Ghana’s GoldBod Plans Backup Export Routes as Dubai Flight Disruptions Threaten Artisanal Gold Trade
Ghana’s state-run artisanal gold exporter, GoldBod, is preparing to shift shipments to alternative refining hubs if flight disruptions to the United Arab Emirates (UAE) continue, two sources familiar with the matter said. The move highlights Africa’s dependence on Dubai amid heightened Middle East tensions.
Dubai, a major global gold trading hub supplying Switzerland, Hong Kong, and India, has experienced a seven-day disruption of physical gold flows after the US Israeli attack on Iran triggered regional instability and grounded much of the city’s air traffic.
For Ghana the largest gold producer in Africa and the world’s sixth-largest Dubai normally refines around 80% of output from its artisanal and small-scale mining (ASM) sector.
GoldBod, the sole official buyer and exporter of Ghana’s ASM gold since its creation last year, has already drafted contingency export routes outside the UAE, although no direct impact has yet been reported, a senior GoldBod official said, declining to disclose the alternative destinations.
Potential refining alternatives include Shanghai and major refining hubs in India, though these options would increase costs, according to gold traders and precious metals analysts.
Record Production and Contingency Plans
High bullion prices and the centralisation of trade through GoldBod helped Ghana’s official ASM production grow 63% last year, reaching 96 metric tons of gold worth $15.8 billion, accounting for 52% of the country’s total gold output.
“The market for gold is always strong. We have buyers lined up, some willing to pay a premium,” the GoldBod official said, speaking anonymously.
Gold is typically transported by air due to its high value-to-weight ratio, but with Dubai airport operating at only 25% of normal capacity, priority is being given to passengers and essential cargo like pharmaceuticals.
Analyst Rhona O’Connell of StoneX noted, “When flights do resume, early shipments are likely to carry perishable goods rather than high-value commodities like gold.”
If Middle East tensions persist, GoldBod’s contingency measures will be crucial to minimise economic knock-on effects for Ghana and other African countries.
A Ghanaian ASM miner said anonymously: “A no-fly zone would affect trade and foreign exchange, with potential consequences for the local currency.”
Tackling Illicit Gold Flows
Artisanal and small-scale mining supplies roughly 20% of global gold and supports millions of miners. However, much of Africa’s artisanal gold has historically flowed illicitly to Dubai, posing challenges for traceability and compliance.
Since its creation, GoldBod has sought to channel ASM gold into formal supply chains. Rising gold prices, however, continue to fuel informal mining, which can harm rivers and threaten cocoa farms.
The current disruption in Dubai creates opportunities to curb illicit gold flows. Ruth Crowell, CEO of the London Bullion Market Association (LBMA), said:
“While the situation in the Middle East is tragic, it also provides a chance to disrupt illicit flows that have long destabilized parts of Africa.”
Ghana’s ASM sector is now among the most regulated in the region. GoldBod aims to channel 127 tons of ASM gold into formal export routes, with support from partnerships such as the one between Rand Refinery, Africa’s largest, and a Ghanaian refinery to ensure responsible local processing.
Crowell added that the disruption may prompt responsible market participants across Africa to reassess supply chains and make informed decisions about sourcing and refining gold.
This period could accelerate Ghana’s efforts to strengthen formal export channels, improve traceability, and limit the influence of illicit gold trade on regional stability.
