The acting Managing Director of the Precious Minerals Marketing Company (PMMC), Sammy Gyamfi, stated that under the proposed GoldBod framework, only one state-backed entity will be authorized to export gold from Ghana. Speaking on JoyNews PM Express on Tuesday, March 25, Mr. Gyamfi explained that the unregulated nature of gold exports in Ghana has resulted in significant foreign exchange losses, which have contributed to the depreciation of the Cedi.
“The unstructured, unregulated system led to a situation where we were not getting the forex we are supposed to get as a nation, from the gold we export from Ghana,” he stated. According to him, multiple exporters, including private firms licensed by the Ministry of Lands and Natural Resources, compete with institutions like the Precious Minerals Marketing Company and the Bank of Ghana.
He stated that this situation has led many exporters to either shut down their businesses or turn to smuggling due to unfavorable market conditions. “If a person wants to export legally, they end up losing money completely. As a result, many of these individuals, particularly foreign exporters, resort to smuggling. When they engage in smuggling, the state loses out on foreign exchange,” he added. Mr. Gyamfi noted that the smuggling of gold has exacerbated Ghana’s foreign exchange crisis, making it increasingly difficult for businesses to access US dollars. This, in turn, drives up the cost of imports and contributes to rising inflation.
To address this, he explained that the GoldBod initiative will centralise all gold exports under one entity, ensuring that forex earnings from gold sales are immediately repatriated to stabilise the Cedi. “So under the GoldBod, no one can export gold except the GoldBod, and once we are the ones exporting, all the dollars will come back,” he stated.
The PMMC acting Managing Director noted that under the current system, private exporters are required to repatriate only 80 per cent of their forex earnings within 30 days, but many do not comply. This, he stated that the GoldBod will ensure that once gold is exported, 90 per cent of the earnings will be credited to the Bank of Ghana the same day, with the remaining balance arriving within 48 hours.
“When you have GoldBod, you buy the gold, you export the gold. When you export the gold that same day, you get 90% of the dollars in the country. It’s in your account at the Bank of Ghana. “So we don’t have to wait for 30 days for an exporter, a private person, to bring us dollars. Because it is GoldBod, once we export that same day, we get 90 to 95% of the dollars, and within 48 hours, the remainder of the dollars come,” Mr. Gyamfi assured.
By: Prince Adu-Owusu
