The Gold Board’s (GoldBod) Chief Executive Officer, Lawyer Sammy Gyamfi, has revealed that a 3% withholding tax imposed in 2021 under the leadership of Akufo Addo administration precipitated a drastic decline in small-scale gold production and foreign exchange inflows.
Addressing News File on Joy FM, Mr. Gyamfi stated that small-scale gold exports plummeted from 39.3 tonnes in 2020 to a mere 3.4 tonnes in 2021, resulting in billions of dollars in lost foreign exchange earnings.
“In 2021, the NPP introduced a 3% withholding tax on small-scale gold. Small-scale gold exports output declined sharply that year from 39.3 tons in 2020 worth 2 billion dollars to 3.4 tons. The whole year 2021 Ghana got 3.4 tons from small-scale sector because of 3% discount in the form of withholding tax. And FX inflows reduced from 2 billion dollars from 2020 to 185 million dollars,” he said.
According to Mr. Gyamfi, this stark decline underscores the sector’s vulnerability to fiscal policy decisions, emphasizing the imperative of prioritizing macroeconomic stability over short-term revenue gains.
He noted that lessons gleaned from the 2021 experience have informed the current strategic approach adopted by the Bank of Ghana and GoldBod, focusing on bolstering gold reserves and fortifying the cedi.
“So learning from this experience, the Bank of Ghana does not pursue its own accounting profits. Because the Bank of Ghana is a banker of last resort, it’s a banker of government, it is mandated to achieve price stability and support government’s economic policy. They are there to build reserves to ensure that your currency is strong and when you achieve that the benefits you get render any accounting loss infinitesimal,” he explained.
Mr. Gyamfi’s remarks come amidst heightened public scrutiny following allegations of GoldBod recording losses, which he dismissed as inaccurate, citing unaudited management accounts showing over GHS960 million in revenue and expenditure below GHS120 million for 2025.
By Lawrence Odoom/Phalonzy
