News Guide Africa

Tag: Domestic Gold Purchase Programme (DGPP)

  • GoldBod rejects MP’s claims of GH₵1bn overdraft as “Base Falsehood”

    GoldBod rejects MP’s claims of GH₵1bn overdraft as “Base Falsehood”

    The Ghana Gold Board (GoldBod) has issued a stinging rebuttal against allegations by Tano South MP and Deputy Ranking Member on Parliament’s Finance Committee, Dr. Gideon Boako, who alleged that the state body owes an unpaid GH₵1 billion overdraft to the Bank of Ghana (BoG).

    In an official statement addressing the matter, GoldBod labeled the lawmaker’s assertions as “totally false,” “contrived,” and a deliberate effort to misinform the public regarding its financial health, demanding an immediate retraction and a full apology.

    The controversy stems from comments made by Dr. Boako during a televised panel discussion on Adom TV on Monday, August 24, where he cast doubt on the financial performance of the institution’s gold acquisition operations.

    “I’ve heard people say that GoldBod says they made a profit of GH¢907m, but that cannot be true because GoldBod took a GH¢1bn overdraft from the Bank of Ghana, and if that is reflected in their books, they’ll actually be in a loss,” Dr. Boako stated during the broadcast.

     

    His comments ignited swift backlash from GoldBod leadership, who moved quickly to set the record straight regarding their credit history and operational ledger.

    Through a formal press release issued by Media Relations Officer Prince Kwame Minkah, the corporate entity clarified that it operates without central bank debt instruments or external commercial liabilities.

    “For the records, the GoldBod has never at any time since its establishment taken a loan, overdraft or any debt instrument from the Bank of Ghana or any financial institution whatsoever,” Minkah stated.

     

    The statement further called into question the motives behind the claims, emphasizing that the body’s financial statements remain fully transparent and solvent.

    “The claim attributed to Dr. Gideon Boako is contrived and should be treated with utmost contempt,” the release noted, adding: “We entreat the MP to unequivocally retract and apologise for putting out this falsehood.”

     

    The clash marks the latest point of friction in an ongoing political debate over the management and auditing of the Domestic Gold Purchase Programme (DGPP). GoldBod maintains that its declared GH₵907 million operating profit reflects genuine corporate performance, cautioning political actors against conflating central bank balance sheets with GoldBod’s independent financial accounting.

     

  • GoldBod launches major supply-chain mapping initiative to trace Ghana’s gold movement

    GoldBod launches major supply-chain mapping initiative to trace Ghana’s gold movement

    By Adnan Adams Mohammed

     

    Ghana has set in motion an ambitious data-tracking campaign to map, compile, and analyze the flow of gold across the nation’s entire precious minerals value chain.

    The sweeping effort led by the newly formed Ghana Gold Board (GoldBod) is designed to give authorities full visibility over the movement of gold from mining sites to local refineries and final export destinations, effectively plugging systemic revenue leaks and shutting down illicit trade channels.

    According to GoldBod Chief Executive Officer, Sammy Gyamfi, establishing a secure, data-backed map of the industry is essential to ensuring the state captures the full economic value of its natural resources.

    “Effort is underway to map, compile, and analyze comprehensive data on how gold moves through Ghana’s value chain from extraction sites to local buyers, refineries, and export markets,” Gyamfi stated.

     

    A Surge in Domestic Value Addition

    The drive to map the supply chain coincides with major strides in domestic processing. GoldBod revealed that it has successfully processed 7.1 metric tonnes of domestically purchased gold through local refineries this year alone, marking a decisive structural shift away from the historical practice of exporting raw, unrefined bullion.

    Highlighting the expanding capacity and reliance on domestic refining infrastructure, Gyamfi underscored the direct impact of recent structural reforms:

    “7.1 metric tonnes of gold bought by GoldBod this year were refined in Ghana,” Gyamfi confirmed, pointing to local value addition as a cornerstone of the country’s economic strategy.

     

    Transitioning Post-Central Bank Program

    The national data-mapping initiative and expanded purchasing mandate mark a new phase in Ghana’s gold governance, following the sunset of earlier interventionist models.

    Gyamfi clarified the evolution of the state’s purchasing mechanisms, noting that GoldBod has fully taken over the regulatory, purchasing, and export operations previously handled under temporary central bank frameworks.

    “The Domestic Gold Purchase Program was a Bank of Ghana initiative; it ended in March 2026,” Gyamfi explained, noting that GoldBod now provides a permanent, centralized institutional structure to oversee the market.

     

    A Broad Policy “Reset”

    Industry analysts believe that combining rigorous supply-chain data mapping with mandatory local refining will provide the state with unprecedented visibility over its mineral wealth, dramatically reducing smuggling and under-declaration across artisanal and commercial mining sectors alike.

    Attributing the current momentum to top-level policy direction, the GoldBod Chief Executive expressed optimism that the unified strategy of real-time tracking, local processing, and centralized oversight will fundamentally alter the economics of Ghana’s mining industry.

    “President Mahama has reset Ghana’s gold sector,” Gyamfi remarked, emphasizing that the aggressive push for full traceability and in-country value creation will guarantee significantly higher financial returns for the nation.

     

  • GoldBod Record: 7.1 tonnes of gold refined locally in massive sector overhaul

    GoldBod Record: 7.1 tonnes of gold refined locally in massive sector overhaul

    By Adnan Adams Mohammed

     

    Ghana’s newly established Gold Board (GoldBod) has successfully processed 7.1 metric tonnes of domestically purchased gold through local refineries this year, marking a decisive shift toward domestic value addition in the nation’s precious minerals industry.

    Speaking on the sector’s recent progress, Chief Executive Officer of GoldBod, Sammy Gyamfi, highlighted the scale of local refinement achieved so far, framing it as a direct result of comprehensive reforms aimed at retaining value within the country.

    “7.1 metric tonnes of gold bought by GoldBod this year were refined in Ghana,” Gyamfi stated, pointing to the expanding operational capacity of domestic refining infrastructure.

    The achievement comes as the institutional framework governing Ghana’s gold trade undergoes significant restructuring following the conclusion of previous central bank initiatives.

    “The Domestic Gold Purchase Program was a Bank of Ghana initiative; it ended in March 2026,” Gyamfi explained, noting that GoldBod has since assumed a central role in streamlining purchase, regulatory, and export operations.

    To solidify these operational gains, GoldBod is rolling out a national data-tracking framework aimed at mapping the entire supply chain to curb illegal trade, enhance transparency, and maximize revenue collection.

    “Effort is underway to map, compile, and analyze comprehensive data on how gold moves through Ghana’s value chain from extraction sites to local buyers, refineries, and export markets,” Gyamfi added.

    Attributing the momentum to broader policy leadership, the GoldBod chief executive underscored the administration’s strategic focus on resource governance.

    “President Mahama has reset Ghana’s gold sector,” Gyamfi remarked, emphasizing that the combination of supply-chain tracking, local refining, and centralized oversight will secure greater economic returns for the country moving forward.

     

  • The Golden gamble: Why Ghana’s new ‘Gold Board’ must find its own shine to survive

    The Golden gamble: Why Ghana’s new ‘Gold Board’ must find its own shine to survive

    By Adnan Adams Mohammed

    On the surface, Ghana is currently in the midst of a historic “Gold Reset.” With global bullion prices testing the US$4,000 per ounce mark in early 2026 and the newly established Ghana Gold Board (GoldBod) promising to formalize the artisanal sector, the nation’s economic future looks, quite literally, gilded.

    However, beneath the high-gloss policy announcements lies a structural anxiety. According to Prof. William Kwasi Peprah, Associate Professor of Finance at Andrews University, the greatest threat to this ambitious initiative isn’t a lack of gold it is a precarious financing model that risks repeating the mistakes of the past.

    The “cocoa ghost” haunting gold

    The primary fear among economists is that GoldBod could mirror the financial struggles of COCOBOD, which currently grapples with debts exceeding GH₵32 billion. Prof. Peprah warns that without a robust, independent funding structure, GoldBod could become a fiscal burden rather than a boon.

    “The gold board idea is very good,” Peprah noted during a recent session on Joy News’ PM Express. “But the financing model needs to be looked at carefully so that it doesn’t tead to the next Cocoa Board.”

    The concern is rooted in a shift in central bank policy. The Bank of Ghana (BoG), which has been instrumental in the Domestic Gold Purchase Programme (DGPP), is reportedly preparing to exit the direct financing of gold trade. This leaves GoldBod reliant on:

    Government Appropriations: Which, according to Peprah, saw significant shortfalls in 2025.

    Advance Payments: A provision in the GoldBod Act (Act 1140) that allows the board to take money from international buyers upfront—a model that requires high levels of global trust and transparency.

    The need for a “safety net”

    Currently, Ghana is enjoying a “windfall” driven by global fear, currency hedging against a devaluing US dollar, and inflation. But Prof. Peprah insists that high prices are never permanent. He is leading the call for a Gold Commodity Stabilisation Fund, separate from the board’s current US$279 million revolving fund.

    “Now that we are having this windfall, we should be able to establish a stabilisation fund purposely for gold… to guard against the shocks that will come,” Peprah argued.

    This would function similarly to the Ghana Stabilisation Fund (GSF) used for petroleum, providing a buffer when prices inevitably dip. Without it, a sudden market correction could leave Ghana’s trade balance and the livelihoods of thousands of small-scale miners in a “struggling position.”

    A structural tug-of-war

    The GoldBod reform is the boldest move in decades to reclaim value from the artisanal and small-scale mining (ASM) sector, which accounts for over 30% of Ghana’s output. However, the board currently wears three hats:

    1. The Regulator: Licensing all gold activities.

    2. The Commercial Entity: The sole authorized buyer and exporter of ASM gold.

    3. The Investigator: Possessing police-level powers to stop smuggling.

    Critics and scholars like Peprah point out that this consolidation of power is expensive to maintain and operationally complex. For GoldBod to succeed where others have faltered, it must move beyond “rent-collecting” and prove it can manage its own liquidity without being “whipped” by the same debt cycles that have plagued the cocoa sector.

    Feature COCOBOD (Current) GoldBod (Proposed)

    Primary Funding Syndicated International Loans Domestic Bonds / Advance Off-taker Payments

    Stability Mechanism Price Stabilization Fund Proposed Gold Stabilisation Fund

    Regulatory Role Oversight of Cocoa Value Chain Sole Authority for Assay & Export

    Key Risk High Debt / Interest Costs Market Volatility / Funding Gaps

    The verdict

    Ghana’s “Gold Reset” is a high-stakes bet on resource sovereignty. While the policy framework is solid and the law transformative, the “operationalization” specifically how the board pays for the three tonnes of gold it aims to buy weekly remains the billion-dollar question.

    As Prof. Peprah puts it: “If we fail on gold, our trade balance will move into a very struggling position.” The message to the government is clear: save the windfall now, or pay the price later.