The Fomer Minister for Lands and Natural Resources and Member of Parliament for Damongo Constituency, Samuel Abu Jinapor, has urged the Government to provide clarity on the proposed Gold Board.
He believes the concept raises more questions than answers and emphasized the need for transparency to maintain investor confidence in the mining sector.
The Gold Board is a key promise in the governing National Democratic Congress’ (NDC) manifesto for the mining sector. While it has been described as a top priority for economic revitalization, many industry players remain uncertain about its role and functions.
On January 27, 2025, the Finance Minister, Dr. Cassiel Ato Forson, inaugurated a technical committee to develop a framework for the Gold Board.
According to Dr. Forson, the Board is expected to regulate the gold industry, stabilize the cedi, and maximize revenue from gold exports.
President John Dramani Mahama also highlighted the Board’s role in ensuring effective governance of the gold industry during his maiden State of the Nation Address.
Despite these assurances, concerns persist regarding the Gold Board’s specific functions, especially since existing state institutions are already mandated to regulate the sector.
Mr. Jinapor, in an X post questioned the relevance of the Board, pointing out that agencies such as the Ministry of Lands and Natural Resources, the Minerals Commission, the Minerals Income Investment Fund (MIIF), and the Bank of Ghana currently oversee the management and utilization of the country’s gold resources.
He raised concern about how the new Board would coexist with these established institutions and whether it would assume the statutory functions of the Minister for Lands and Natural Resources in granting gold export licenses.
He also questioned its impact on the Bank of Ghana’s role in gold trade, especially following comments from the Bank’s Governor indicating that the Gold Board would take over the Domestic Gold Purchase Programme.
Another issue highlighted by Mr. Jinapor is the possibility of the Gold Board becoming solely responsible for purchasing and exporting gold, which could have significant consequences for private sector actors who have invested in gold trade.
He urged the Government to provide more details on the Gold Board’s structure and purpose, ensuring that it does not duplicate the functions of existing institutions.
While he acknowledged the importance of maximizing benefits from Ghana’s mineral resources, he stressed that any new measures should not undermine the country’s well-established mining regulatory framework, which is respected globally.
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THE GOLD BOARD – WHAT ‘CREATURE’ WILL THAT BE?
The country has followed various statements by Government Officials about the establishment of a Gold Board. H.E. the President of the Republic says this new ‘creature’ will “ensure effective governance of the gold industry,” and the Finance Minister has gone as far as constituting a technical committee to fashion out a framework for the establishment of this body.
Gold is Ghana’s leading precious mineral, and through dint of hard work by the Akufo-Addo administration, Ghana is today, by far, Africa’s leading producer of gold. Through numerous interventions including the innovative Gold4Oil Programme and the establishment of the Minerals Income Investment Fund (MIIF), Ghana has leveraged her gold resources for national economic growth.
The regulatory framework for our mineral resources in general, and gold in particular, is set out in several legislation, including, but not limited to, the Minerals and Mining Act, 2006 (Act 703) and the various Regulations made under it.
The Ministry of Lands and Natural Resources, the Minerals Commission, MIIF and Bank of Ghana are the principal agencies of state responsible for regulating the exploitation, management and utilisation of our gold resources, and proceeds therefrom.
So now, what will be the mandate of this proposed Gold Board?
How will it co-exist with the time-tested and cardinal institutions such as the Minerals Commission?
Will the Minister responsible for Lands and Natural Resources lose his/her statutory mandate to grant export licenses for gold export?
What will be the role of the Central Bank in this new Gold Board arrangement?
MIIF is responsible for receiving royalties and other revenue that accrue to the State from the exploitation of our minerals. What, then, will become of MIIF in the light of this new Gold Board?
The Governor of the Bank of Ghana has, today, Monday, March 3, 2025, suspended the Gold4Oil Programme, and there are speculations that it will be replaced with this new Gold Board. If so, what will be the contours of this arrangement?
The suggestion is that this new body will be responsible for the purchase and export of gold from our country. What then becomes of the numerous private sector actors who have invested heavily in the gold trade?
While it is welcoming to implement additional measures and/or interventions to have maximum benefit from our mineral resources, it is, also, important not to duplicate the mandate of institutions, which are already performing these functions.
I am afraid that there are so many questions than answers with regard to this Gold Board concept and the earlier the Government comes out to clarify what this ‘creature’ represents and seeks to do, the better for our mineral resource regulatory regime.
Ghana has come far with her mining regulatory regime and is highly respected across the globe and, therefore, nothing should be done in secrecy or surreptitiously to destroy her hard-won reputation in this consequential sector of our economy.
