The Ghanaian government’s ambitious plan to bolster its foreign exchange reserves with gold acquired from the small-scale mining sector has sparked both excitement and apprehension. While the Finance Minister celebrated the sector’s unprecedented surge in gold exports, surpassing even the large-scale mining industry for the first time, concerns are rising regarding the potential link between this growth and the pervasive issue of illegal mining, locally known as “galamsey.” The dramatic increase in small-scale gold exports, reaching 51.5 tonnes valued at US$5 billion in just the first half of 2025, represents a remarkable leap from the previous year’s figures. However, this achievement has been met with cautious optimism, as stakeholders fear that the rapid expansion could inadvertently exacerbate the already rampant illegal mining activities that plague the country.
The newly established Ghana Gold Board (GoldBod), responsible for overseeing the gold reserve initiative, has been thrust into the spotlight, facing mounting pressure to address critical questions surrounding certification, verification, and traceability of the gold being purchased. The core concern revolves around ensuring that the gold contributing to Ghana’s reserves is sourced responsibly and not tainted by illegal mining operations. Without robust mechanisms in place to verify the origins of the gold, experts warn that the government’s strategy could inadvertently incentivize illegal mining, undermining efforts to combat environmental degradation and protect the country’s natural resources.
The Natural Resource Governance Institute (NRGI) has been particularly vocal in demanding greater transparency from GoldBod. Denis Gyeyir, the Country Manager for NRGI, stressed the urgent need for GoldBod to clarify its verification processes and demonstrate how it ensures that the gold acquired for the reserves originates from legitimate sources. He cautioned that failing to establish clear procedures could have severe consequences, potentially leading to international scrutiny and damaging Ghana’s reputation in the future. The fear is that Ghana’s gold reserves, meant to bolster the cedi, could be built on the backs of environmental devastation and human suffering caused by illegal mining.
The key challenge lies in striking a balance between leveraging the economic potential of the small-scale mining sector and mitigating the risks associated with illegal mining. The government’s initiative to bolster its reserves with gold offers a significant opportunity to strengthen the national economy. However, if not implemented carefully, this strategy could inadvertently fuel the very problem it seeks to address. The stakes are high, as the consequences of inaction include not only environmental damage but also potential social and economic repercussions. The government must act decisively to establish a clear regulatory framework and transparent verification processes to ensure that the gold acquired for its reserves comes from responsible sources.
The call for transparency and accountability extends beyond GoldBod to encompass the entire small-scale mining sector. Stakeholders are demanding real-time audits, stricter regulations, and a public assurance that illegal mining will not be tolerated or indirectly legitimized in the pursuit of economic stability. The government must demonstrate its commitment to responsible resource management by implementing robust oversight mechanisms and enforcing existing laws. Failure to do so could not only undermine the credibility of the gold reserve initiative but also further entrench the devastating cycle of illegal mining.
The future of Ghana’s small-scale mining sector hangs in the balance. The government faces a critical juncture, where it must choose between prioritizing short-term economic gains or safeguarding the environment and the well-being of its citizens. The success of the gold reserve initiative depends on the government’s willingness to address the concerns raised by stakeholders and implement effective measures to combat illegal mining. Only through transparency, accountability, and a commitment to responsible resource management can Ghana ensure that its pursuit of economic stability does not come at the expense of its environment and its people. The international community will be watching closely as Ghana navigates this complex challenge.
