Ghana's Honey Set for EU. Gold Prices Increase & Banks Impose 5% FX Fee.

Ghana's economic landscape reveals a nation strategically positioning itself across multiple sectors - from agricultural exports and mineral resources to financial regulation. While global gold prices create new opportunities, domestic production challenges persist, even as the government works to unlock premium export markets for agricultural products.

Ghana Procures Advanced Testing Kits to Clear Honey for EU Market

The Ministry of Food and Agriculture (MoFA) is taking decisive steps to reclaim Ghana's position in the lucrative European Union honey market by procuring advanced equipment for residue deposit testing. This initiative addresses years of limited market access due to quality assurance concerns.

The move will enable 15 laboratory staff to be trained in advanced diagnostics, helping honey exporters meet stringent EU requirements. Professor Peter Kwapong, Director of the International Stingless Bee Centre, welcomed the intervention as "strategic" for enabling Ghana's re-entry into the premium EU market.

Although there's no outright ban, new EU regulations require honey-exporting establishments to be on an approved list by November 2024. Currently, Ghana produces approximately $168 million worth of honey annually; however, the Chamber of Agribusiness Ghana estimates that this could skyrocket to over $5 billion with improved quality controls and sustainable practices.

Gold Prices Soar, But Production Challenges Persist - Chamber of Mines

Ghana's mining sector is experiencing a paradox: while global gold prices reach record highs, production struggles continue to weigh on the industry. According to Ghana Chamber of Mines President Michael Edem Akafia, high prices are quickly factored into input costs, leaving companies with smaller-than-expected margins.

"When the gold price goes up, that may require you to mine some of your marginal areas at high cost," Akafia explained. "So your margin is not as high as everybody expects it to be."

Large-scale production has stagnated at 2.9 million ounces despite a surge in small-scale output from 1.1 million to 1.9 million ounces. Akafia highlighted the limited pipeline of new exploration projects as a warning sign for the sector's future, emphasising that Ghana faces strong competition from other mining jurisdictions.

Despite these challenges, the sector remains crucial to Ghana's economy, particularly through its collaboration with the government on the gold purchase program that has significantly supported currency stability.

Commercial Banks Enforce 5% Fee on Foreign Exchange Withdrawals.

Commercial banks in Ghana have begun implementing a 5% fee on foreign exchange withdrawals from accounts funded through transfers or cheque deposits, following new Bank of Ghana guidelines.

Accounts credited with cash deposits remain exempt from this levy.

The measure is part of broader anti-money laundering efforts and is designed to tighten oversight of forex flows, discourage speculative withdrawals, and encourage cash-based deposits. Under the new rules, banks must submit utilisation reports for every foreign currency withdrawal not funded with physical cash, detailing the purpose and use of the funds.

The Importers and Exporters Association of Ghana has advised members to use credit and Visa cards when travelling rather than carrying large sums of cash, to avoid violating the central bank's revised thresholds of $10,000 for inbound and $50,000 for outbound travellers.

Investor's Insight – Ghana Stock Exchange: GCB Leads Gainers with 9.98% Surge

The Ghana Stock Exchange showed strong performance, with GCB Bank leading the gainers with an impressive 9.98% increase. Other notable performers included AADS (+2.44%) and GOIL (+0.87%), while GLD declined by 1.94%. This performance reflects ongoing investor confidence in Ghana's financial sector despite broader economic challenges.

This week's developments highlight Ghana's multi-faceted approach to economic management. The honey sector initiative demonstrates strategic thinking about export diversification and quality upgrading, while the gold industry's situation shows the complex realities behind commodity price booms. The new FX regulations represent a careful balancing act between facilitating legitimate transactions and preventing illicit financial flows.

For investors, these developments signal a maturing regulatory environment and growing emphasis on quality standards across sectors. The strong performance of banking stocks suggests confidence in the financial sector's adaptability to new regulatory requirements, while the commodity sectors continue to offer opportunities despite their challenges.

Stay tuned to the Cedi Board® for real-time updates on Ghana's financial pulse. From prices and policy to investment tips that help you make sense of the numbers.