Ghana’s newly established Ghana Gold Board (GOLDBOD) says it is targeting up to $12 billion annually in gold revenue starting next year, as it moves to double small-scale gold production and formalise artisanal mining operations across the country.

The ambitious projection, announced by the CEO of GOLDBOD, Sammy Gyamfi, follows a significant uptick in gold exports over the past year, largely fueled by output from small-scale and artisanal miners. Gyamfi said the regulator aims to increase its weekly gold purchases from 1.5 tonnes in January to over 3 tonnes by year-end.

“Our goal is to move above 3 tons a week in purchases,” Gyamfi stated in an interview with Bloomberg. “We expect to be able to bring in about $6 billion by the end of this year, but we are confident that we will reach the $12 billion in annual inflows from next year.”

The initiative comes as Ghana, Africa’s leading gold producer, seeks to bolster its foreign exchange reserves and clamp down on black-market trading, which has flourished in recent years due to weak regulation of the small-scale mining sector. The country is also grappling with the economic fallout from a sovereign debt default in 2022 and limited access to international credit markets.

Small-scale mining now contributes more than 40% of Ghana’s total gold output, up from the historical average of around one-third. According to preliminary estimates cited by GOLDBOD, gold exports surged by more than 50% in 2023 to hit $11.6 billion, with total national production reaching 151 tonnes. Of this, 66 tonnes came from the small-scale sector alone.

With global gold prices hovering near $3,300 per ounce after hitting multiple records in the past year, Ghana is banking on the commodity to drive economic recovery and reduce dependence on debt-driven financing. Gyamfi said that formalising small-scale operations and increasing official gold purchases will help the country retain more value and limit revenue losses through smuggling.

“The expected increase in earnings from small-mine output will have a positive impact on inflation and gross domestic product, and on the foreign component of our debt profile,” Gyamfi said.

GOLDBOD was established this year to regulate all aspects of gold trading in Ghana, including purchases from artisanal and small-scale miners, and is a central part of the government’s broader plan to tighten controls over the sector while boosting revenue.