Africa’s biggest gold producer tightens grip on bullion with new 30% state buying rule

Africa’s biggest gold producer is moving to keep more of its bullion at home instead of allowing it to flow directly into international markets, as Ghana expands state purchases in a strategy aimed at rebuilding foreign reserves, strengthening its currency and capturing more value from one of its most important exports.

• Ghana will require large-scale mining companies to sell 30% of their gold output to the state from July 1.
• The policy is designed to strengthen foreign reserves, support the cedi and expand domestic gold refining.
• It comes as central banks worldwide continue to increase gold holdings amid economic and geopolitical uncertainty.
• The move also reflects a broader push by African resource-rich countries to capture more value from their mineral wealth.

Beginning July 1, large-scale mining companies operating in Ghana will be required to sell 30% of their gold output to the state-owned Ghana Gold Board (GoldBod), up from the previous 20% requirement.

The agreement, reached through the Ghana Chamber of Mines, was announced on Thursday and covers gold supplied in doré form, semi-refined bars produced before final refining.

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The revised arrangement forms part of Ghana’s broader effort to build a stronger financial buffer after years of economic turbulence, while positioning the country to play a bigger role in the global bullion value chain rather than remaining primarily an exporter of raw gold.

Gold has become an increasingly important reserve asset for central banks around the world. Record bullion prices, persistent geopolitical tensions and efforts by many countries to diversify reserve assets have driven central banks to accumulate gold at one of the fastest rates in decades.

For Ghana, whose economy has undergone debt restructuring in recent years, larger gold reserves also provide an additional safeguard against external shocks, improve confidence in the country’s reserve position and offer another source of foreign currency when needed.

The Bank of Ghana began purchasing domestically produced gold in 2022 as part of a reserve diversification programme.

Since then, official holdings have increased to 19.2 metric tonnes, and authorities are now targeting as much as 157 metric tonnes, equivalent to roughly 15 months of import cover, by 2028 under the Ghana Accelerated National Reserve Accumulation Programme.

Under the new agreement, GoldBod will purchase gold at a 0.55% discount to the Bank of Ghana’s reference price, with payments made in Ghanaian cedis.

Beyond boosting reserves, the policy is intended to accelerate Ghana’s ambition to develop a domestic gold refining industry.

Rather than exporting most bullion in semi-processed form, the government wants more gold refined locally before being sent to a London Bullion Market Association (LBMA)-accredited refinery for final certification.

Officials are targeting LBMA accreditation for at least one refinery by 2030, a milestone that would help Ghana retain more value from its gold industry and strengthen its position as a regional refining and bullion trading hub.

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The agreement follows months of negotiations between the government and major mining companies, including Newmont, Gold Fields and Zijin Mining, after authorities proposed increasing mandatory sales from 20% to 30% to accelerate reserve accumulation.

The move also builds on wider reforms introduced this year through GoldBod, the state agency established to centralise gold purchasing, formalise the trade, improve traceability and reduce gold smuggling.

GoldBod already purchases the entire output of Ghana’s licensed artisanal and small-scale mining sector, making the inclusion of large-scale miners a significant expansion of its mandate.

The country produced a record six million ounces of gold in 2025, reinforcing its position as Africa’s largest producer. Gold remains the backbone of Ghana’s export economy, accounting for about 40% of export earnings and providing one of the country’s largest sources of foreign exchange.

Despite that dominance, much of Ghana’s gold has historically been exported before higher-value refining and certification could take place domestically. That is what the government now wants to change.

By increasing state purchases, expanding local refining and building larger bullion reserves, Ghana is seeking greater control over the value generated by its gold industry while reducing its vulnerability to external financial shocks.

From critical minerals to gold and lithium, governments are increasingly demanding that more processing, refining and value addition take place within their borders instead of exporting raw commodities.

The objective is not only to earn more from natural resources but also to build stronger domestic industries, create skilled jobs and reduce dependence on volatile external markets.

If successful, Ghana’s latest initiative could strengthen its position not only as Africa’s biggest gold producer but also as one of the continent’s leading centres for bullion refining, reserve accumulation and gold trading.