News Guide Africa

Category: Economy and Finance

  • GRA moves to resolve Ghana.gov tax payment disruptions

    GRA moves to resolve Ghana.gov tax payment disruptions

    The Ghana Revenue Authority (GRA) has moved to address intermittent technical challenges affecting the payment of taxes through the Ghana.gov payment platform, assuring taxpayers and other stakeholders that efforts are underway to restore normal services.

     

    The disruption, which began on Friday, August 14, 2026, has affected payment transactions initiated through the Integrated Customs Management System (ICUMS), Integrated Tax Administration System (ITAS), and Ghana Integrated Tax Management and Information System (GITMIS).

     

    In a press release issued on August 20, the GRA said the technical difficulties were being resolved and stressed that the problem was limited to payment processing.

     

    “The intermittent technical challenges affecting payment of taxes through the Ghana.gov payment platform are being resolved,” the Authority said.

    The GRA explained that while the payment platform remains operational, some transactions may experience delays before payments are processed or reflected on taxpayers’ respective online portals.

     

    Tax filing unaffected

     

    The Authority was quick to distinguish the payment disruption from tax filing, reassuring taxpayers that the filing of tax returns has not been affected.

    “The technical challenge relates specifically to payment processing and does not affect the filing of tax returns,” the GRA stated.

     

    This clarification is expected to provide relief to taxpayers, importers, clearing agents and businesses that continue to use the affected systems for their statutory tax obligations.

     

    According to the Authority, taxpayers may still encounter situations where completed payment transactions do not immediately appear on their portals because of delays within the payment-processing system.

    Technical interventions underway

    The GRA said it is working with relevant technical partners to resolve the problem, with technical interventions already underway.

     

    “The matter is being treated with the highest priority,” the Authority said, adding that outstanding payment transactions would be processed and reflected on taxpayers’ portals once the system is fully normalised.

     

    The assurance comes at a time when businesses and importers rely heavily on digital government platforms to complete tax and customs-related transactions, making the uninterrupted operation of electronic payment systems critical to commercial activity.

     

    The GRA further assured stakeholders that measures were being implemented to address affected transactions and minimise additional disruptions.

    “All necessary measures are being taken to address affected transactions and minimize further disruptions,” the Authority said.

     

    GRA appeals for patience

     

    The Authority appealed to taxpayers and other stakeholders for patience and understanding while technical teams work to restore full functionality.

     

    “The GRA regrets any inconvenience caused and appreciates the patience and understanding of taxpayers and stakeholders,” the statement said.

    The Revenue Authority also indicated that it would provide further information as necessary as efforts to resolve the technical challenge continue.

     

    For taxpayers whose payments have been delayed or have not yet appeared on their portals, the GRA’s position is that affected transactions will be processed and duly reflected once normal payment processing has been restored.

     

    The development underscores the growing importance of reliable digital infrastructure to Ghana’s tax administration system, particularly as the country continues to rely on integrated electronic platforms for tax filing, customs administration and payment processing.

     

    The statement was issued by the GRA’s Communication and Public Affairs Department on August 20, 2026.

     

     

  • Industry Leaders Demand Policy Overhaul to End Foreign Monopoly on Ghana’s Mineral Wealth

    Industry Leaders Demand Policy Overhaul to End Foreign Monopoly on Ghana’s Mineral Wealth

    Foreign mining conglomerates are facing unprecedented pressure in Ghana as top industry figures and state regulators demand a radical overhaul of the nation’s extractive sector, warning that decades of foreign control have drained the country of vital resource revenues.

    At the National Mining Dialogue in Accra, stakeholders warned that despite Ghana being one of Africa’s top gold producers, the vast majority of profits are shipped overseas through foreign equity, off-shore financing, and imported equipment.

    Delivering a sharp rebuke of the traditional mining framework, Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, argued that national extraction records mean nothing if local communities remain impoverished while external firms extract raw wealth.

    “The large-scale mining sector has been largely foreign-led, and too much of the value has leaked out of the country through ownership structures, financing arrangements, imported inputs, offshore services, limited beneficiation, and weak local industrial linkages,” Gyamfi said. “Production without ownership is limited. Production without value addition is leakage. Production without community transformation is a broken social contract.”

     

    Gyamfi pointed to major mining hubs such as Obuasi, where generations of foreign-led extraction have left behind minimal infrastructure and limited economic opportunities for young residents. He called for a shift toward domestic mine financing, local refining, and mandated local shareholding to halt capital flight.

    “If we want a new story, we must own more, refine more, process more, fabricate more, and retain more,” Gyamfi added. “We must promote more indigenous ownership of mines. We must support Ghanaian capital to participate meaningfully in exploration, mine development, mining services, and value addition.”

     

    State regulators aligned with the critique, emphasizing that relying on foreign corporations for local jobs is an inadequate metric for true economic development.

    “Our people are working in the mines, agreed, but do they own the mines?” asked Isaac Tandoh, Chief Executive Officer of the Minerals Commission. “The true wealth of a mining nation is not measured only by the minerals it exports. It is measured by the industries it builds, the businesses it grows, the technologies it develops, the skilled workforce it produces, and the opportunities it creates for future generations.”

     

    The push to dismantle external dominance comes as the government considers tighter domestic procurement mandates, expanded equity access for local investors, and strict value-addition requirements on exported gold.

     

  • GoldBod outlines “IPE” framework to catalyze investor returns, boost local refining, and address community discontent

    GoldBod outlines “IPE” framework to catalyze investor returns, boost local refining, and address community discontent

    In a major policy address targeting international investors, mining executives, and local leaders at the National Mining Dialogue in Accra, the Chief Executive Officer of the Ghana Gold Board (GoldBod) unveiled a structural strategy designed to transform Ghana’s mining sector from purely extractive operations into a value-retention and community-integrated investment ecosystem.

    Addressing stakeholders on the theme “Rethinking the Social Licence to Operate,” Sammy Gyamfi emphasized that long-term asset security and investor returns in Ghana are directly tied to local equity, value addition, and environmental stewardship.

    “A social license cannot survive where the youth believe mining has no place for them except as casual laborers… Mining communities must no longer be treated as land donors. They are custodians of the resource hence must be treated as development partners and economic shareholders,” the CEO declared.

     

    The “IPE” Investment Framework

    To modernize the sector and mitigate social operational risks, GoldBod proposed the IPE model Involve, Protect, Expand calling on institutional capital and private operators to align with national development goals:

    ● Involve: Higher, decentralized local royalty retention, structured Corporate Social Responsibility (CSR) contracts, and clear local procurement pathways across production services.

    ● Protect: Strict enforcement of environmental standards, mandatory land reclamation, and a zero-tolerance policy for water pollution to safeguard social stability.

    ● Expand: Government-backed support for indigenous capital in exploration, local refining, jewelry fabrication, and down-stream value creation.

    “Production without ownership is limited. Production without value addition is leakage. Production without community transformation is a broken social contract,” the GoldBod Chief remarked.

     

    Macroeconomic Impact & Operational Milestones

     

    The address highlighted gold’s dominant role in Ghana’s current economic performance, backed by strong production and trade figures:

     

    Metric / Indicator Output / Value Macroeconomic & Sector Impact

    Total Export Earnings (2025) ~$32.0 Billion Gold accounted for $20.2 Billion (63.1%), anchoring trade surpluses and foreign reserves.

    National Gold Output (2025) ~5.94 Million oz Artisanal & Small-Scale Mining (ASM) produced 3.11 million oz (52.4%), surpassing large-scale producers.

    GoldBod Formal ASM Exports ~170 Tonnes Generated over $17.0 Billion USD in foreign exchange since 2025, bolstering currency stability.

    Domestic Refining (2026 YTD) ~9 Tonnes Aggregated by GoldBod for local processing to capture refining fees and downstream benefits.

    Large-Scale Local Offtake 30% Local Acquisition Shifted from 20% offshore to 30% local acquisition to feed domestic refineries targeting LBMA certification.

     

    De-Risking Capital and Future Initiatives

    To overcome high entry barriers and de-risk exploration for new investors, GoldBod is partnering with the Ghana Geological Survey Authority on targeted geological studies in regions such as Funsi (Upper West) and Bensere (Ashanti). The initiative aims to build investment-grade portfolios while securing strategic state equity in future model mines.

    Key upcoming infrastructure projects designed to build an end-to-end ecosystem include:

    ● ISO-Certified National Assay Laboratory: Groundbreaking in November 2026 at the Aviance Cargo Village, Accra Airport, to establish Fire Assay as the mandatory standard for all ASM and large-scale gold exports.

    ● Traceability System: Awarding a technology-driven contract by late 2026 to ensure OECD-compliant, transparent supply chains.

    ● ASM Formalisation & Financing (2027): Launching equipment-financing programs tied to GoldBod aggregation models.

    ● Gold Tokenization Program (2027): Enabling fractional investment in gold-backed assets for domestic and regional investors.

    ● Ghana Gold Village: A dedicated industrial zone managed by subsidiary GoldBod Jewelry Limited to anchor commercial jewelry fabrication.

    Closing the address, the GoldBod CEO reassured the international and local business community that regulatory firmness and local equity go hand-in-hand with commercial profitability:

    “If we get this right, Ghana will not only produce gold. Ghana will produce prosperous mining towns, strategic industries around its minerals, and deeper community trust.”

     

  • Ghana signals post-restructuring recovery as historic GH¢10.8bn coupon payment disbursed

    Ghana signals post-restructuring recovery as historic GH¢10.8bn coupon payment disbursed

    By Adnan Adams Mohammed

     

    Ghana’s economic recovery marked a major milestone as the government fully disbursed GH¢10.8 billion in Domestic Debt Exchange Programme (DDEP) coupon payments on schedule, delivering a powerful signal of stability to local financial institutions and international credit markets.

    The timely cash settlement, the largest single payout since the 2023 debt restructuring, brings total returns delivered to domestic bondholders over the past 18 months to GH¢41.36 billion.

    The disbursement fulfills an explicit promise made by Minister for Finance, Dr. Cassiel Ato Forson, during the 2026 Mid-Year Budget Review in Parliament, where he assured lawmakers and the public that the government would honor its obligations to bondholders without delay.

    Speaking during his mid-year address to Parliament, Dr. Ato Forson underscored that consistent cash settlements remain central to rebuilding trust among domestic creditors and international market participants.

    “There was a time when the world doubted us. Today, every payment made on time answers that doubt, assuring bondholders in London, pension funds in New York, and investors at home that our word is our bond,” Dr. Ato Forson told Parliament. “Payment after payment, coupon after coupon, Ghana has proven one thing: We now keep our word. That is how market confidence is rebuilt—not through speeches, but through repayment.”

     

    Following the transaction, the Ministry of Finance released an official statement confirming the disbursement and highlighting its macroeconomic significance for Ghana’s sovereign risk profile.

    “In line with government’s commitment to the continued success and credibility of Ghana’s domestic debt operations, the payment was settled in full and on schedule,” the Ministry stated. “This timely settlement underscores the government’s fiscal discipline, reduces sovereign default risk, and reinforces the country’s financial credibility. All future DDEP obligations will also be paid in full and on schedule.”

     

    Market analysts expect the GH¢10.8 billion liquidity injection into financial institutions, pension funds, and asset managers to improve local market liquidity while cementing Ghana’s broader economic recovery efforts following the completion of its domestic and external debt restructuring exercises.

     

  • Dr Razak Opoku’s Objective Assessment of Gold Trading Losses in Ghana

    Dr Razak Opoku’s Objective Assessment of Gold Trading Losses in Ghana

    a). Specific Objectives of GoldBod:

    1. To increase national foreign exchange reserves.

    2. To stabilize the cedi.

    3. To curb illegal gold smuggling.

     

    b). Purported Losses at GoldBod:

     

    $1.7 billion losses, reported by IMF.

     

    c). Reasons for the $1.7 billion losses cited by IMF:

     

    Losses caused by policy-related accounting cost or “quasi-fiscal” cost or trading shortfalls or transaction cost, and NOT as a result of direct cash loss or financial loss to the State.

     

    Per page 10 of the report, “Losses accrued on gold trades are a combination of service and assay fees paid to GoldBod, discounts on gold sold to off-takers(exporters) and most importantly, exchange rate losses from the spread between the forex bureau rate paid to purchase gold and the cedi reference rate used for BoG(Bank of Ghana) accounting.”

     

    Therefore, it is UNFAIR to soley blamed GoldBod for the $1.7 billion losses when Bank of Ghana is clearly in the picture.

     

    d). Best Examples to Practically Explain the meaning of Policy-related Accounting Cost (“Quasi-Fiscal Cost”)

     

    1. Government decision to spend about GH¢ 207 million on Fertilizer Subsidy, an amount which represents 50% price cut to benefit farmers.

     

    2. Government decision to spend about GH¢ 25 billion on banking and financial sector clean-up exercise to protect the funds of depositors.

     

    3. Government decision to offer a GH¢ 2 per litre cut (reduction) at the pumps to cushion consumers of petroleum products.

     

    e). Is GoldBod Achieving its Specific Objective 1 (To Increase National Foreign Exchange Reserves):

     

    Yes, but there is still room for improvements.

     

    GoldBod has significantly contribute to the increase of the national foreign exchange reserves of Ghana, with estimated figure of about $10 billion.

     

    Is it prudent strategy to lose $ 1.7 billion to attract a revenue of $10 billion? Yes or No answer.

     

    Is there a better alternative gold trading policy for Ghana to raise $10 billion for the national foreign exchange reserves without the Country losing $1.7 billion as a result of policy-related accounting cost(quasi-fiscal cost)?

     

    f). Is GoldBod Achieving its Specific Objective 2(To stabilize the Cedi):

     

    Yes, so far there is relative stability of the cedi against the US Dollar and other major trading currencies since the introduction of the GoldBod initiatives.

     

    However, there is still room for improvements.

     

    We want to experience Ghana whereby $1 is equivalent to GH¢ 5, and also with the Cedi performing extremely better against other trading currencies.

     

    g). Is GoldBod Achieving its Specific Objective 3 (To curb illegal gold smuggling):

     

    Yes, but a lot more has to be done by GoldBod to completely eradicate gold smuggling.

     

    According to the IMF, Ghana is estimated to have lost about $11.4 billion to gold smuggling between 2019 and 2024.

     

    The discrepancy between gold exports reported by Ghana and imports recorded by the United Arab Emirates(UAE) exceeded $4 billion, according to the IMF Report.

     

    $1.7 billion loss at Bank of Ghana caused by policy-related accounting cost versus $11.4 billion loss from 2019 to 2024 caused by gold smuggling, which of them should we be worried about the most as a citizens of Ghana?

     

    h). Impact of GoldBod on the Activities of Galamsey

     

    My major concerns are that:

    1. what measures have GoldBod put in place to address galamsey activities in the country?, and also ensure that the GoldBod do not purchase gold from companies and individuals engaging in galamsey activities?

     

    2. Is the operations of GoldBod significantly contributing to rising activities of galamsey in the Country?

     

    3. How GoldBod has managed to reduce gold smuggling and by what estimate in terms of US Dollars?

     

    i). Gold for Oil Programme and its losses from 2022-March 2025

     

    The purposes of the Gold- for-Oil Programme(G4O) were:

    1. To ease pressure on foreign exchange reserves.

    2. Stabilize domestic fuel prices.

     

    However, according to Bank of Ghana, the Gold-for-Oil(G4O) programme incurred financial losses of about GHS 2.43 billion, with the termination of the G4O programme in March 2025.

     

    The net loss on gold trading for Gold-for-Reserves(G4R) and Gold-for-Oil(G4O) for 2024 was estimated to be around GHS 5.66 billion(approximately GHS 5.7 billion).

     

    Conclusion

     

    Bank of Ghana in trading partnership with Ghana Gold Board(GoldBod) has incurred a policy-related accounting costs of $1.7 billion according to the IMF, and this cost is not as result of directly losing cash(financial losses). However, this $1.7 billion loss is better compared to losing $11.4 billion between 2019-2024 to gold smuggling.

     

    Both for Gold-for-Oil(G4O) and Gold-for-Reserves(G4R) incurred financial loss of GHS 5.7 billion but the question is that, were the policies of G4O and G4R able to achieved its intended purposes of currency stability, fuel prices stabilization, and prevention or reduction of gold smuggling?

     

    As a Country, should we reverse to Gold-for-Oil(G4O) or Gold-for-Reserves(G4R) or maintain the Ghana Gold Board(GoldBod)?

     

    …signed…

    Razak Kojo Opoku(PhD)

  • Experts divided over GoldBod’s $1.7bn losses and forex impact

    Experts divided over GoldBod’s $1.7bn losses and forex impact

    By Adnan Adams Mohammed

     

    Ghana’s aggressive push to assert state control over the small-scale gold trade has ignited a fierce ideological divide among top economic thinkers.

    At the center of the dispute is whether a reported $1.7 billion loss under the Ghana Gold Board (GoldBod) represents an intolerable hit to public coffers or a necessary investment to defense-fund national currency stability.

    The state-led purchasing framework, introduced to channel small-scale mining output directly into official reserves, faces dual pressures: celebrated on one side as a market-shaping success that starved illicit smuggling routes, and criticized on the other as a flawed intervention that shifted massive financial burdens onto the central bank.

    A Price Worth Paying for Currency Stability?

    Defending GoldBod’s financial record, Dr. Emmanuel Steve Asare Manteaw, Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), argued that fixating on short-term balance sheet deficits misses the broader macroeconomic victory.

    According to Dr. Manteaw, the $1.7 billion deficit should be understood as a operational setup cost necessary to break foreign cartels that previously controlled the local gold supply.

    “We make it look like this is the first time Ghana is making losses in its gold purchase program,” Dr. Manteaw observed during an appearance on JoyNews’ PM Express. “I’ve looked at the data. In 2022, we made a loss. In 2023, 2024, and 2025, we’ve made losses all those years. Why didn’t that become a problem?”

    “So if you had to incur a loss of $1.7 billion to bring in $10 billion, that for me shouldn’t be a problem… For me, they are transaction costs, and all the governments over the years have been incurring transaction costs.”

     

    Dr. Manteaw explained that upon its inception, GoldBod was forced to buy gold at competitive forex-bureau rates to outbid foreign syndicates predominantly Chinese, Indian, and Turkish buyers who had long monopolized local supply lines by providing cash advances and machinery to small-scale miners. He maintained that the resulting foreign exchange liquidity has stabilized the cedi, lowered inflation, and built a foundation for broader economic initiatives, such as the proposed 24-hour economy.

    Structural Flaws and Hidden Tax Costs

    Taking a starkly different stance, economist Professor Godfred Alufar Bokpin warned against over-attributing currency performance to GoldBod, arguing that the policy’s current architecture carries severe hidden costs for Ghanaian taxpayers.

    While acknowledging that GoldBod successfully squeezed gold smuggling, Prof. Bokpin insisted that broad economic stability remains the product of policy management by the Bank of Ghana and the Ministry of Finance, rather than commodity trading interventions.

    “This whole domestic gold purchase arrangement for which Gold Board essentially became the face of it from 2025 has also come at a significant loss to us,” Prof. Bokpin warned. “If you adopt a holistic approach and look at the whole intervention we put in place, the losses actually exceed the $1.7 billion we are talking about here.”

     

    Prof. Bokpin pointed to design flaws within the purchasing model and highlighted the state’s decision to scrap the 1.5% withholding tax on small-scale gold production to incentivize official declarations a move that deprived the treasury of vital revenue.

    “You have all these losses sitting on the books of the Bank of Ghana. In addition to that, we had to abolish the 1.5% withholding tax,” he noted. “If you look at total gold exports from artisanal small-scale miners which exceed $10 billion the fiscal losses that could have gone to fund roads, schools, and infrastructure were given up.”

     

    Unwinding the Deficit

    Despite their conflicting interpretations of the program’s value, both analysts agreed that running billion-dollar operational gaps is unsustainable over the long term.

    Prof. Bokpin noted that state authorities are already preparing an exit mechanism to restructure the program’s financial exposure.

    “Government itself, together with the Gold Board and the Bank of Ghana, recognize that these losses are not sustainable going forward,” Prof. Bokpin stated. “As part of the exit plan, the government intends to reduce these losses from about 17% or 14.5% down to about 5% going forward.”

     

    As Ghana navigates its post-recovery economic landscape, the battle over GoldBod highlights a critical trade-off: how much state revenue should be spent to secure foreign exchange reserves in a highly informal extractive economy.

     

  • BoG targets ‘Total Financial Health’ to drive SME credit beyond payments

    BoG targets ‘Total Financial Health’ to drive SME credit beyond payments

    By Adnan Adams Mohammed

     

    The Bank of Ghana (BoG) has reiterated its commitment to driving a holistic financial inclusion agenda, declaring that true digital inclusion must move beyond mobile wallets and payments to unlock direct credit, insurance, and long-term investment for small and medium enterprises (SMEs) across the nation.

    Delivering the key remarks at the third edition of the Distinguished Digital Finance Lecture, Mrs. Matilda Asante-Asiedu, Second Deputy Governor of the Bank of Ghana, outlined the central bank’s strategic direction for scaling digital finance responsibly while ensuring no economic actor is left behind.

    “The next standard for inclusion in this country should be whether people can access credit, insurance, and investment on fair terms when they need to I am talking about total financial health, not simply whether they hold an account,” Mrs. Asante-Asiedu declared.

    Bridging the $4.8 Billion SME Credit Gap

    Addressing finance executives, fintech innovators, and industry stakeholders, the Second Deputy Governor highlighted that despite Ghana’s world-class payment interoperability infrastructure, a massive disconnect remains between digital transaction records and credit access. Ghana’s SME sector currently faces an estimated annual financing gap of nearly $4.8 billion.

    “We have built extraordinary payment rails, but we have not yet built equally extraordinary credit rails,” Mrs. Asante-Asiedu noted. “An SME owner in Kumasi can receive payment for goods in three seconds through Instant Pay, but may wait three months or longer for a working-capital loan decision because that credit consideration is not built on the same digital footprint that just proved her capacity to receive payment.”

    She emphasized that Ghana does not suffer from a capital shortage, but rather an architectural challenge regarding what financial institutions accept as collateral. She urged lenders to adapt to modern economic realities by reading alternative digital records such as mobile money histories, receivables, and signed contracts.

    “A great deal of the value being created in Ghana today sits in contracts, in receivables, and in transaction histories rather than in fixed assets, but our systems have not yet caught up with that shift,” she explained.

    A Solid Foundation for Innovation

    Ghana’s digital payments landscape has experienced unprecedented growth. Through the Ghana Interbank Payment and Settlement Systems (GhIPSS), mobile money wallets, bank accounts, and card schemes operate on a fully interoperable network.

    954 Million Transactions: Processed via mobile money platforms in June 2026 alone, with a total value of approximately GHS 493 billion.

    84.6 Million Accounts: Total registered mobile money accounts in the country, supported by 26.4 million active accounts and over one million registered agents.

    2 Million+ Users: Onboarded onto the bank-led mobile payment platform, GhanaPay, since its launch in 2022.

    To preserve stability without stifling growth, the Bank of Ghana has implemented forward-looking regulatory measures:

    Regulatory Sandbox Framework: Allows fintechs to test novel products from digital lending to insurtech under active central bank supervision.

    Digital Credit Services Directive: Licensing regime introduced to bring short-term digital lenders out of the regulatory shadows.

    Cyber and Information Security Directive (CISD 2026): Standards tailored for cloud computing, AI-driven credit scoring, and evolving cybersecurity risks.

    Microfinance Sector Modernization: Transforming 147 Rural and Community Banks under the Revised Microfinance Sector Framework 2026 to deepen last-mile delivery.

    Key Commitments for the Road Ahead

    The central bank outlined four concrete commitments to ensure digital financial innovation yields real economic growth:

    Finalize Open Banking Frameworks: Measure success by the volume of credit extended to small businesses based on transparent transaction data.

    Re-evaluate Collateral Frameworks: Expand acceptable security rules so verified receivables and purchase orders can unlock working capital.

    Harmonize Financial Regulation: Strengthen cross-sector coordination through the Financial Stability Council alongside the National Insurance Commission (NIC) and Securities and Exchange Commission (SEC).

    Democratize Cybersecurity: Provide systemic support under CISD 2026 so that smaller institutions and Community Banks can adequately withstand cyber threats.

    Closing her address, Mrs. Asante-Asiedu reminded stakeholders that digital transformation must serve ordinary citizens at the grassroots level.

    “Scale is as much a regulatory achievement as it is a technological one,” she stated. “Our task now is to make sure that the same phone that lets a market trader in Techiman send money in three seconds also lets her borrow against the business she has spent a decade building, on fair and competitive terms.”

     

     

  • Foreign investors eye Ghana’s Non-Interest Banking market as BoG clears regulatory pathway

    Foreign investors eye Ghana’s Non-Interest Banking market as BoG clears regulatory pathway

    By Adnan Adams Mohammed

     

    Foreign institutional investors and alternative finance capital are positioning for major entry into Ghana’s financial sector following the Bank of Ghana’s (BoG) formal activation of the Non-Interest Financial Advisory Council (NIFAC).

    The new regulatory framework signals a lucrative opening for global non-interest banks, private equity firms, and asset management funds seeking high-yield opportunities in West Africa’s expanding alternative finance market. By establishing clear oversight under Act 930, Ghana is clearing legal hurdles to attract long-term foreign direct investment into asset-backed infrastructure, leasing, and commercial trade projects.

    Inaugurating the advisory council at the central bank headquarters, Bank of Ghana Governor Dr. Johnson Pandit Asiama highlighted that the regulatory shift provides foreign and domestic investors with a reliable framework to deploy alternative capital models alongside conventional banking.

    “Non-interest finance widens that choice. It is not free finance, but a complement to conventional banking based on trade, leasing, partnerships, and asset-backed transactions,” Dr. Asiama noted.

     

    For international financial institutions, the newly released Guideline for the Regulation and Supervision of Non-Interest Banking creates two distinct market entry strategies: foreign banks can establish fully owned non-interest subsidiaries or license specialized windows through existing Ghanaian commercial entities.

    Dr. Asiama reassured investors and market participants that regulatory approval for new financial products will prioritize structural clarity, consumer confidence, and systemic stability to protect capital deployments.

    “The success of this initiative will not be measured by the number of new products introduced, but by whether those products are sound, useful, and worthy of public confidence,” Dr. Asiama asserted. “Products should not be accepted merely because they carry a non-interest label. Their structure, risks, costs, and obligations must be transparent.”

     

    Chaired by renowned regulatory expert Prof. Bashir Aliyu Umar, the cross-border council is tasked with advising the BoG while extending technical support to the Securities and Exchange Commission (SEC) and the National Insurance Commission (NIC). This multi-agency alignment is expected to accelerate the issuance of alternative capital market instruments including sovereign and corporate Sukuk bonds opening direct channels for international portfolio investors seeking yield in West Africa.

     

  • Understanding Ghana’s $1.7bn Gold Trading Losses: Policy cost, not stolen cash

    Understanding Ghana’s $1.7bn Gold Trading Losses: Policy cost, not stolen cash

    Following widespread public debate over the financial performance of the Ghana Gold Board (GoldBod) and the Bank of Ghana (BoG), economic analysts are urging citizens to distinguish between policy-related accounting adjustments and direct financial theft.

    The conversation surrounding Ghana’s central bank gold purchasing initiatives reached a fever pitch following reports referencing International Monetary Fund (IMF) data, which cited approximately $1.7 billion in cumulative losses associated with state gold trading strategies.

    However, closer inspection of the data reveals a far more nuanced economic picture.

    Demystifying the $1.7 Billion Accounting Cost

    According to page 10 of the recent IMF report, the reported $1.7 billion figure does not represent stolen funds or direct cash missing from state coffers. Instead, the loss reflects “quasi-fiscal” or policy-related accounting costs.

    “Losses accrued on gold trades are a combination of service and assay fees paid to GoldBod, discounts on gold sold to off-takers, and most importantly, exchange rate losses from the spread between the forex bureau rate paid to purchase gold and the cedi reference rate used for BoG accounting,” stated policy expert Dr. Razak Kojo Opoku in an objective assessment published this week.

    Dr. Opoku explained that quasi-fiscal costs are routine government trade-offs designed to achieve larger socio-economic benefits.

    “Think of it like the GH¢ 207 million spent on fertilizer subsidies to offer a 50% price cut to farmers, the GH¢ 25 billion spent on the financial sector clean-up to protect depositors, or fuel tax cuts at the pump,” Dr. Opoku noted. “These are deliberate accounting decisions made to absorb shocks on behalf of the public, not money lost to corruption. It is unfair to solely blame GoldBod when the central bank’s accounting framework is central to the picture.”

    Evaluating Core Objectives: Reserves, Cedi, and Smuggling

    GoldBod was established with three primary mandates: boosting national foreign exchange reserves, stabilizing the cedi, and curbing illegal gold smuggling.

    ● Foreign Exchange Reserves: Ghana’s national reserves have surged significantly, gaining an estimated $10 billion through central bank gold accumulation programs. Analysts argue that incurring a $1.7 billion accounting cost to secure $10 billion in liquid reserve buffers represents a defensible strategic trade-off, though experts question whether a less costly alternative exists.

    ● Cedi Stability: The cedi has experienced relative stability against the US Dollar and other major foreign currencies since GoldBod’s interventions matured. However, stakeholders note that further structural work is needed to drive the exchange rate down toward a target of GH¢ 5 to $1.

    ● Curbing Smuggling: The IMF estimates that Ghana lost roughly $11.4 billion to illicit gold smuggling between 2019 and 2024, with reported Ghanaian exports and United Arab Emirates (UAE) recorded imports showing a discrepancy exceeding $4 billion.

    “As Ghanaian citizens, we must ask ourselves which issue demands greater national concern: a $1.7 billion accounting cost incurred to build reserves, or the $11.4 billion lost directly to unrecorded gold smuggling over five years?” Dr. Opoku questioned.

     

     

     

    Environmental Concerns and the Galamsey Threat

    Despite progress on trade balances, major questions remain regarding GoldBod’s environmental impact. Chief among public concerns is whether GoldBod’s purchasing network inadvertently incentivizes illegal small-scale mining (galamsey).

    “Critical questions must be answered by GoldBod management,” Dr. Opoku emphasized. “What stringent verification measures are in place to ensure GoldBod does not buy gold from companies or individuals engaged in galamsey? Is the expansion of official buying channels inadvertently fueling illegal mining on the ground?”

    The Legacy of Gold-for-Oil (G4O)

    The evaluation comes on the heels of the formal termination of the Gold-for-Oil (G4O) program in March 2025. Designed to ease forex pressure and stabilize domestic pump prices, Bank of Ghana records show G4O incurred direct financial losses of roughly GH¢ 2.43 billion over its run.

    Combined, the Gold-for-Oil (G4O) and Gold-for-Reserves (G4R) initiatives registered a total net trading loss of approximately GH¢ 5.7 billion in 2024 alone.

    As Ghana navigates its post-G4O landscape, policymakers face a critical decision: should the country revert to legacy mechanisms like G4O and G4R, or refine the operations of the Ghana Gold Board to eliminate accounting losses while protecting environmental standards? While the $1.7 billion IMF loss reflects the high price of currency intervention, citizens and analysts alike agree that permanent success depends on stopping galamsey at the source and closing the $11.4 billion smuggling drain for good.