In a bold move to address illegal mining activities and strengthen the country\'s control over its natural resources, Ghana\'s President John Dramani Mahama has signed a law expelling foreign companies from the country’s gold market. The new policy, announced as part of the government’s broader strategy to tackle illegal mining, will have significant implications for the industry, shifting focus toward local control and increasing state revenue.

Ghana, one of Africa’s largest gold producers, has long faced challenges with illegal and unregulated mining, often referred to as “Galamsey.” These illegal activities have contributed to environmental degradation, deforestation, and the pollution of rivers with harmful chemicals like mercury and cyanide. Additionally, the informal mining sector has led to health hazards, unsafe working conditions, and loss of revenue for the state.

The new law is designed to curb these issues by restricting foreign involvement in small-scale mining operations. Local companies and individuals will now be encouraged to participate in the sector, with oversight from a newly established state-owned entity, Goldbod. This organization will manage small-scale mining operations, ensuring that all gold produced is purchased by the government and that exports are efficiently monitored. The government aims to regulate the mining process, reducing environmental harm while increasing the formal sector\'s contribution to the national economy.

As part of the new regulations, all gold transactions must now be conducted in Ghana\'s local currency, the cedi, further strengthening the country’s economic sovereignty and reducing reliance on foreign currency in the gold trade. This shift is expected to generate increased state revenue from the gold industry, which has long been a significant contributor to the country’s economy.

While the law is expected to improve control over the gold market and address environmental concerns, it has sparked debate among industry stakeholders. Critics argue that the policy could drive away foreign investment and hamper the development of the sector. However, the government maintains that the long-term benefits of a regulated and more sustainable gold market will outweigh any immediate economic challenges.

The law marks a significant turning point in Ghana\'s gold sector, placing greater responsibility in the hands of local actors and the state while combating the persistent issues of illegal mining.