Ghana is considering alternative routes for exporting its gold as rising tensions in the Middle East threaten to disrupt flights to the United Arab Emirates (UAE), a key destination for the country’s bullion shipments.
Sources within the Ghana Gold Board (GoldBod), the state-backed agency responsible for purchasing and exporting gold from artisanal and small-scale miners, say contingency plans are already being prepared in case air travel to the UAE becomes restricted.
For years, the UAE has served as a major hub for Ghanaian gold exports. However, growing geopolitical instability in the region is raising concerns about potential disruptions to air transport and supply chains.
A senior GoldBod official, speaking on condition of anonymity because they were not authorised to speak publicly, said the agency has already identified alternative export routes outside the UAE, even though shipments have not yet been affected.
“There is always a market for gold,” the official said. “We have buyers who have been knocking on our doors for years, some even ready to pay a premium.”
Industry players warn that a potential no-fly zone in parts of the Middle East could significantly affect Ghana’s gold trade.
“A no-fly zone declaration would affect us big time. It would mean no trade and no foreign exchange inflows, and that could also weaken the local currency with wider economic consequences,” a source at a Ghanaian artisanal mining company told Reuters.
Traders familiar with the sector say alternative destinations may include gold refining and trading hubs in Asia, particularly in China and India. Cities such as Shanghai are being considered as possible new export points, although these routes could come with higher transportation and processing costs.
Efforts to formalise the gold trade
The discussions around alternative export routes come at a time when Ghana is intensifying efforts to formalise its gold sector and reduce illegal mining activities.
Authorities say rising global gold prices have increased incentives for illegal mining, which has been linked to serious environmental damage, including polluted rivers and threats to cocoa farms—one of Ghana’s most important agricultural industries.
To address the issue, the government earlier this year unveiled plans to channel approximately 127 metric tonnes of artisanal and small-scale mining (ASM) gold into formal supply chains each year.
Finance Minister Dr. Cassiel Ato Forson told Parliament that under the reforms, GoldBod will be required to purchase at least 2.45 metric tonnes of artisanal gold every week.
The strategy is designed to integrate small-scale miners into a structured and transparent export system that could generate more than $20 billion in annual inflows for the country.
Under the new framework, GoldBod will be solely responsible for negotiating off-take agreements and exporting gold purchased from artisanal miners. The agency also plans to maintain reserves equivalent to three to four weeks of gold purchases while using hedging and derivative tools to protect against volatility in global gold prices.
Authorities believe these measures will significantly increase the economic benefits Ghana derives from its artisanal mining sector.
In 2025, GoldBod’s chief executive projected that small-scale gold production alone could generate up to $12 billion annually if effectively regulated and channelled through formal export systems.
Official data shows that artisanal gold output rose by 63 percent last year to nearly 96 metric tonnes, accounting for about 52 percent of Ghana’s total gold production. At current market prices, that output is valued at roughly $15.8 billion.
Despite ongoing challenges in the sector, officials say the centralisation of gold trade through GoldBod and the surge in global gold prices are already helping to boost Ghana’s official production figures and foreign exchange earnings.
Source: norvanreport
