Accra: The story of gold in Ghana, once celebrated as the 'Gold Coast', is one marked by missed opportunities, a situation attributed to a lack of imaginative policy-making. Historically, Ghana was a significant player in the global gold market, supplying 60% of the world's gold during the Mediaeval era. By the Renaissance, its contribution had decreased to around 10%, and in the modern era, it has fallen to less than 3%, although record-high prices are causing a slight resurgence.
According to Ghana Web, despite gold's status as a special commodity, Ghana faces challenges similar to other African countries in terms of value addition, a concept that remains misunderstood in the region. The advocacy by the school of katanomics suggests that sustainable progress relies not just on vision and ambition but on detailed and enduring policy. Ghana's efforts to establish bullion refineries since the 1st Republic have not translated into significant economic benefits, often yielding only a 4% markup from refining.
The real opportunity lies in 'value transformation', particularly in jewelry, which requires strong brand equity. This transformation demands more than just branding; it requires the integration of a comprehensive knowledge-ecosystem. High-value products like Swiss watches exemplify this approach, where gold contributes only a small portion to their value. Ghana's recent attempt to revitalize its jewelry sector through the rebranding of PMMC Jewelry to GoldBod Jewelry indicates a commitment to this ancient strategy, yet substantial improvements in policy are necessary.
Despite exporting between 2500 and 4000 kilograms of raw gold monthly, Ghana's state-owned jeweler struggles to secure even 2 kilograms for crafting. This has led to periods of inactivity among the 74-person workforce. The country could learn from the Philippines' public-private partnership model, which enhances jewelry output by focusing state efforts on knowledge and capacity building, while the private sector handles brand development and marketing.
Currently, GoldBod competes with the private sector while also being responsible for licensing, having licensed less than 10% of the sector. Yet, private companies like Morgan Touch are leading in brand development. Overcoming Ghana's longstanding challenges in the gold sector requires innovative and critical thinking to break free from the existing limitations in policy and imagination.