Gold Trade Laws in Ghana: Complete Seller’s Guide to Licensing, Export, and Compliance

Gold Trade Laws in Ghana, Ghana, known as the “Gold Coast,” is one of Africa’s leading gold-producing countries, offering vast opportunities for investors and traders. However, engaging in the gold trade in Ghana requires compliance with a structured legal framework set by the government to ensure transparency, prevent illegal mining, and protect stakeholders. Understanding these laws can be complex, but that’s where Gold Buyers Africa comes in. Whether you’re a first-time buyer or an experienced investor, our team is here to guide you through every step of the process from licensing and due diligence to secure transactions and export procedures. With our expertise, you can navigate Ghana’s gold trade legally, efficiently, and profitably.

Legal Framework for Gold Trade in Ghana

Ghana is one of Africa’s top gold-producing countries, and its gold trade is governed by strict regulations to ensure responsible mining, trading, and export. The legal framework for gold trade in Ghana is primarily established under the Minerals and Mining Act, 2006 (Act 703) and overseen by regulatory institutions such as the Minerals Commission (MinCom) and the Precious Minerals Marketing Company (PMMC). Gold Trade Laws in Ghana

Key Laws Governing Gold Trade in Ghana

1 a) Minerals and Mining Act, 2006 (Act 703)

The Minerals and Mining Act, 2006 (Act 703) is the primary law governing the gold trade in Ghana. It sets out:

• Licensing requirements for mining and gold trading.
• The rights and responsibilities of mining companies and traders.
• Regulations on gold exports and sales.
• Penalties for illegal gold trade and mining activities.

1. b) Minerals and Mining (Amendment) Act, 2019 (Act 995)

This amendment strengthened penalties for illegal gold trade and small-scale mining operations.

• Increased fines and jail terms for those engaged in unauthorized mining or gold trading.
• Stricter regulations on the sale and export of gold.

1. c) Precious Minerals Marketing Company (PMMC) Act, 1989 (PNDC Law 219)

The PMMC Act establishes the PMMC as the official body responsible for gold trading and export licensing, where the PMMC regulates and licenses gold buyers and exporters to ensure compliance with trade laws and prevent illegal gold exports. Gold Trade Laws in Ghana

1. d) Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865)

Foreign companies involved in gold trade must comply with the GIPC Act, which requires:

• Registration with the Ghana Investment Promotion Centre (GIPC).
• Meeting minimum capital requirements for foreign investors in the gold sector.

Key Regulatory Authorities

1. a) Minerals Commission (MinCom)

The Minerals Commission is responsible for regulating and overseeing gold mining and trading in Ghana.

• Issues licenses for gold trading, purchasing, and export.
• Ensures compliance with mining and trade laws.
• Enforces penalties for violations of gold trade laws.

1. b) Precious Minerals Marketing Company (PMMC)

• The PMMC is the official government agency for gold trade regulation.
• All licensed gold traders must register with the PMMC.
• It ensures legal gold exports by verifying and certifying gold transactions. Gold Trade Laws in Ghana

1. c) Bank of Ghana (BoG)

The Bank of Ghana monitors financial transactions in the gold trade to prevent money laundering and illegal financing.

• It ensures that gold traders comply with Anti-Money Laundering (AML) regulations.
• Approves repatriation of export proceeds for gold transactions.

 Licensing Requirements for Gold Trade

To legally trade gold in Ghana, individuals and companies must obtain the following licenses:

1. a) Gold Buying License

• Issued by the PMMC to individuals or companies that want to buy gold from small-scale miners.
• Requires applicants to register their business and provide proof of financial capability.

1. b) Gold Export License

• Issued by the PMMC or the Minerals Commission to licensed buyers who want to export gold.
• The license ensures that only legally sourced gold is exported. Gold Trade Laws in Ghana

1. c) Small-Scale Mining License

• Required for artisanal and small-scale miners (ASMs) who want to legally extract and sell gold.
• Issued by the Minerals Commission after meeting environmental and safety requirements.

Regulations on Gold Export from Ghana

To legally export gold from Ghana, traders must comply with the following.

1 Gold must be sold through PMMC or other government-licensed entities.

2 All exported gold must be properly documented with customs declarations and payment receipts.

3 Foreign gold traders must partner with Ghanaian businesses to obtain an export license.

4 Export proceeds must be repatriated through Ghanaian banks to comply with financial regulations. Gold Trade Laws in Ghana

 Penalties for Illegal Gold Trade

Engaging in the unauthorized gold trade in Ghana can lead to:

• Seizure of gold and equipment by regulatory authorities.
• Heavy fines ranging from GHS 30,000 to GHS 300,000.
• Imprisonment of up to 20 years for illegal gold mining and smuggling.

Foreign investment laws for gold trading in Ghana

Ghana’s legal framework for foreign investment in gold trading is primarily governed by the Minerals and Mining Law, 2006 (Act 703) and the Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865). These laws outline the requirements and regulations for foreign entities interested in participating in the country’s gold industry.

Minerals and Mining Law, 2006 (Act 703)

This law regulates mining activities in Ghana, including gold trading. It stipulates that mining companies must pay royalties and corporate taxes at standard rates. Additionally, companies are exempt from customs duties on equipment and machinery used for mining operations but are required to pay local property taxes on immovable properties. The government reserves the right to acquire a 10% free-carried interest in mining leases, and mining leases are granted for a period not exceeding 30 years, renewable once for up to an additional 30 years.

Ghana Investment Promotion Centre (GIPC) Act, 2013 (Act 865)

This act outlines the conditions under which foreign investors can participate in various sectors, including gold trading. Key provisions include:

• Joint Ventures: Foreign investors entering into a joint enterprise with a Ghanaian partner must invest a minimum of US$200,000 in cash or capital goods, with the Ghanaian partner holding at least a 10% equity stake.
• Wholly Foreign-Owned Enterprises: Foreign entities establishing a wholly-owned enterprise in Ghana are required to invest a minimum of US$500,000 in cash or capital goods relevant to the investment.
• Trading Enterprises: Foreign investors engaging solely in trading (buying and selling of imported goods and services) must invest at least US$1 million and employ a minimum of 20 skilled Ghanaians.Gold Trade Laws in Ghana

Due Diligence and Legal Representation.

Foreign entities are strongly advised to engage local legal representation before entering the gold trading business in Ghana. A qualified legal representative can conduct due diligence to verify local partners’ licensing and good standing, provide updates on regulatory changes, and oversee transactions to ensure compliance with Ghanaian laws. This includes drafting agreements and monitoring the export process to confirm that gold’s correct quantity and quality of gold are shipped to the intended recipient.

Recent Developments:

In January 2025, Ghana announced plans to establish a Gold Board aimed at streamlining gold purchases from small-scale miners, increasing earnings, and reducing smuggling. Set to launch in early March 2025, the Gold Board will act as the sole buyer of gold through licensed aggregators and local traders, replacing the fragmented system that previously existed. This initiative is expected to enhance the benefits Ghana derives from its gold resources and stabilize the national currency.

Foreign investors interested in gold trading in Ghana should stay informed about these regulatory changes and ensure full compliance with all legal requirements. Engaging experienced local legal counsel is essential to navigate the complexities of Ghana’s gold trading laws effectively.

Recent Developments in Ghana’s Gold Trade Regulations

• The government has introduced digitized licensing systems to improve transparency in the gold trade.
• Increased crackdowns on illegal mining (galamsey) to protect Ghana’s gold reserves.
• Strengthened collaboration with international bodies to prevent gold smuggling.

Regulatory Authorities Governing Gold Trade in Ghana

1 Minerals Commission: The primary body responsible for the regulation and management of mineral resources. It grants licenses and ensures compliance with mining laws.

2 Precious Minerals Marketing Company (PMMC): Established to oversee the trading of precious minerals, including gold. PMMC certifies the purity of gold and acts as a governmental gold buying agency.

3 Ghana Revenue Authority (GRA): This handles taxation aspects related to gold trading, ensuring appropriate duties and taxes are levied and collected. Gold Trade Laws in Ghana

Licensing Requirements for Gold Sellers

In Ghana, individuals or companies seeking to engage in the buying and selling of gold must obtain a license from the Precious Minerals Marketing Company (PMMC). The licensing process involves several steps to ensure compliance with Ghanaian laws and regulations.

Licensing Requirements.

                1 Business Registration: Applicants must register their business as either a sole proprietorship or a limited liability company with the Registrar General’s Department of Ghana. The business’s scope should explicitly include activities such as buying, selling, and exporting precious minerals.

2 Application Submission. Prospective gold dealers need to download and complete the application form available on the PMMC website. The completed form should be accompanied by

• A cover letter on the company’s letterhead, addressed to the Managing Director of PMMC.
• Copies of the company’s registration documents.
• Proof of the company’s physical location (e.g., a recent utility bill).
• Valid identification cards (Ghana Card) of directors and shareholders.
• Two passport-sized photographs of each director.

                3 Processing Fee. A non-refundable processing fee of GHS 500 is required upon submission of the application.

                4 Police Clearance. Applicants must obtain a Police Clearance Report from the Criminal Investigations Department (CID) Headquarters to ensure they have no criminal records.

                5 Foreign Participation. If the company includes non-Ghanaian shareholders, a certificate from the Ghana Investment Promotion Centre (GIPC) must be provided to support the application.

                6 Agents Accreditation. Applicants may nominate up to five agents or employees to be accredited to purchase gold from small-scale miners. This requires submitting two passport-sized photographs and copies of valid Ghanaian IDs for each agent. 

Application Process.

                1 Form Acquisition. Obtain the application form from the PMMC website or their head office. Gold Trade Laws in Ghana

2 Form Submission. Submit the completed form, along with all required documents and the processing fee to the PMMC head office.

3 Review and Verification. PMMC will review the application and conduct necessary verifications, including the police clearance.

4 Issuance of License. Upon satisfactory review, PMMC will issue the license, which is valid for one year from the date of issuance.

Fees:

• New Application: GHS 10,000
• Renewal: GHS 7,000

Renewal Process

License holders must apply for renewal at least one month before the expiration of the current license. The renewal is contingent upon.

• Submission of up-to-date returns on gold purchases.
• A satisfactory police clearance report.
• Proof of the company’s physical location.
• Payment of the renewal fee.

Failure to comply with the terms and conditions of the license, such as engaging in illegal transactions or exporting gold through unauthorized entities, can lead to suspension or cancellation of the license.

Gold Export Procedures and Requirements

1 Certification by PMMC: All gold intended for export must be assayed and certified by the PMMC to verify its purity and value.

2 Export License: Exporters need to secure an export license from the Minerals Commission, which involves meeting specific criteria and adhering to set guidelines.

3 Documentation: Essential documents include the Certificate of Origin, Assay Report from PMMC, Customs Declaration Form, and evidence of payment of applicable taxes and royalties.

4 Customs Clearance: The Ghana Revenue Authority oversees the customs process, ensuring all documentation is in order and that the gold is cleared for export. Gold Trade Laws in Ghana

Taxation and Royalties

1 Royalties. A standard royalty rate of 5% is levied on the gross value of gold mined. This is payable to the government and contributes to national revenue.

2 Corporate Tax. Mining companies are subject to a corporate tax rate of 35% as of the latest regulations.

3 Withholding Tax. Payments made to local suppliers and service providers may attract withholding taxes, which are deductible at the source.

Compliance and Legal Considerations

1 Environmental Regulations. Always ensure that all mining and trading activities comply with environmental standards to prevent degradation and promote sustainability.

2 Ethical Sourcing. Make sure that the gold you are sourcing is from legitimate and licensed miners to avoid involvement in illegal mining activities.

3 Maintain Accurate Records. Keep detailed records of all transactions, including purchases, sales, and exports, to facilitate audits and compliance checks.

4 Anti-Money Laundering (AML) Measures. Always implement robust AML protocols to detect and prevent illicit financial activities associated with gold trading.

Penalties for Non-Compliance

Non-adherence to Ghana’s gold trade laws can result in severe consequences:

1 Fines: Monetary penalties imposed for breaches of regulations.

2 License Revocation: Authorities may suspend or revoke licenses of entities found in violation.

3 Legal Prosecution: Serious offenses can lead to criminal charges, resulting in imprisonment or substantial fines.

Conclusion

The gold trade in Ghana offers profitable opportunities, but compliance with local laws is crucial for a smooth and secure business experience. Navigating licensing requirements, tax obligations, and export regulations can be challenging without the right support. Gold Buyers Africa ensures that you meet all legal requirements while maximizing your investment potential. Our team provides expert guidance, reliable sourcing, and end-to-end assistance, making your gold trade journey seamless and secure. Partner with us today and experience a hassle-free, legally compliant gold trading process in Ghana.