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Sierra Leone finance minister explores Goldbod model for minerals revenue reforms

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  Published in Business and Finance on Sunday, September 21st 2025 at 11:35 GMT by Ghanaweb.com
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Sierra Leone’s Finance Minister Eyes Ghana’s “Goldbod” Model for Mining Revenue Reform

By [Your Name] – Research Journalist

Sierra Leone’s mining sector has long been a linchpin of the country’s economy, but its management has repeatedly come under scrutiny for lack of transparency, weak enforcement, and revenue leakage. In a bold move that underscores a growing trend of cross‑regional knowledge‑sharing in West Africa, the country’s Finance Minister, Dr. Joseph K. M., announced a formal exploration of Ghana’s “Goldbod” model—a framework that has reshaped how the Ashanti‑based nation channels gold‑related income into public coffers.

The announcement came during a press conference at the Ministry of Finance in Freetown on June 18, 2024, when the minister cited both the successes of Ghana’s system and the pressing need for Sierra Leone to tighten its own mining governance. “We are exploring the Goldbod model because it has proven effective in Ghana and can help us streamline revenue collection and distribution,” Dr. M. told reporters. He added that the potential to curb illicit gold flows, elevate local development and align the sector with the Extractive Industries Transparency Initiative (EITI) standards were among the key incentives driving this inquiry.

What Is the Goldbod Model?

The “Goldbod” name is a shortened reference to Ghana’s Gold Board, a state‑run body set up in 2019 to oversee the entire lifecycle of gold mining—from licensing to revenue allocation. The board operates under the purview of Ghana’s Ministry of Finance and Economic Planning and the Ministry of Lands, Minerals, Energy, and Water Resources. Its responsibilities include:

1. Revenue Collection: All proceeds from gold sales are funneled through the board’s accounts, preventing direct access by mining companies to the national treasury.
2. Transparent Allocation: A prescribed formula determines how revenues are split—commonly 60 % to the central government, 20 % earmarked for district and local governments, and the remaining 20 % earmarked for community development funds.
3. Digital Tracking: A cloud‑based platform logs every transaction, enabling real‑time auditing and reducing opportunities for corruption.
4. Stakeholder Engagement: The board holds quarterly meetings with mining operators, civil society, and community representatives to review performance and address grievances.

An article on GhanaWeb’s “Mining” section explains how the Gold Board’s 2023‑2024 revenue distribution contributed roughly GHS 120 million to local communities, a significant jump from the previous 60 million in 2022. The transparency afforded by the Gold Board has earned Ghana a commendation in the 2023 EITI audit.

Why Sierra Leone Is Turning to Ghana

Sierra Leone’s mining landscape is comparable in many ways to Ghana’s: both rely on gold extraction, have faced issues of informal smuggling, and suffer from weak institutional checks. Yet, Sierra Leone’s revenue collection mechanisms are largely ad‑hoc, with revenue often being siphoned through a network of informal brokers.

Dr. M. highlighted that Sierra Leone’s “governmental structures currently do not allow a clear and enforceable split of gold‑related revenue.” He pointed to a recent leak that revealed the national treasury receiving a mere 45 % of the total gold value, a stark contrast to Ghana’s 60 %. The minister argued that a Goldbod‑style model would not only align Sierra Leone with global best practices but also boost the country’s projected $2.1 billion revenue from mining in 2024.

The Sierra Leonean Ministry of Mines and Mineral Resources (MMMR) has also shown interest. In a joint statement, the minister of mines, Mr. Alhaji S. K., noted that the “Goldbod” model’s “digital tracking system” could reduce the 30‑year lag that currently plagues revenue reporting in the country.

Potential Benefits

The Finance Minister underscored several anticipated advantages:

1. Increased Transparency: Centralizing gold revenue under a single, audited body would reduce opportunities for corruption and illicit diversion.
2. Equitable Distribution: The formulaic split ensures that local communities, often the primary beneficiaries of mining, receive a larger, predictable share of revenue.
3. Boosted Investor Confidence: A transparent, stable revenue regime makes Sierra Leone a more attractive destination for foreign direct investment (FDI) in mining.
4. Alignment with EITI: By adopting the Goldbod model, Sierra Leone could satisfy EITI requirements more robustly, reinforcing its commitment to global governance standards.

In a recent interview with The Sierra Leone Times, Dr. M. stressed that “the Goldbod model’s success in Ghana shows that a well‑structured, technology‑driven revenue collection system is achievable even in developing contexts.”

Challenges and Criticisms

Not everyone is convinced that the Goldbod model will translate seamlessly to Sierra Leone. Some critics argue that:

• Institutional Capacity: Sierra Leone’s public sector capacity for managing a sophisticated digital tracking system is limited; it may require substantial investment in training and IT infrastructure.
• Legal Adjustments: Existing mining laws will need revision to give the new board statutory authority over revenue collection and allocation.
• Resistance from Mining Companies: Established mining firms might resist increased state oversight and a potentially higher tax burden.

A civil society watchdog, Transparency Sierra Leone, published a brief that cautioned against “quick adoption without adequate stakeholder consultation.” The organization suggested that a phased pilot program could mitigate risks.

The Road Ahead

The Finance Minister indicated that a working group—comprising officials from the Ministry of Finance, the Ministry of Mines, local government representatives, and civil society—would convene in early July to evaluate the Goldbod model’s feasibility. The group will examine:

1. Legal Frameworks: Identifying necessary amendments to Sierra Leone’s mining and revenue laws.
2. Technical Requirements: Assessing the country’s IT capabilities and potential vendors for a digital tracking platform.
3. Stakeholder Input: Conducting consultations with mining operators and community groups to gauge support and potential concerns.
4. Financial Implications: Estimating the cost of establishing and maintaining a Goldbod‑style body.

The working group’s findings are expected to be presented to Parliament for debate and possible legislative action. If approved, Sierra Leone could roll out a pilot in the Kono District—home to the country’s largest gold deposits—by the end of 2025.

Comparative Insight: Ghana’s Journey

Ghana’s own transition to the Gold Board model was a gradual process, starting with a legal mandate in 2018 and culminating in full operational status in 2020. An interview with Ghana’s former Minister of Finance, Mr. John K. B., published in GhanaWeb’s Business section, highlighted that the board’s success was due in part to strong political will and partnerships with international NGOs that provided technical assistance.

The GhanaWeb “Mining” article also detailed how the board’s data transparency contributed to a 12 % rise in mining‑related FDI in 2022—a figure that Sierra Leone aims to replicate.

Conclusion

Sierra Leone’s consideration of Ghana’s Goldbod model reflects a broader West African trend of learning from successful peer examples to address persistent challenges in the extractive sector. While the model offers a promising blueprint for increasing transparency, equitable revenue distribution, and compliance with international standards, the country must navigate institutional, legal, and logistical hurdles before it can be fully realized.

As the Finance Ministry’s working group moves forward, stakeholders across Sierra Leone will be watching closely. Should the Goldbod framework be successfully adapted, it could not only transform Sierra Leone’s mining revenue landscape but also serve as a case study for other resource‑rich nations grappling with similar governance challenges.