Ghana: John Dramani Mahama tackles gold mining reform with Goldbod

Ghanaian President John Dramani Mahama, recently re-elected, has launched an ambitious initiative to restructure the gold mining sector, an economic pillar often marked by illegality and environmental challenges. The Head of State has created the Goldbod, a new structure tasked with reorganising the gold industry, with a particular focus on small-scale mining. Headed by Sammy Gyamfi, head of communications for the National Democratic Congress (NDC), this organisation aims to introduce more transparent and sustainable management, but it is already facing questions over its funding and prerogatives.

Ghana, Africa's second largest gold producer, derives a significant proportion of its revenue from gold mining, in particular from small-scale artisanal mines that employ thousands of people. However, illegal gold panning, known locally as "Galamsey", has given rise to major problems: deforestation, mercury pollution of rivers and social conflict. Mahama, who had already attempted to regulate the sector during his first term (2012-2017), seems determined to make gold panning reform a priority for his new five-year term.

The Goldbod, created shortly after Mahama's inauguration in January 2025, is tasked with structuring the industry by supervising the activities of artisanal miners and promoting local gold processing. The aim is twofold: to maximise the economic benefits for the country and limit the environmental impact. But right from the start, the organisation came up against obstacles. Funding issues, crucial to supporting small mines in their transition to sustainable practices, remain unresolved. In addition, there are uncertainties surrounding the Goldbod's prerogatives, particularly in terms of local refining, an area in which Ghana is chronically lagging behind.

Sammy Gyamfi, an influential figure in the NDC and close to Mahama, has been appointed head of the Goldbod to steer this reform. However, observers are questioning the capacity of this structure to impose itself in the face of illegal gold-mining networks, which are often backed by powerful players. Previous attempts at regulation, including under Mahama, have been hampered by a lack of resources and political will to tackle the root causes of the problem, such as corruption and the absence of economic alternatives for miners.

Mahama, who built part of his campaign on the promise of a more inclusive economy, is banking on the Goldbod to restore the image of Ghana's gold sector. But the task looks daunting in a context where high gold prices are attracting ever more illegal gold miners, and where local communities, dependent on this activity, fear indiscriminate repression.

This initiative comes at a time when other West African countries, such as Mali and Burkina Faso, are also stepping up their efforts to provide a better framework for gold panning. Ghana, with its historic expertise in gold mining, could position itself as a regional leader in sustainable practices, provided it meets the financial and logistical challenges of the Goldbod. In addition, international pressure for ethical and environmentally-friendly supply chains - particularly from the European Union - could force the government to speed up its reforms.

With the Goldbod, John Dramani Mahama is playing a major card in transforming a vital but controversial sector. The success of this reform will depend on his ability to mobilise funds, involve local communities and break up illegal networks, while avoiding the pitfalls that have held back past initiatives.