Reforms introduced by the Ghana Gold Board (GoldBod) in the gold trade have created 4,866 direct jobs in less than two years, the Chief Executive Officer (CEO) of the state gold-trading regulator, Sammy Gyamfi, has revealed.

According to him, the jobs comprise 361 public-sector positions and 4,505 private-sector jobs, with additional employment opportunities emerging across the artisanal gold processing, jewellery and entrepreneurship sectors.

“It gives me joy to note that the new institutional, licensing, and value addition reforms that we have introduced at the GoldBod have, in less than two years, created 4,866 direct jobs, made up of 361 public-sector jobs and 4505 private-sector jobs, while countless indirect job opportunities are being opened across the value chain for artisanal smelters, jewellers and young entrepreneurs”, he said.

He disclosed this while speaking at the second day of the Mining in Motion Conference on Tuesday, October 20.

He stressed that African countries must prioritise the creation of decent jobs and economic opportunities from their mineral resources while ensuring that mining activities do not undermine environmental protection.

“Support for private enterprise and job creation in the mineral and mining economy must therefore be a priority for all African nations,” he highlighted.

He said African governments must prioritise private businesses and job creation in the mining sector to ensure that the continent’s mineral resources benefit its people.

He added that the jobs created under GoldBod’s reforms demonstrate how changes in the sector can boost economic activity and create opportunities for businesses and individuals.

GoldBod reforms

According to Sammy Gyamfi, GoldBod has undertaken institutional, licensing and value-addition reforms aimed at strengthening Ghana's gold industry.

The reforms reorganised key aspects of the sector, improved the regulatory framework for gold trading and mining, and encouraged local processing and entrepreneurship rather than the export of raw minerals.

He said these measures have helped create thousands of jobs and opened up opportunities for miners, jewellers, smelters and other businesses along the gold value chain.

On the other hand, Ghana has recorded a huge gold trade leakage, in the last few years, according to Sammy Gyamfi.

Mr Gyamfi noted that these leakages were recorded before Ghana’s brought small-scale gold trade under a formal, regulated system to stop smuggling, improve oversight, and ensure the country receives the full value and foreign exchange from its gold exports.

Mr Gyamfi cited a SWISSAID analysis of UN Comtrade mirror data which found a 229-tonne gap, valued at approximately US$11.4 billion, between Ghana’s reported gold exports and the corresponding imports declared by its trading partners from 2019 to 2023.

According to him, this discrepancy or difference in records indicated how the country lost substantial volumes of gold without proper records citing its impact on Ghana’s foreign exchange system.

He also recalled that recorded small-scale gold exports fell from 75.7 tonnes in 2018 to 53.4 tonnes in 2019 and 39.3 tonnes in 2020.

Following the introduction of a three per cent withholding tax on unprocessed small-scale gold, official exports plunged to 3.4 tonnes in 2021, worth US$185 million.

“The gold beneath our soil had not disappeared, nor had production stopped; the trade had simply moved beyond official view,” Mr Gyamfi said.

Gyamfi said the problem stemmed from poor coordination among gold traders, gaps in regulatory supervision and weaknesses in systems for collecting gold and returning export earnings to Ghana. He said GoldBod’s reforms seek to improve oversight of the trade and ensure the country retains greater economic benefits from its gold resources.