Full text: Finance Minister’s speech at inauguration of Goldbod’s Board of Directors
Source: myjoyonline

The Finance Minister, Dr Cassiel Ato Forson on Monday, May 19, inaugurated the board of directors of the Ghana Gold Board (GoldBod), marking a significant step in the government’s efforts to formalise and regulate the nation’s gold sector. This initiative, a key component of President John Dramani Mahama’s economic strategy, aims to streamline gold trading, curb illegal activities, and enhance foreign exchange inflows. Dr Forson highlighted the fragmented nature of the current gold market, noting that numerous individuals and entities operate without proper regulation, leading to widespread smuggling and loss of revenue. The GoldBod is envisioned to act as the sole buyer, seller, assayer, and exporter of gold from licensed small-scale miners, ensuring traceability and compliance with international standards . The establishment of the GoldBod is also seen as a strategic move to stabilise the Ghanaian cedi and bolster the country’s foreign reserves. Dr Forson emphasised that the board would oversee the entire gold value chain—from extraction to refining and marketing—both locally and internationally. To support its operations, the government has allocated $279 million as a revolving fund, enabling the purchase and export of at least three tonnes of gold per week from small-scale miners. Below is the Minister’s full speech at the ceremony. SPEECH DELIVERED BY THE FINANCE MINISTER, DR. CASSIEL ATO FORSON AT THE INAUGURATION OF THE GOVERNING BOARD OF THE GOLDBOD TODAY Esteemed Chairman and members of the Board of Directors of the Ghana Gold Board (GoldBod); I have the singular honour to congratulate you, on behalf of His Excellency President John Dramani Mahama, on your appointment to the Board. Today’s inauguration marks the climax of months of diligent and painstaking work. This journey began on January 27th, 2025, with the inauguration of the Technical Committee tasked to develop the legal and operational framework, particularly the drafting of a Bill for the establishment of the Ghana Gold Board (GoldBod). The Technical Committee delivered on its mandate in a timely and efficient manner, culminating in the passage of the GoldBod Bill by Parliament at its last session, and its subsequent assent by His Excellency the President. I must commend the members of the erstwhile Technical Committee and all who played various roles in developing the fit for purpose and time-tested GoldBod Act, within record time. Distinguished members of the Board, it bears reminding you, that the Ghana GoldBod is a flagship initiative envisioned by His Excellency President John Dramani Mahama for economic revitalization. The GoldBod is a vehicle for achieving currency stability through the structured purchasing and management of Ghana’s gold resources. As Africa’s leading gold producer, Ghana derives substantial foreign exchange earnings from gold. However, the benefits accrued from this valuable mineral remain minimal, often coming at a steep environmental cost. Historically, Ghana’s revenues from gold have been confined to traditional sources such as royalties and taxes. The Ghanaian economy has not realized the full benefit of our gold resources. Hence, the time has come for Ghana to expand beyond royalties and taxes by harnessing the entire value chain of gold. To achieve this, we must optimise every stage of the value chain—from extraction to refining, value addition and marketing, both locally and internationally. The Ghana Gold Board is here to serve as that specialised agency for effective marketing of our gold resources. This will involve the implementation of a deliberate program to formalise gold trading from the small-scale mining industry and promote traceability with the aim of enhancing the international acceptability of gold from Ghana. I am happy to announce, that the erstwhile chaos in Ghana’s gold purchasing sector that prevented the nation from fully benefiting from its gold resources, has come to an end. Hitherto, the Precious Minerals Marketing Company (PMMC) had the mandate to purchase and sell gold. However, this mandate was not exclusive. The Bank of Ghana also used to purchase gold through PMMC and other private aggregators under initiatives such as “gold for forex,” “gold for reserves”, “gold for oil,” and “gold for cash” among others. Additionally, the Minerals Income Investment Fund (MIIF), despite its primary mandate to optimize mineral investment, also ventured into gold buying, incurring substantial financial losses. Apart from these, numerous individual Ghanaians and foreigners with export licenses and/or gold buying licenses were also active in the gold purchases and export market. This fragmented, uncoordinated and unregulated system led to widespread gold smuggling and deprived the state of much-needed foreign exchange. All of this now belongs in the past, because the Ghana GoldBod is the now the sole buyer and assayer of gold, with exclusive mandate to grant license to engage in the trade of Gold from Ghana’s small-scale mining sector. Distinguished members of the Board, I am pleased to observe that the GoldBod has already began to fulfil its object and has contributed immensely to the recent stability of the Ghana Cedi through gold reserve accumulation. As of May 13, 2025, the Ghana cedi has solidified its position as the standout performer among global currencies, achieving a remarkable 16.7% appreciation against the US dollar year-to-date. This marks a significant reversal from the 13.4% depreciation observed in the same period of 2024, with the cedi earning recognition as the top-performing currency in April 2025. This rally stems from a robust policy framework, underpinned by synchronized monetary and fiscal measures, as well as a favorable global context. The central bank, in close collaboration with the Ministry of Finance, has adopted a stringent monetary policy, complemented by aggressive liquidity sterilization. Concurrently, the Ministry of Finance has implemented a disciplined fiscal stance anchored around prudent public finance management. Bolstering these efforts, enhanced foreign exchange inflows from gold, cocoa, and remittances, alongside a softening US dollar amid global uncertainties, have significantly driven the strength of the Ghana cedi. But the unprecedented performance of the Ghana cedi has not come at the cost of our safety net. In fact, our foreign exchange reserves at the Bank of Ghana reached a record-high in April 2025, surpassing targets set under the IMF-supported programme ahead of schedule. This underscores the sustainability of the cedi’s performance. The activities of the Goldbod stand to further strengthen this performance. In fact, it will change how both the Ghana cedi and Ghana’s foreign exchange accumulation will behave in the future. This paradigm shift will challenge traditional models reliant on old patterns, potentially leading to inaccurate projections and missing the true potential of the cedi. I wish to assure the Ghanaian public and our stakeholders, that the outlook for the Ghana cedi remains robust and sustainable, supported by the transformative activities of the Goldbod. I urge the newly-constituted Board to work hard to support and sustain this trajectory. Together, let us help to propel His Excellency President John Dramani Mahama’s ongoing reset of Ghana’s economy and our effort to deliver economic prosperity for all Ghanaians. I thank you and may God bless our homeland Ghana.