Sammy Gyamfi, Chief Executive Officer of the Ghana Gold Board (GoldBod), has revealed that the introduction of a 3% withholding tax in 2021 significantly impacted small-scale gold production and foreign exchange inflows into the country.
Speaking on News File on Joy FM on January 3, 2026, Gyamfi stated that the tax led to a drastic decline in small-scale gold exports, which fell from 39.3 tonnes in 2020 to just 3.4 tonnes in 2021. This sharp drop resulted in Ghana losing billions of dollars in potential foreign exchange earnings.
“In 2021, the NPP government introduced a 3% withholding tax on small-scale gold, which caused small-scale gold exports to collapse. The output decreased from 39.3 tonnes in 2020, valued at $2 billion, to just 3.4 tonnes. In total, Ghana received only 3.4 tonnes in 2021 due to this tax, and foreign exchange inflows fell from $2 billion in 2020 to just $185 million,” Gyamfi explained.
He pointed out that this steep decline highlighted the vulnerability of the small-scale mining sector to fiscal policy changes and reinforced the importance of maintaining macroeconomic stability, rather than focusing on short-term accounting profits.
Gyamfi also noted that lessons learned from 2021 have influenced the current approach by the Bank of Ghana and GoldBod. This includes prioritizing the building of gold reserves and strengthening the cedi, rather than focusing on immediate financial returns.
“From this experience, the Bank of Ghana has shifted its focus from pursuing its own accounting profits. As the central bank and the government’s banker, its mandate is to ensure price stability and support economic policy. The goal is to build reserves to ensure currency strength, and the benefits of this approach far outweigh any short-term accounting losses,” Gyamfi stated.
These comments come amid public debate regarding reports that GoldBod has incurred losses. Gyamfi dismissed the reported $214 million loss, asserting that GoldBod, while not a profit-making entity, has not suffered any financial losses. He highlighted that the management accounts for 2025 show that GoldBod generated over GH₵960 million in revenue, with expenditures kept under GH₵120 million. This puts the institution on track to declare a surplus.
Gyamfi concluded that the reforms in Ghana’s gold trading sector are being shaped by hard lessons from past policy mistakes, especially those that harmed small-scale miners and weakened the country’s foreign exchange position.
Source: citinewsroom
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