aim to protect small producers. But gold offers a far stronger macroeconomic lever because it is a monetary asset that directly boosts foreign reserves.
Quantifying the GoldBod impact
Recent performance highlights the model’s potential:
• 41.5 tonnes exported (Feb–May 2025) valued at US$4 billion.
• ASM output grew by 70% from 1.1M oz to 1.9M oz in 2024.
• ASM contribution to national production rose from 28% to 39%.
• BoG reserves rose to 37.06 tonnes in 2025 — a 21% increase.
If sustained, GoldBod could push Ghana’s production beyond 5.1 million ounces in 2025, up from 4.8 million in 2024.
Unlocking the full potential of the model
To maximise the aggregation model’s impact, Ghana must go beyond simple export aggregation. Gold’s global trade dynamics require a flexible, transparent, and responsive pricing structure.
Key strategies include:
1. A Dynamic and Transparent Pricing Framework
Real-time pricing pegged to LBMA spot prices ensures miners receive fair market value. Digital payments can strengthen trust and eliminate underreporting.
2. A Gold Price Stabilisation Fund
A stabilisation fund can provide a transparent floor price, protecting miners from sharp price drops.
3. A Living Income Framework for ASM
A system similar to cocoa’s income benchmarks can ensure fair earnings tied to compliance and productivity.
4. Expand Local Value Addition
With more than 95% of gold exported raw, refining and jewellery manufacturing could add US$2–3 billion annually. Local beneficiation also supports job creation and SME growth.
5. Producer Support Mechanisms
A Gold Development Fund could finance training, reclamation, equipment, and safety programmes.
6. Stronger Financial Linkages
The reserves built through GoldBod purchases can help stabilise the cedi and improve Ghana’s credit profile.
7. Ethical Branding and Certification
Positioning Ghana’s gold as “Ethical Gold from Ghana” can attract ESG-aligned premiums.
8. Regional Aggregation Hubs
Regional assay and buying centres will cut costs and increase supply consistency.
9. Digital Traceability
A full digital system for licensing, ID, and payments will reduce smuggling and under-reporting.
10. Strengthen ASM Cooperatives
Cooperatives can improve access to capital, equipment, and training — similar to cocoa farmer groups.
Why Gold aggregation could outperform cocoa pricing
Cocoa provides stability. Gold offers scalability.
Gold is mined all year, priced daily, and has strong global demand. With flexibility and fairness built in, the gold model can deliver:
• Higher export revenue with lower administrative cost.
Stronger reserve accumulation.
• Better rural incomes through transparent pricing.
• A major reduction in smuggling losses.
If current performance holds, ASM gold could generate more than US$12 billion yearly — triple the cocoa sector’s export earnings.
Broader economic payoff
A well-managed aggregation model can deliver:
• US$10–12 billion in annual FX inflows.
• GH₵5–7 billion in tax and royalty revenues.
• More stable employment for 1.5 million+ ASM workers.
• A stronger cedi through increased reserves.
These gains far exceed what cocoa can deliver at current scale.
Conclusion
COCOBOD offers a strong policy foundation, but GoldBod represents a modern evolution in resource governance. The gold aggregation model blends transparency, market responsiveness, and national interest. If managed effectively, it can raise incomes, strengthen reserves, support industrial growth, and help stabilise the currency.
The model works. The data proves it.
The task now is to refine, scale, and sustain it.
GoldBod’s approach offers Ghana a blueprint for equitable wealth distribution and sustainable resource management. The opportunity is clear — and Ghana must seize it.
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