A new report by economists from the University of Ghana and the University of Ghana Business School shows that the Ghana Gold Board (GoldBod) has significantly strengthened the country’s economy by formalising previously smuggled gold and boosting foreign exchange inflows.
The study highlights that artisanal and small-scale mining (ASM) gold exports rose from 63.6 tons in 2024 to 103 tons in 2025, with the additional 39.4 tons believed to represent gold that had previously been lost to smuggling.
Valued at US$96.5 million per ton, the formalised gold translates to about US$3.8 billion in FX, delivering a benefit–cost ratio of 18:1 compared with the Bank of Ghana’s reported US$214 million trading loss.
GoldBod’s activities also reduce the need for costly external borrowing. ASM exports in 2025 generated US$10.8 billion in foreign exchange, avoiding potential annual interest costs of US$756 million to US$1.08 billion at market rates. Even focusing solely on smuggling reduction, avoided costs range from US$266–380 million annually.
The report further notes broader macroeconomic benefits, including strengthened international reserves, exchange-rate stability, lower domestic costs of external debt, reduced import bills, and disinflationary effects.
It clarifies that the BoG “loss” is largely an accounting effect, not a cash deficit, as GoldBod purchases gold at near-retail rates while FX inflows are recorded at interbank rates.
Prof. Festus Ebo Turkson, one of the report’s authors, said, “GoldBod converts illicit gold flows into formal FX, strengthens Ghana’s external position, and supports macroeconomic stability. Evidence shows it is a high-return policy intervention for the economy.”
The report recommends sustaining GoldBod’s price competitiveness, improving transparency in BoG reporting, gradually reducing policy costs, and strengthening governance to maintain FX stability and support broader economic resilience.
