The Acting Managing Director of the Precious Minerals Marketing Company (PMMC), Sammy Gyamfi, has highlighted the key differences between the trading and regulation of gold and cocoa in Ghana, as he justifies the urgent need for the establishment of a Goldbod.

Speaking on JoyFM's Super Morning Show, Mr Gyamfi explained that, while both commodities are crucial to the country’s economy, they require distinct approaches when it comes to marketing, trading, and regulation.

"Gold is not the same as cocoa, and you cannot market, trade, and regulate the trade of gold in the exact same way as cocoa", he said when asked if the proposed Goldbod would operate along the lines of Cocobod.

Among other functions, Cocobod undertakes to;

• Initiate programmes aimed at controlling pests and diseases of cocoa, coffee and shea nut.
• Undertake and encourage the processing of cocoa, coffee, shea nut and cocoa waste with the aim of adding value for export and local consumption.
• Undertake, promote and encourage scientific research aimed at improving the quality of cocoa, coffee, shea nut and other tropical crops.
• Regulate the internal marketing of cocoa, coffee and shea nut. Secure the most favourable arrangements for the purchase, grading and sealing, certification, sale and export of cocoa, coffee and shea nut.
• Purchase, market and export cocoa and cocoa products produced in Ghana which is graded under the Cocoa Industry (Regulations) (Consolidation) Decree, 1968 NLCD 278, or any other enactment as suitable for export.
• Assist in the development of the cocoa, coffee and shea nut industries of Ghana.

According to Sammy Gyamfi, a key difference is how the prices of these commodities are managed, explaining that the government typically provides cocoa farmers with about 70 per cent, or sometimes less, of the international market price.

“You cannot do the same with gold; it is simply not possible,” he emphasised, stressing that the structure of the gold market doesn’t support such an arrangement.

Mr Gyamfi also discussed the contrasting roles of the boards overseeing the two industries. According to him, Cocobod undertakes projects, which justifies why cocoa farmers receive less than 70 per cent of the international market price.

"Cocobod provides significant support to the sector, which is why they can offer farmers less than 70 percent of the international market price," he explained.

In contrast, Mr Gyamfi noted that while the Goldbod offers support to small-scale miners, their involvement is not as extensive or financially demanding as Cocobod’s.

"We are not going to be as expansive or burdened by the same kinds of projects that Cocobod normally handles," he added.

Despite these differences, Mr Gyamfi acknowledged that there are still some similarities between the two sectors.

“While the Goldbod model is not exactly the same as the Cocobod model, there are still striking similarities,” he said, adding that both boards share the common goal of supporting local producers, but do so through different methods and levels of involvement.

When established, the Goldbod is expected to restructure the gold trading sector and optimise national benefits, particularly through the mobilisation of foreign exchange and the accumulation of gold reserves to strengthen the Ghana cedi and economy as a whole.